| |
 Conversion + Pre-Money Valuation
|
35 articles |
| Page 1 of 1 | Previous | Next | SEEING BOTH SIDES JULY 15, 2009 In VC deals, Price Doesn't Matter - But The "Promote" Does typical start-up company will do 2-4 venture capital financings before a successful exit (or, conversely, an ignomious ending). Entrepreneurs often mistakenly focus solely on the pre-money valuation while VCs look at multiple knobs in the negotiation to drive to a set of terms that, in total, they find acceptable. | | | | | | |
| THE STARTUP LAWYER JUNE 22, 2010 The Convertible Note Discount Price Cap compensate the angel for the early risk), the convertible promissory note will have an automatic conversion discount feature by which the angel investor will exchange the convertible debt for shares of the Series A Preferred Stock at a discount to the price per share paid by the venture capital fund at a Qualified Financing. per share. | ASK THE VC SEPTEMBER 20, 2011 Convertible Debt – Valuation Caps Today, in our series on convertible debt, we examine the conversion valuation cap. The cap is an investor-favorable term that puts a ceiling on the conversion price of the debt. The entrepreneurs thinks their valuation should be higher. They receive a term sheet at $20 million pre-money valuation. | THE STARTUP LAWYER FEBRUARY 4, 2011 How to Evaluate an Offer from a Startup Incubator The following are some issues to consider and actions to take before accepting an incubator’s offer: (1) Calculate Valuation and Determine Value. Pre-money valuations startups receive from incubators are typically low…really low. Great news — your startup just got accepted to an incubator! Conclusion. | VENTUREHACKS.COM OCTOBER 21, 2010  The Option Pool Shuffle Use a hiring plan to justify a small option pool, increase your share price, and increase your effective valuation. Don’t lose this game. | | | | | | | |
| -
INSTIGATOR BLOG | WEDNESDAY, SEPTEMBER 1, 2010 Raising Financing: Convertible Debt vs. Equity
Fred Wilson joined the conversation, as did Mark Suster. It can be an uncomfortable conversation to have with investors, and it can turn into a bit of a stand-off, where no one wants to be the first one to name a price. And I’d like the pre- money value to be $1.5M. I’ve raised money as convertible debt. MORE >> - Finding And Buying A Domain Name
That conversation with Mark was in the summer/fall of 2007. suspect domain prices and pre- money valuations of newly launched startups are highly corrrelated. But there is also a limit to how much time and money you want to spend on this effort. It's not in my top ten but it could be. Del.icio.us MORE >> -
THE STARTUP LAWYER | TUESDAY, AUGUST 24, 2010 Convertible Note Term Sheets
Convertibility : What amount of equity financing is required to trigger automatic conversion of the convertible notes to equity (i.e., Do the convertible notes convert to equity on the maturity date, and if so, at what pre- money valuation ? It also makes any potential back-and-forth on terms easier to manage. 2X/3X, etc.) MORE >> -
 Keep Term Sheets Simple for Quicker Cash to Spend
Entrepreneurs sometimes assume an initial agreement with an Angel is a commitment, so they start spending before any money is received. The price is the percent of ownership given to the investor, calculated as “investment/post- money valuation.” Remember a term sheet agreement is not a deal until the check clears. MORE >> -
FELD THOUGHTS | FRIDAY, JULY 29, 2011 Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment
Through a series of conversations, Jane and Dick have come up with the idea to develop a social network tailored to the medical community. While they could both go without salaries for a year, Dick had no extra money to invest in the business. It helps control transaction costs in terms of both time and money. Let’s get started. MORE >>
- Term Sheet Purgatory THE STARTUP LAWYER | MONDAY, JANUARY 10, 2011
- Why Startups Should Raise Money at the Top End of Normal BOTH SIDES OF THE TABLE | SUNDAY, JUNE 5, 2011
- 8 Questions to Help Decide if You Should be Raising Money Now BOTH SIDES OF THE TABLE | THURSDAY, FEBRUARY 17, 2011
- How to Determine Seed Round Valuation MARK BIRCH | THURSDAY, JULY 14, 2011
- 9 Quick Tips Learned While Raising $33 Million In Venture Capital ONSTARTUPS | SUNDAY, FEBRUARY 7, 2010
- Making the Grade LEARN TO DUCK | THURSDAY, OCTOBER 13, 2011
- The Power of Quora & Why Benchmark was Right to Pay Up BOTH SIDES OF THE TABLE | MONDAY, AUGUST 23, 2010
- Making the Grade LEARN TO DUCK | THURSDAY, OCTOBER 13, 2011
- Can VC’s Invest Across Two Funds? BOTH SIDES OF THE TABLE | SATURDAY, APRIL 3, 2010
- Fire in The Valley, Fire in My Belly. and Yes, Mike, I Have. 500 HATS | WEDNESDAY, SEPTEMBER 22, 2010
- Why Venture Capitalists Avoid Innovation: They Like Making Money ONSTARTUPS | THURSDAY, FEBRUARY 18, 2010
- The Real Lesson of AngelGate FORCE OF GOOD: A BLOG BY LANCE WEATHERBY | THURSDAY, SEPTEMBER 23, 2010
- Time is the Enemy of All Deals BOTH SIDES OF THE TABLE | THURSDAY, FEBRUARY 25, 2010
- Series A Warrants Based On Milestones Versus A Deal With Two Closes ASK THE VC | MONDAY, JULY 25, 2011
- Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First BOTH SIDES OF THE TABLE | WEDNESDAY, APRIL 14, 2010
- 1M/1M Strategy Roundtable: Try To Get At Least $2M Pre-Money In Seed Round Valuation VENTUREWOODS | THURSDAY, OCTOBER 7, 2010
- Strategy Roundtable: Try To Get At Least $2M Pre-Money In Seed Round Valuation READWRITESTART | THURSDAY, OCTOBER 7, 2010
- Ask the Angels ASK THE ANGELS | MONDAY, JULY 28, 2008
- Why Co-Founders Are a Startup's Biggest Liability | The Startup Lawyer THESTARTUPLAWYER.COM | WEDNESDAY, FEBRUARY 24, 2010
- When In Doubt on Pre-Money Valuation, Smart Guys Procrastinate RECENT BUZZES - VC EXPERTS, INC. | WEDNESDAY, AUGUST 3, 2011
- Fenwick & West - Internet/Digital Media and Software Industries Silicon Valley and Seattle 2010 RECENT BUZZES - VC EXPERTS, INC. | WEDNESDAY, APRIL 13, 2011
- Ask the Angels ASK THE ANGELS | TUESDAY, MARCH 4, 2008
- Ask the Angels ASK THE ANGELS | WEDNESDAY, MARCH 5, 2008
- Ask the Angels ASK THE ANGELS | WEDNESDAY, MAY 14, 2008
| |
