Cost Finance Liquidation Preference Product 
Both Sides of the Table
DECEMBER 11, 2022
Sure, we built SaaS products before the term even existed but at 31 it was hard to delineate reality from what all of the monied people around us were telling us what we were worth. We had nascent revenues, ridiculous cost structures and unrealistic valuations. Until we weren’t. Nobody cared about our valuations any more.
Feld Thoughts
FEBRUARY 9, 2016
One of my favorite lines in buried in the middle: “I’ve heard enough companies say “we simply can’t cut costs or it will hurt the long-term potential of the business” to get a wry smile. Pragmatic cost cuts are always possible and often productive.” Then use the down round to clean up your preference overhang.
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Up and Running
AUGUST 17, 2015
Between my experiences as a management consultant, as well as my product and marketing roles at multiple tech companies, I felt that I had enough operational experience to make that leap sooner than later. Additionally, I had already studied Economics and Finance during undergrad, making the academic part of an MBA seem a little redundant.
David Teten
AUGUST 21, 2019
Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. Lower processing cost. Much lower cost of capital, if company is highly successful. The cost of VC funding to a unicorn CEO can easily be the equivalent of paying well over 100% annual interest.
K9 Ventures
JUNE 5, 2015
In addition, the competition for and the cost of hiring people, especially in the San Francisco Bay Area, has gone up dramatically. So while the infrastructure cost and startup costs may have declined, the operating costs have increased. If it doesn’t have the product fully baked yet? Pre-Seed is the New Seed.
abovethecrowd.com
APRIL 20, 2016
Why the Unicorn Financing Market Just Became Dangerous…For All Involved. By the first quarter of 2016, the late-stage financing market had changed materially. Investors were becoming nervous and were no longer willing to underwrite new Unicorn-level financings at the drop of a hat. 2015 was the exact opposite.
K9 Ventures
MARCH 23, 2011
The convertible note was really intended as an instrument for a “bridge financing” – when an equity round was imminent, and likely to occur, but the company needed some money in between. In that case, it made good sense to have a debt instrument, where the note holder then converted into equity when the financing occurred.
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