Demand Finance Liquidation Preference Valuation 
Tim Keane
JANUARY 12, 2010
Term-sheets and Valuations: Thinking about Negotiations. I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.
Startup Company Lawyer
MARCH 14, 2010
After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).
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Both Sides of the Table
SEPTEMBER 5, 2012
To better understand the arguments for / against convertible equity I suggest you read my posts on those topics: Is convertible debt preferable to equity? Was Paul Graham right in his “high resolution” financing post? Convertible Notes Also Can Have Multiple Liquidation Preferences. That’s right.
Feld Thoughts
JUNE 2, 2015
Or, if you just want the paragraph, it’s: “If this note converts at a price higher than the cap that you have been given you agree that in the conversion of the note into equity you agree to allow your stock to be converted such that you will receive no more than a 1x non-participating liquidation preference plus any agreed interest.”.
abovethecrowd.com
MAY 20, 2013
There are common stock, common options, and as many as three to five different layers of preferred stock, each with a specific liquidation preference. Private company valuation techniques are particularly specious (this contrasts with a public company that every day has a definitive market capitalization).
K9 Ventures
NOVEMBER 21, 2011
You raised a Series A round, a Series B round, and this year are just about to raise a big Series C round at a great valuation. And that too usually when there is sufficient investor demand for the next round, i.e. the leverage needs to be in the company’s hand (rather than investors) for any type of founder liquidity to even be an option.
K9 Ventures
NOVEMBER 21, 2011
You raised a Series A round, a Series B round, and this year are just about to raise a big Series C round at a great valuation. And that too usually when there is sufficient investor demand for the next round, i.e. the leverage needs to be in the company’s hand (rather than investors) for any type of founder liquidity to even be an option.
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