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The Corrosive Downside of Acquihires

Both Sides of the Table

If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. (If That’s why liquidation preferences exist – downside protection. Get yourself in a big demo day competition. Go do a startup.

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Killer articles on startups

A Smart Bear: Startups and Marketing for Geeks

Keepstream is one of the five Capital Factory companies graduating today at Demo Day here in Austin. Great basic guide on VC / Startup liquidation preferences: [link]. Beware the trappings of liquidation preference | VentureBeat. Aug 16, 2010 at 6:15am.

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Popular Posts

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Raising Capital: 5 Reasons Convertible Debt Sucks HOT The Collapse of the VC Ecosystem & What It Will Look Like Post Recovery 10 Tips On Negotiating With VCs Dating…er…Fundraising Etiquette The Science & Art of Term Sheet Negotiation HOT How Liquidation Preferences Work HOT How Much Money Should I Raise?

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The Seeds Have Changed: An Epilogue to The New Venture Landscape

K9 Ventures

Since access to investing in tech companies is limited, a lot of this capital is finding it’s way into new funds and, I’m going to guess, that it’s also working it’s way through direct investments in companies coming out of accelerator demo days and AngelList. Worst case they get their money back, best case they hit a home run.

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PSA – So God Made a Venture Capitalist

ithacaVC

And then go to a demo-day and stay past midnight listening to more pitches, empathizing with entrepreneurs about how hard it is to start a company. So, God made a VC! God said “I need somebody that can shave their head and hide their grey hair away, wear funny shoes and fit in with an age demographic of their grand-kids. So, God made a VC!

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ProfessorVC: Negotiating an Angel Deal in your PJ's

Professor VC

I had a discussi on with another angel investor a few months ago and he was bragging about the deal he just struck that included a 3X participating liquidation preference. Are DEMO's days numbered? The old Keep It Simple Stupid Principle. How Much Diligence is Due. ▼ 2010. (7). ► October. (2). ► July. (1).

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Popular Posts

Altgate

Raising Capital: 5 Reasons Convertible Debt Sucks HOT The Collapse of the VC Ecosystem & What It Will Look Like Post Recovery NEW 10 Tips On Negotiating With VCs NEW Dating…er…Fundraising Etiquette The Science & Art of Term Sheet Negotiation HOT How Liquidation Preferences Work HOT How Much Money Should I Raise?