article thumbnail

What Does the Post Crash VC Market Look Like?

Both Sides of the Table

This happens slowly because while public markets trade daily and prices then adjust instantly, private markets don’t get reset until follow-on financing rounds happen which can take 6–24 months. Of these companies that become well financed we only need 15–25% of THOSE to pan out to return 2–3x the fund. What is a VC To Do?

article thumbnail

Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. “A startup could also give better deals to investors they expected to help them most&# – That is a quote from Paul on the “high resolution financing&# post.

Finance 286
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Remind Me Why I Love You? (Why “In Person” is Everything)

Both Sides of the Table

You race back to the office to tell everybody how well it went and you wait for the follow-up call to have a partners’ meeting or talk about term sheets or at least dip into due diligence. What do I do now? Some were interesting, some weren’t.

article thumbnail

How to Pick the Right Attorney For Your Startup

Up and Running

After a couple of due diligence meetings with the investor and our attorneys, he gave us the check. of our company in exchange for the $300K, and my business partner and I each diluted from 50% ownership down to 33.3% ownership and never dilute. We gladly handed it over to him as part of the due diligence process.

article thumbnail

Who are the Major Revenue-Based Investing VCs?

David Teten

Since 2017 we’ve managed $3 million in revenue-based financing, which helps cash-strapped technology companies grow. Benefits: Non-dilutive, flexible credit offerings that fit SMB or enterprise SaaS. According to John Borchers, Co-founder, Decathlon is the largest revenue-based financing investor in the US.

Revenue 60
article thumbnail

How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

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).

Finance 70
article thumbnail

The Authoritative Guide to Prorata Rights

Both Sides of the Table

In the old days there weren’t many fights about whether angels would take their prorata rights in financing rounds. If they trust their own due diligence process why worry about a silly thing called “signaling?” Thus begins the dance. Why prorata rights used to be less of a big deal to angels. That seems fair.