Rob Go
AUGUST 29, 2016
Most term sheets talked about the valuation in these terms, and you added the dollars invested to get a post-money valuation. Founders also had to do a little math on the new option pool to really understand what their ownership would be post investment, since it was typically taken out of the company pre-money.
Both Sides of the Table
SEPTEMBER 25, 2010
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. As I’m generally a believer in ‘pricing rounds’ I initially didn’t agree with the premise of the post. Photo credit: D.
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Both Sides of the Table
SEPTEMBER 28, 2014
Think: If you raise $10 million at a $30 million pre ($40 million post) that investor needs you to exist for at least $120 million (3x) to hit his or her MINIMUM return target his or her investor’s are expecting. So money spent should add equity value or create IP that eventually will.
Both Sides of the Table
JUNE 5, 2015
” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. In the old days VCs funded off of a “pre-money” valuation. Option pool (likely dilution in the future, which is a function of a higher price just not yet defined).
Startup Professionals Musings
JANUARY 27, 2012
The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” The pre-money valuation is company value today, while the post-money valuation is the pre-money valuation plus the investment amount. Define equity type.
Startup Professionals Musings
SEPTEMBER 14, 2010
The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” The pre-money valuation is company value today, while the post-money valuation is the pre-money valuation plus the investment amount. Define equity type.
Both Sides of the Table
SEPTEMBER 18, 2014
If you’re wildly successful early on or if they help you achieve a great valuation they actually pay a significant price for their eventual stock even though they took much more risk than a future investor and backed you early. Me: More dilution? “But lawyers will charge much more for equity.” Him: Not so good.
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