Both Sides of the Table

JULY 22, 2010

Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. I turned them down. They were nonplussed.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Both Sides of the Table

MARCH 1, 2016

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. However, they have been sending VCs far more investment checks in the last ten years than they’ve gotten back as distributions.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Agile VC

APRIL 17, 2011

Last week ZipCar began trading and has a market cap of about $1 billion. Distribution revenue is CPC and CPA. . Historically more revenue came from distribution/lead-gen (57% in 2007), but this tipped in 2008 though appears to be steady from 2009 to 2010 at about 58% advertising and 42% distribution.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Tim Keane

JANUARY 12, 2010

Bottom Up Market Sizing » January 12, 2010. Term-sheets and Valuations: Thinking about Negotiations. The Valuation Question. When companies seeking their first round of serious funding are good enough to receive a term-sheet from an investor, the first issue that always arises is valuation.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

ithacaVC

DECEMBER 14, 2011

Continuing with the “No Mess” theme of commenting on things that give VCs pause, I thought it would be good to touch on liquidation preference. Specifically, “too much” liquidation preference (I will use “LP” for liquidation preference). It might be.

Liquidation Preference 49

Liquidation Preference LP Preferred Stock Liquidity Event 49

Up and Running

MAY 21, 2015

All the other sharks typically make a traditional equity investment; for example they’ll invest $100,000 at a $1,000,000 business valuation, and take 10 percent of the business. They generally also get additional rights that common shareholders don’t get, such as anti-dilution protection, and liquidation preference (discussed further below).

Covenant 60

Covenant Liquidation Preference Ratchet Dilution 60

VC Cafe

OCTOBER 31, 2022

This is largely due to several major stock market crashes and global economic uncertainties. This is not meant to be a negative post, but rather a temperature check of today’s market environment and the levers founders can pull on to survive this period. It’s an investors market. billion in 538 deals.

Founder 173

Founder Technical Review Down Round Liquidation Preference 173