VC Cafe
OCTOBER 31, 2022
TVPI = total value to paid in capital (paper gains) DPI = distributed to paid-in capital (real cash gains, paid out). For founders that don’t have product market fit or are close to profitability, it might be a tough market to raise capital in. The grey lines ( TVPI ) have never been higher relative to blue lines ( DPI ).
Both Sides of the Table
JULY 22, 2010
Things like “ participating preferred stock &# in legalese unsurprisingly never actually call out, “hey, this is the participating preferred language.&# We got a3x participating liquidation preference with interest (not participating with a 3x cap, but 3x participating. 4 * $4 million) and not $4 million.
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Agile VC
APRIL 17, 2011
Kayak was started here in my backyard of Boston… co-founder & CTO Paul English and the product/engineering team is based here in Concord MA. Distribution revenue is CPC and CPA. . Kayak generates both distribution (i.e. 5) High Productivity: Kayak had 148 employees at the end of 2010.
The Equity Kicker
OCTOBER 22, 2012
Good examples include Zappos’s legendary customer service, Steve Jobs’s almost maniacal obsession with great product design, and, as many of us were saying in Dublin at the weekend, the way Paddy and his team worked hard to make every element of the F.ounders experience top notch.
Life Beyond Code
SEPTEMBER 27, 2011
Thus, I have come to the conclusion that if I could help a million entrepreneurs globally reach $1 million in revenue (and beyond), that would be the foundation of a robust, distributed, and sustainable economic value creation that would add up to a trillion dollars in global GDP. a distributed, democratic model of capitalism.
Scott Edward Walker
DECEMBER 13, 2018
An acquihire is essentially the acquisition of a startup for its talent/team (rather than for its products or services). Accordingly, the deal may be a mere fiction designed to get funds into the startup to be distributed to its investors. What is an Acquihire? Will the Founders Receive any Purchase Price Proceeds?
abovethecrowd.com
APRIL 20, 2016
If you really want to liberate your own common shares and those of your employees, then you want to convert the preferred to common and remove both the control and the liquidation preference over your shares. Cash distributions are what matter at the end of the day, bug big paper gains still make for good fundraising pitches.
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