article thumbnail

Using warrants to pump up your VC valuation

www.mattbartus.com

Interesting strategy, although I don't know if it justifies the added risk of having a flat (or down) round next time you go to raise. Interesting strategy, although I don't know if it justifies the added risk of having a flat (or down) round next time you go to raise. Intellectual Property (5).

Warrant 40
article thumbnail

Why is there such a large founder to early employee equity drop-off? - Quora

www.quora.com

1 vote by Marc Bodnick Intellectual property + cash + cash equivalent investments such as. Even if your company succeeds, there is absolutely no guarantee your equity will not be wiped out in a down round. more) Sign up for free to read the full text. Login if you already have an account. This answer.

Equity 40
article thumbnail

How to Fund a Startup

www.paulgraham.com

Due diligence is the corporateequivalent of a background check: the purpose is to uncover anyhidden bombs that might sink the company later, like serious designflaws in the product, pending lawsuits against the company,intellectual property issues, and so on.