Both Sides of the Table

MARCH 1, 2016

While there is much discussion about VCs starting to pull back on their investments into startups, the LPs we surveyed don’t expect to slow the pace of investment into VC funds themselves – at least for the foreseeable future. That’s money that fuels our startup ecosystems.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

K9 Ventures

JUNE 5, 2015

Almost two years ago, in a private/closed meeting with K9 Ventures’ LPs only, I claimed that: What was being referred to in the press as the “Series A Crunch” was not because fewer Series A deals were being done, but because there were too many Seed deals being done. Seed stage was super tough.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Both Sides of the Table

SEPTEMBER 5, 2012

Because convertible debt deals often have both a ‘full ratchet’ and often have ‘multiple liquidation preferences’ “ Yup. When convertible debt first started being introduced as a “faster, cheaper way to get startups funded” they didn’t have pricing built into them.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

Startup Company Lawyer

MARCH 14, 2010

In addition, I think that a “peace treaty&# between early-stage investors and startup companies on standard terms (at least at a term sheet level) is a step in the right direction. The primary rights in these documents, ranked in order of importance in my opinion are: Non-participating preferred liquidation preference.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

K9 Ventures

MARCH 23, 2011

There has been a lot of noise in the Valley lately about how most seed stage deals are now being done as convertible notes. It is in essence equivalent to being a Liquidation Preference that is typically seen in a preferred equity financing. That might well be so, but I for one am not a fan of convertible notes.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

dondodge.typepad.com

JANUARY 15, 2011

Entrepreneurs face some pretty tough questions at a very early stage. How much equity should I grant to early employees? Dont worry about giving up too much equity at an early stage. This puts potential payout into perspective for those thinking about founding or working for a startup. it Founder conundrum.

Equity 40

Equity Employee Dilution Valuation 40

K9 Ventures

OCTOBER 19, 2015

It should be clear from the first element that the process has to begin with investors who are unusually perceptive, unconventional, iconoclastic or early. ” Seeing something others don’t see is critical to early stage investing. ” That right there summarizes how I/K9 got into investing in hardware early.

Venture Capital 48

Venture Capital Liquidation Preference Valuation Portfolio 48