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. He’s fine with equity provided it’s cheap to paper it legally. Photo credit: D. Blanchard/O’Reilly Media.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Both Sides of the Table

FEBRUARY 23, 2015

He wants a chance at changing life’s circumstances with building equity value that might free him and his family from the rat-race of 529 accounts, property taxes, summer-school tuitions and even spending some cash on aging parents. There is often money to be made in finding places with under-valued IP. He still has the dream.

Technical Review 150

Technical Review Liquidation Preference Silicon Valley IP 150

Both Sides of the Table

JANUARY 21, 2010

You never got around to agreeing exact equity splits but you had many conversations about it. Shame about not getting it in legal writing that you owned the original IP. But if you can stomach that he’s a star and contingency work / risk sharing on IP claims is key! Disclosure: he’s my cousin.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Both Sides of the Table

OCTOBER 17, 2019

Defensible IP When I’m asked by newer, younger VC partners for advice on our sector, one of the things I always emphasize is looking for companies who have built defensible intellectual property (IP). Defensible IP becomes insanely valuable?—?particularly Over the past 2.5 particularly as you achieve scale.

IP 223

IP Intellectual Property IRR Cofounder 223

Both Sides of the Table

SEPTEMBER 28, 2014

So money spent should add equity value or create IP that eventually will. 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.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

SEPTEMBER 18, 2014

“But lawyers will charge much more for equity.” Try doing THAT with equity. If you want to give them a 33% discount you offer them half of a $1 common-stock warrant for every $1 share they purchase. And so forth. ” Not in my experience. Lawyers don’t make money on your seed round in any instance. Employment.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Both Sides of the Table

APRIL 25, 2011

The founders could reinvest this in growth (0% tax, focus on future equity growth) or take the profits of $12 million and divide amongst the founding partners. You own the IP you create. My advice wasn’t to shut down all product / IP initiatives but rather to be clear on their purpose and how to monetize them.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332