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. As I’m generally a believer in ‘pricing rounds’ I initially didn’t agree with the premise of the post. Photo credit: D.
Both Sides of the Table
SEPTEMBER 28, 2014
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. So money spent should add equity value or create IP that eventually will.
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Both Sides of the Table
JUNE 5, 2015
” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. In the old days VCs funded off of a “pre-money” valuation. Inexperienced VCs get caught in the pre-money vs. post-money trap. Size of my check.
Both Sides of the Table
SEPTEMBER 18, 2014
If you’re wildly successful early on or if they help you achieve a great valuation they actually pay a significant price for their eventual stock even though they took much more risk than a future investor and backed you early. “But lawyers will charge much more for equity.” Try doing THAT with equity.
Gust
SEPTEMBER 17, 2014
If you’re wildly successful early on or if they help you achieve a great valuation they actually pay a significant price for their eventual stock even though they took much more risk than a future investor and backed you early. But lawyers will charge much more for equity.” Lawyers don’t make money on your seed round in any instance.
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