Feld Thoughts
JUNE 10, 2022
Rather, when you have a choice between a financing at a lower valuation and a financing with all kinds of crazy structure to try to maintain a previous valuation, negotiate the best price you can but do a clean financing with no structure. and a bunch of other things. and a bunch of other things.
Professor VC
APRIL 1, 2010
One comment made by Jason was that angels tend to be less sensitive than VCs on valuation and can potentially make it difficult to get a venture financing done at acceptable valuation. This will both reduce the number of angel investors and make it more difficult to syndicate across stage lines. Dumb Money - Are we as dumb as we look?
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Professor VC
JULY 25, 2013
In investment parlance, it strictly means that new classes of stock have equal rights with prior classes in terms of liquidation preference, voting rights, etc. Another area where I''m not sure I stand is with some of the more formal referral and syndication programs that are emerging now.
Austin Startup
AUGUST 1, 2017
TL;DR: In a market that has historically idolized huge, splashy financings and exits, an increasing number of entrepreneurs are realizing that everyone else’s definition of success — particularly among certain large VCs — isn’t necessarily aligned with their own. And large checks require very large exits to achieve good returns.
Feld Thoughts
JULY 14, 2015
Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. A company raises $1m of seed money from angels in a convertible note with a $6m cap. The company spends the $1m building and launching their first product.
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