Both Sides of the Table

JANUARY 21, 2010

Shame about not getting it in legal writing that you owned the original IP. Consider it a sales & marketing expense for them. They usually ask for warrants (basically like a stock option) in exchange for taking a deferred fee. You need to know how liquidations preferences work. Disclosure: he’s my cousin.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Gust

SEPTEMBER 17, 2014

Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. Cashflow projections? I’m not sure. I see that all the time.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153