Both Sides of the Table
JULY 25, 2011
To this day I’m still surprised how few CEOs really understand the differences between 2x liquidation preference and a liquidation preference with a 2x cap. Or what “participating preferred&# stock is and how it can screw you. Or what “flat spots&# on a cap table are.
Both Sides of the Table
MARCH 1, 2016
In bad markets, they can be wiped out by recaps and liquidation preferences unless they save enough reserves to protect their positions. The full presentation can be downloaded on SlideShare or viewed below. In good scenarios, they don’t have funds large enough to follow their winners.
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The Equity Kicker
JANUARY 18, 2013
She wants to see you present a confident and convincing story about how you are going to build a big business. What on earth does this termsheet mean with it’s liquidation preferences, anti-dilution and protective provisions? These are my best guess at those to five frustrations and our one to two sentence response.
Tim Keane
JANUARY 12, 2010
Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react. Now that I’m more often on the other side of the term-sheet, I’ve tried to present term-sheets to entrepreneurs accompanied by a philosophical explanation of what I’m proposing, and why. First , dividends.
Startup Professionals Musings
JANUARY 27, 2012
It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Liquidation preference. Entrepreneurs sometimes assume an initial agreement with an Angel is a commitment, so they start spending before any money is received.
Startup Professionals Musings
SEPTEMBER 14, 2010
It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Liquidation preference. Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received.
ithacaVC
JUNE 29, 2018
This typically results when the company has raised a lot of money and the preferred stock liquidation preference would absorb an out sized portion of the exit proceeds. The second ( Liquidity_Bonus_Plan_-_Board_Meeting_Slides ) is a power point presentation that a startup board might review when adopting a plan.
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