article thumbnail

Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

Only 7% of the search queries are performed by users referred by search engines, meaning Kayak’s brand is very strong and they continue to build it ($39M spent in 2010 on brand advertising, nearly $92M in total marketing spend). liquidation preference, 6% accumulated dividend (1). Series A-1 Preferred.

article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Seeds Have Changed: An Epilogue to The New Venture Landscape

K9 Ventures

Almost two years ago, in a private/closed meeting with K9 Ventures’ LPs only, I claimed that: What was being referred to in the press as the “Series A Crunch” was not because fewer Series A deals were being done, but because there were too many Seed deals being done. The risk here is what I refer to as the curse of over-capitalization.

article thumbnail

How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

The primary rights in these documents, ranked in order of importance in my opinion are: Non-participating preferred liquidation preference. The liquidation preference would not apply in this situation, and any distribution to stockholders would trigger the dividend preference. under $500K).

Finance 70
article thumbnail

A first-time founder’s guide to term sheets: Equity investments, continued

The Next Web

For a general introduction to term sheets and the trade-off between high valuation and complex investment structure, please refer to the introductory post to the guide. The terms Liquidation preference: a very important clause… This story continues at The Next Web. Entrepreneur Analysis and Opinion'

article thumbnail

Using warrants to pump up your VC valuation

www.mattbartus.com

Home About Matt Client references Contact. How to pump up your VC valuation. Let’s say you receive a term sheet for a $1 million investment at a $3 million fully diluted pre-money valuation, and you’re kind of disappointed. One possibility is to negotiate a higher valuation and offer warrants (i.e.,

Warrant 40
article thumbnail

Convertible Note Seed Financings: Econ 101 for Founders

Scott Edward Walker

This part 2 will address the economics of a convertible note seed financing and the three key economic terms: (i) the conversion discount, (ii) the conversion valuation cap and (iii) the interest rate. What is a Conversion Valuation Cap? and (iii) what are the advantages of issuing convertible notes?