Both Sides of the Table

DECEMBER 11, 2022

Something happened in the past 7 years in the startup and venture capital world that I hadn’t experienced since the late 90’s — we all began praying to the God of Valuation. A LOOK BACK I started my career as a programmer. Nobody cared about our valuations any more. What happened? Until we weren’t.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Both Sides of the Table

SEPTEMBER 6, 2010

We set our sites on our IPO price and then worked back to our current valuation and showed potential employees what we thought they could earn (with all legal caveats) if the company was successful. There’s a difference between companies wanting to hide valuations and investors doing so. I prefer percentages (e.g.

Stock Options 294

Stock Options Stock Valuation Liquidation Preference 294

Both Sides of the Table

SEPTEMBER 28, 2013

Now you’ve got to convince your peer group to quit their respectable jobs and career arcs and join you. The don’t understand VC liquidation preferences or multiple return expectations. Dilution / valuation. But so far this is the easy bit. You take the meeting but you’re not really pursuing it.

Startup 417

Startup Dilution San Diego Stock Options 417

Both Sides of the Table

NOVEMBER 4, 2009

I often have career discussions with entrepreneurs – both young and more mature – whether they should join company “X&# or not. Let’s assume that the company raised it at a normal VC valuation, which means it gave up 33% of the company and thus $5 million / 33% = $15 million post-money valuation.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Up and Running

MARCH 29, 2017

He reminded us that with our newfound knowledge and degree, our careers had a solid baseline. With that baseline, the way to maximize the expected value of our careers was to increase their volatility. Though term sheets are generally non-binding, you want to understand what you’re agreeing to, beyond just valuation and amount raised.

Term Sheet 60

Term Sheet Venture Capital Liquidation Preference Valuation 60