Both Sides of the Table

FEBRUARY 15, 2016

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital. Only you know.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

genylabs.typepad.com

SEPTEMBER 24, 2011

Tracking and Forecasting the Trends Impacting the Future of Small Business. Small Business Labs, from Emergent Research , covers the key social, technology and business trends impacting small business. 2010 Top 10 Small Business Trends. Small Business Trends. where your stock sits in the liquidity preference stack.

Equity 40

Equity Technical Review San Jose Stock 40

Scott Edward Walker

APRIL 22, 2012

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?

Pre-Money Valuation 72

Pre-Money Valuation Finance Liquidation Preference Founder 72

www.readwriteweb.com

DECEMBER 29, 2011

We hope you enjoy reading them again and we look forward to bringing you more Web products and trends analysis in 2012. This includes things like how liquidation preferences impact future rounds and ultimate liquidity, to why VCs ask to expand an option pool before investing as part of their term sheet.

Cap Table 47

Cap Table Term Sheet Liquidation Preference Technical Review 47

VC Cafe

OCTOBER 31, 2022

But even in the seed market the bar could get higher: I wouldn’t be surprised to see valuations drop and for VCs to have rising expectations about the level of traction they expect to see before funding. The figure is below the heights of 2021 and early 2022 but above historical averages—representing a durable, positive trend in the industry.

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

VC Adventure

AUGUST 30, 2010

It’s an interesting data point on Y-Combinator companies, but is this truly a macro trend? First a quick terminology recap (skip this paragraph if you’re already familiar with convertible debt vs. preferred equity). The most common forms of investment in early stage business are convertible debt and preferred equity.

Angel Investor 103

Angel Investor Early Stage Equity Valuation 103

Startup Company Lawyer

JANUARY 9, 2011

Convertible debt with a price cap seems to be the preferred structure for early-stage financings. Over the last 12 months, I’ve noticed a trend where early-stage startup companies raise seed financings of between $250K and $1M using a convertible note with a price cap.

Liquidation Preference 57

Liquidation Preference Finance Preferred Stock Common Stock 57