Remove Management Remove Pre-Money Valuation Remove Seed Capital Remove Syndication
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The Silliness Of Recapping Seed Rounds

Feld Thoughts

The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless. The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company. So they recapitalize the company.