While they could both go without salaries for a year, Dick had no extra money to invest in the business. Jane and Dick had several options, including structuring this as a debt transaction where Jane simply loaned the money to the company, or as convertible debt transaction where Jane’s investment would convert into equity in the next round. MORE >>

2: As expected at least one person accused me of writing this post because I want to see lower valuations. It’s the one bit of advice I find myself giving most frequently these days, “raise money at the top end of normal.&#. As the risks below get eliminated the higher the valuation investors are prepared to pay. MORE >>

The liquidation preference means what is sounds - namely that preferred stock holders with this right get all of their money back (i.e. I get the same question a lot from entrepreneurs raising equity capital (venture capital or angel funding). The question is whether they need to issue common or preferred stock. read more. MORE >>

You give a startup money and they give you stock. Youllprobably get either preferred stock, which means stock with extrarights like getting your money back first in a sale, or convertibledebt, which means (on paper) youre lending the company money, andthe debt converts to stock at the next sufficiently big fundinground. MORE >>

Pre Quora – AVC & Answers OnStartups. For me this dates back to pre-Internet days of bulletin boards, CompuServe , Prodigy and the like. Let’s face it, you give out money for a living so if you can write well you’re always bound to have a big following (me: um, thanks, I guess). really understand it. MORE >>