Both Sides of the Table

JULY 23, 2014

pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. I highlighted how these tectonic technical shifts have altered the VC industry in this post: How Open-Source & Horizontal Computing Spawned the Micro VC Market. 2007 was the watershed year.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

K9 Ventures

MARCH 23, 2011

Let’s say the company raises $1M ($900K in new money, plus the $100K for the note, just to keep the math simple) at a pre-money valuation of exactly $1M (assume at $1 per share) – same as the pre-money cap in the note. What percent of the company should the note holder get on conversion?

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

www.paulgraham.com

OCTOBER 23, 2010

But this is just the kindthat tends to be open source: operating systems, programminglanguages, editors, and so on. So if youre developing technologyfor money, youre probably not going to be developing it for peoplelike you. Ididnt realize that when we were raising money. Thereis no rational way.

Startup 105

Startup Cofounder Software Stock 105