YoungUpstarts

SEPTEMBER 20, 2019

As well as how to work with pre and post-money valuations. Your Reputation is on the Line. Though if you have a reputation giving bad deals, you may not have anyone to negotiate with in the future. It’s often more all about fearing how tough VCs are going to be with their term sheets and ‘standard’ clauses.

Technical Cofounder 127

Technical Cofounder Entrepreneur Cofounder Post-Money Valuation 127

Both Sides of the Table

JULY 22, 2010

I don’t feel that as a VC sneaking in nefarious terms into a term sheet that the entrepreneur doesn’t understand is a good way to build a long-term relationship nor to build a long-term reputation but this does happen and more frequently than we all would like.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Feld Thoughts

JULY 14, 2015

A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. So they recapitalize the company.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70