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 Pre-Money Valuation + Preferred Stock
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13 articles |
| Page 1 of 1 | Previous | Next | THE STARTUP LAWYER JANUARY 10, 2012 Avoid Offensive Liquidation Preferences In most equity financing rounds, an investor will ask for (and get) a term called a liquidation preference. liquidation preference is the amount that must be paid to a preferred stock holder before any sale proceeds may be paid to the holders of common stock (i.e., Preferred Stock | | | | | | |
| THE STARTUP LAWYER JUNE 22, 2010 The Convertible Note Discount Price Cap For this article, let’s assume this equity is the Series A Preferred Stock purchased by a venture capital fund. For example, if a venture capital fund purchases Series A Preferred Stock at $1.00 per share, the discount may allow the angel investor to purchase the same Series A Preferred Stock at $0.75 | ASK THE VC SEPTEMBER 20, 2011 Convertible Debt – Valuation Caps Today, in our series on convertible debt, we examine the conversion valuation cap. The valuation cap is typically only seen in seed rounds where the investors are concerned that the next round of financing will be at a price that is at a valuation that wouldn’t reward them appropriately for taking a risk by investing early in the seed round. | | THE STARTUP LAWYER FEBRUARY 4, 2011 How to Evaluate an Offer from a Startup Incubator The following are some issues to consider and actions to take before accepting an incubator’s offer: (1) Calculate Valuation and Determine Value. Pre-money valuations startups receive from incubators are typically low…really low. Great news — your startup just got accepted to an incubator! Conclusion. | | | | | | | |
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WWW.PAULGRAHAM.COM | WEDNESDAY, APRIL 28, 2010 How to Be an Angel Investor
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 >> -
WWW.PAULGRAHAM.COM | WEDNESDAY, APRIL 28, 2010 How to Fund a Startup
typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. At Viaweb we got our first $10,000 ofseed money from our friend Julian, but he was sufficiently richthat its hard to say whether he should be classified as a friendor angel. MORE >> -
ASK THE VC | MONDAY, JULY 25, 2011 Series A Warrants Based On Milestones Versus A Deal With Two Closes
Question: In a Series A, the investor is proposing a preferred stock with warrants. It sounds like the proposal is a “ Preferred A&# with a “warrant&# for more “ Preferred A&# at a price that is 50% more than the initial price. Let’s assume a post- money valuation of $4m. Got that? MORE >> -
BOTH SIDES OF THE TABLE | WEDNESDAY, APRIL 14, 2010  Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First
I learned all of this myself on your side of the table raising money at my first company. Many companies that are raising B or C venture capital rounds right now raised their initial money in 2005-2008. That means that they likely raised money at a particularly high price relative to 2010 prices. Clean up your own shite. MORE >> -
THESTARTUPLAWYER.COM | WEDNESDAY, FEBRUARY 24, 2010 Why Co-Founders Are a Startup's Biggest Liability | The Startup Lawyer
Because now you have more to lose than just a company and your (or someone else’s) money. Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM He obviously never launched a startup and got shafted by a co-founder. MORE >>
- When In Doubt on Pre-Money Valuation, Smart Guys Procrastinate RECENT BUZZES - VC EXPERTS, INC. | WEDNESDAY, AUGUST 3, 2011
- Fenwick & West - Internet/Digital Media and Software Industries Silicon Valley and Seattle 2010 RECENT BUZZES - VC EXPERTS, INC. | WEDNESDAY, APRIL 13, 2011
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