Both Sides of the Table
JULY 22, 2010
Things like “ participating preferred stock &# in legalese unsurprisingly never actually call out, “hey, this is the participating preferred language.&# We got a3x participating liquidation preference with interest (not participating with a 3x cap, but 3x participating. I turned them down.
Both Sides of the Table
SEPTEMBER 5, 2012
When convertible debt first started being introduced as a “faster, cheaper way to get startups funded” they didn’t have pricing built into them. In fact, most early investor work hard to help their startups get to the next level so it makes no sense for the angel investor and founders to be at odds.
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Up and Running
SEPTEMBER 20, 2021
Since almost all startups do not possess traditional debt lenders, the list usually consists of data of the shareholders and the percentage they own. Furthermore, there are various forms of equity, such as preferred stock, common stock, and convertible notes, which influence the present and potential future investors.
Agile VC
APRIL 17, 2011
AGILEVC My idle thoughts on tech startups. liquidation preference, 6% accumulated dividend. Pre-money valuation was initially set higher but was adjusted to match the Ser B valuation. Series B Preferred. liquidation preference, 6% accumulated dividend (1). Pre-money valuation was approx.
Both Sides of the Table
SEPTEMBER 8, 2012
I recently wrote about my views that startups rounds should be priced. Here is what I recommend very often – privately – to startup entrepreneurs for angel funding. We plan to raise at a $5 million pre-money valuation. million pre-money. They might have all of their money smoked.
Lightspeed Venture Partners
OCTOBER 7, 2012
Week three’s breakdown covered topics like how hard momentum is to turn around, and how participating preferred stock works. As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today. BACK 9 DIPS.
ithacaVC
APRIL 25, 2014
This cap table can be used by a pre-funded startup and then a financing can be layered in. In other words, it shows both pre-money and post-money very clearly. For example, cell E2 is the spot to put in the negotiated pre-money valuation. Dealing with VCs Management Startup Life'
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