Agile VC
APRIL 17, 2011
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. Series B-1 Preferred.
Professor VC
JANUARY 17, 2008
One of my comments was that we would likely see more institutionalization of angel groups and syndication of deals among groups. One of the panelists mentioned that they have gotten very valuation sensitive (nothing wrong with that) and like to purchase preferred stock rather than invest in convertible notes.
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www.paulgraham.com
APRIL 28, 2010
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. [
www.paulgraham.com
APRIL 28, 2010
Startups valuations aresupposed to rise over time. So if youre going to sell cheap stockto eminent angels, do it early, when its natural for the companyto have a low valuation. Some angel investors join together in syndicates. Any city wherepeople start startups will have one or more of them. So theyre going to raise $200,000.
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