Preferred Stock Reputation Startup Valuation 
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.
ReadWriteStart
JUNE 1, 2020
I have often been asked about Startup Funding by entrepreneurs. Many myths surround the subject of startup funding. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. You must have seen a lot of startups giving out promotions, discounts, and incentives at the early phase of their business. Debt investors.
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Steve Blank
APRIL 26, 2022
At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. Some even insisted that all prior preferred stock had to be converted to common stock. This article previously appeared in TechCrunch. They’re Back.
www.paulgraham.com
APRIL 28, 2010
Want to start a startup? A 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. Few startups get it quite right. 1 ] A startups life will be more complicated, legally, if any of theinvestors arent accredited.
www.vccafe.com
MARCH 11, 2013
Startup Resources (Updated Mar 2013). Venture Capital Cafe > Startup Resources (Updated Mar 2013). VC & Startup Resources. Seed Startups. VC Cafe covers early stage Israeli and European tech & mobile startups. Hundreds of startups featured since 2005, will yours be next? About VC Cafe.
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. What the entrepreneurs were really saying is, “I don’t want to take a lower valuation now, while I don’t have customers or a full team.
Both Sides of the Table
APRIL 14, 2010
In straight preferences the investors only get this money in a “downside&# scenario as protection that they get their money back if your company isn’t successful. I wouldn’t work in this business long if I had a reputation for screwing over other investors to get a deal. Reputation. So what happens?
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