Feld Thoughts

APRIL 29, 2015

Now that everyone is overly focused on unicorns, the headline number on the valuation (e.g. Company X raised Y at a valuation of Z from A, B, and C) has crept into the story on big rounds. in Funding: Here is the Valuation, Term Sheet and Why We’re Doing It. It’s what the press likes to write about (e.g.

Atlanta 70

Atlanta Valuation Term Sheet Finance 70

Feld Thoughts

FEBRUARY 9, 2016

There are three things that will mess you up in the long run: Too much liquidation preference : My simple rule of thumb is that if you’ve raised more than $25m and your liquidation preference is greater than 50% of your post money valuation, you have too much liquidation preference.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Feld Thoughts

FEBRUARY 25, 2016

As more and more investors showed up, valuations increased, and time to close a deal shortened, there was little tolerance for a retrade, so they disappeared. As we are now about five months into a broad market reset, both for public and private market valuations, the retrade has reappeared in private investments.

Term Sheet 70

Term Sheet Reputation Valuation Acquisition 70

Feld Thoughts

SEPTEMBER 9, 2015

“We basically doubled the number of unicorns in the past year and a half,” says Aileen Lee, the founder of Cowboy Ventures, who has herself become a mythic creature in the Valley after coining the term. But a lot of these are paper unicorns, so their valuations may not be real for a while.” Let me say it a different way.

Liquidation Preference 70

Liquidation Preference Burn Rate Balance Sheet .Net 70

Feld Thoughts

FEBRUARY 28, 2023

Since the attractiveness of investments is also largely related to exit channels, this aspect affects the availability of capital and company valuation at every stage. The tax framework and valuation issues are particularly complex and not very employee-friendly. BAND) and the Bundesverband Deutsche Startups e.V.

Germany 165

Germany Liquidation Preference Option Pool Advisory Board 165

Feld Thoughts

JUNE 2, 2015

If the entrepreneur knows this and is using it proactively so they get a higher post-money valuation, that’s fair game. There are also some law firms whose standard documents are purposefully ambiguous to give the entrepreneur theoretical negotiating flexibility in the first priced round.

Liquidation Preference 70

Liquidation Preference Cap Table Angel Investor Post-Money Valuation 70

Feld Thoughts

JULY 14, 2015

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. The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless. Sure – it happens.

Pre-Money Valuation 70

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

Feld Thoughts

SEPTEMBER 10, 2015

There is also a huge amount of seed capital available from seed funds. if the valuation goes above $3m pre it’s too late for me). But generally the pool of angel investors is increasing and the prolific ones who have a strategy ( such as the angel strategy I advocate ) seem to be keeping a steady pace.

Angel Investor 70

Angel Investor Seed Capital Valuation Demand 70