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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

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.

Valuation 405
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One Book Every Entrepreneur and VC Should Own

Both Sides of the Table

To this day I’m still surprised how few CEOs really understand the differences between 2x liquidation preference and a liquidation preference with a 2x cap. Or what “participating preferred&# stock is and how it can screw you. This series inspired me to start my blog as a VC.

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Get Funded/50 Questions you should ask before raising venture capital – the journey from a series of blog posts to a book

The Equity Kicker

Regular readers will be well aware that through 2011 and into early 2012 Nicholas Lovell and I were writing a series of 50 blog posts designed to help entrepreneurs with the fundraising process, and that we intended to publish them in book format once we were finished.

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Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

Week three’s breakdown covered topics like how hard momentum is to turn around, and how participating preferred stock works. If you like this, follow us on twitter at @lightspeedvp.com and subscribe to our blog at [link] to get the rest of the seasons’ breakdown. BACK 9 DIPS. But I’d love your thoughts and comments.

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Sustainable startup growth and venture capital

The Equity Kicker

I’ve written a lot on this blog about two aspects of fundamentals – great product and strong unit economics – but less about stakeholder alignment. They are hoping the ‘bigger fools’ will step out and we can all get back to focusing on fundamentals.

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No Mess (Too Much Liquidation Preference)

ithacaVC

Nothing better than sitting at LGA writing blog posts. Continuing with the “No Mess” theme of commenting on things that give VCs pause, I thought it would be good to touch on liquidation preference. I know……living on the edge.

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Shark Tank Season 4 episode 3 breakdown

Lightspeed Venture Partners

These are typically called “ participating preferred ” structures, and are quite uncommon in West Coast VC deals these days, although they were once more common a couple of decades ago, and are still seen in some East Coast deals. I’d love your thoughts and comments.