Cofounder Conversion Dilution Pre-Money Valuation 
Both Sides of the Table
FEBRUARY 25, 2010
million at a $15 million pre-money valuation. But we weren’t optimizing for dilution – we were building a $1 billion+ company and we wanted the runway to succeed. We had people hearing through the grapevine that we were about to raise money and new investors started calling us to get in on the deal.
Both Sides of the Table
JUNE 5, 2015
I am reminded of this problem every time my firm does a financing where a note went before us but more specifically I was reminded by this great post by Brad Feld to talk about the pre-money vs. post-money conversion issue. In the old days VCs funded off of a “pre-money” valuation.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Hunter Walker
AUGUST 7, 2017
Employee options pools, typically created at the point of financings, shouldn’t be treated as haggling over dilution, but rather a strategic resource that will help founders build the best team and, by extension, a more valuable company.
Both Sides of the Table
MAY 30, 2018
What was the post money on your last round (and how much capital have you raised)? It’s not uncommon for a VC to ask you how much capital you’ve raised and what the post-money valuation was on your last round. If a VC prices a flat or down round it means that management teams are often taking too much dilution.
The Startup Lawyer
FEBRUARY 4, 2011
But before your startup signs up and cashes that $[XX,000] check, your startup’s co-founders should sit down and evaluate the incubator’s offer. The following are some issues to consider and actions to take before accepting an incubator’s offer: (1) Calculate Valuation and Determine Value.
Feld Thoughts
JULY 29, 2011
Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.
thestartuplawyer.com
FEBRUARY 24, 2010
He obviously never launched a startup and got shafted by a co-founder. He obviously never launched a startup and got shafted by a co-founder. He obviously never launched a startup and got shafted by a co-founder. You can start by examining every aspect of the co-founder relationship.
Expert insights. Personalized for you.
301 
Let's personalize your content