article thumbnail

Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

Andrew Krowne and I recently co-wrote an article in Tech Crunch , Why SAFE Notes Are Not Safe for Entrepreneurs. This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. But it is also a topic that many find esoteric and difficult to grasp.

article thumbnail

Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

Kayak was started here in my backyard of Boston… co-founder & CTO Paul English and the product/engineering team is based here in Concord MA. Co-founder & CEO Steve Hafner and the business team are based in Norwalk, CT. Post-money valuation probably no higher than $12M (2). Read More ยป.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What is it Like to Negotiate a VC Round?

Both Sides of the Table

” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. In the old days VCs funded off of a “pre-moneyvaluation. About 4 years ago I started pricing all of my deals as a function of “post money valuation.”

article thumbnail

The Silliness Of Recapping Seed Rounds

Feld Thoughts

A company raises $1m of seed money from angels in a convertible note with a $6m cap. 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. Here’s the scenario.

article thumbnail

Guy Kawasakiโ€™s 10 Questions to Ask Before You Join a Startup

www.mint.com

What is the post-money valuation of your last round? Post-money valuationโ€ is the value of the company after the last round of money was put in (again, lines of credit and promises donโ€™t count). But you should beware of boards that are only the founders and their family and friends.