View from Seed
OCTOBER 21, 2014
Using NextView as an example, since we both seek to lead the seed round and only lead during this round, I’ve seen this trend manifest in one of two ways: In a priced round, the entrepreneur will often share their valuation ask (or a stated floor) for the pre-money valuation of their company much sooner in the process.
Startup Professionals Musings
JANUARY 27, 2012
It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” Seat on the board. Anti-dilution protection.
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Startup Professionals Musings
SEPTEMBER 14, 2010
It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” Seat on the board. Anti-dilution protection.
Genuine VC
JULY 30, 2012
By communicating pricing expectations with potential lead investors, I mean sharing either an “ask” or even stated floor for the pre-money valuation of the company (with a priced preferred round) or explicitly stating a valuation cap (for convertible note round).
Gust
OCTOBER 17, 2011
It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” Seat on the board. Anti-dilution protection.
Gust
OCTOBER 21, 2011
In Parts II and III, we looked at commonly used mandatory and voluntary conversion language in convertible notes. To account for scenarios in which the startup is acquired before it has a chance to complete a priced equity financing round, most term sheets and deal documents contain a “ change in control ” provision.
Gust
OCTOBER 5, 2011
In case it isn’t clear by now, angel investors aren’t in the business of making risky early stage investments in order to earn 6% interest on their money, or even 10%— the upside is all in conversion to equity—so the interest rate isn’t a major point of negotiation. This paragraph is the heart of the whole deal.
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