Remove Conversion Remove Employee Remove Ratchet
article thumbnail

Down Rounds: Deal With Reality

Feld Thoughts

I like the quote she pulled out of me in our conversation. But if you can do a clean financing at a lower price, I always think that’s a better option for everyone (founders, employees, and existing investors.). I don’t respond to many interview requests these days, but I’ll always talk to her.

article thumbnail

Bad Notes on Venture Capital

Both Sides of the Table

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. Me: I know.

Insiders

Sign Up for our Newsletter

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

Trending Sources

article thumbnail

Bad Notes on VC

Gust

Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. These are all real conversations. At an accelerator ….

article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Especially in situations where the founders have a large position and are key employees, it is not uncommon for investors to request that they agree to have some portion of their holdings vest on a schedule.

article thumbnail

Fear is the mind-killer

Startup Lessons Learned

He summarized that conversation well, so rather than re-tread that material, Ill quote it here: One thing that I was surprised to learn was that IMVU started out with continuous deployment. As the product matured, they were able to ratchet up the quality to prevent regression on features that had been truly embraced by their customers.

article thumbnail

Thriving In A World Of Constant Change

Duct Tape Marketing

Success story features Q & A sessions with successful business leaders, keynote presentations, conversations on sales marketing. And that makes a lot of people nervous and anxious and uncertainty just ratchets up your portfolio is yours forever. It's one of the most useful podcasts in the world. April Rinne (14:19): That was easy.

article thumbnail

What to do when you get screwed

The Startup Toolkit

Employees can blackmail or extort you. Investors can delay until you’re desperate and then ratchet the terms. I was once made to read a book called Crucial Conversations by a girl I was dating, which I’m sure was some sort of hint. It’s not just cofounders. Partners can break their contracts.