Both Sides of the Table

SEPTEMBER 18, 2014

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. Your A round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.   Pre-bubble Siliicon Valley deals were popularly valued at multiples of revenue. This is why a bottom up approach is more credible.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Gust

SEPTEMBER 17, 2014

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. Revenue multiple? These are all real conversations.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

The Startup Toolkit

JANUARY 10, 2017

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. Does it matter?

Cofounder 20

Cofounder Technical Review Vesting Ratchet 20