Both Sides of the Table

JUNE 5, 2011

I wrote this because over the last decade I’ve seen a destructive cycle where otherwise interesting companies have been screwed by raising too much money at too high of prices and gotten caught in a trap when the markets correct and they got ahead of themselves. There is an inherent value that any company has.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

The Startup Lawyer

FEBRUARY 13, 2012

Conversely, if you are raising a small convertible note round (sub $100k), then a couple extra interest points may not be that material. The purpose of interest in a convertible note is to appreciate the time value of money — not to pay the investor interest with his or her investment money.

Preferred Stock 73

Preferred Stock Dividend Equity Stock 73

ConversionXL

NOVEMBER 25, 2015

Look up the Time Value of Money. While there is no magic number, Weber’s law shows that it is approximately 10% where customers begin to become aggravated. But you’re going to do the research anyway, of course. Annual Pricing Plans. Every subscription product should offer an annual plan.

Product 48

Product Retention Revenue Acquisition 48

This is going to be BIG.

FEBRUARY 9, 2015

They should understand concepts like profitability, contribution margin, time value of money, opportunity cost, etc--so they can help anchor the conversation around high impact financial opportunities and cost effective ways to take advantage of them.

Venture Capital 60

Venture Capital Time Value of Money Finance Cost 60