Both Sides of the Table

SEPTEMBER 5, 2012

Because convertible debt deals often have both a ‘full ratchet’ and often have ‘multiple liquidation preferences’ “ Yup. The key for entrepreneurs to understand is whether it’s a “full ratchet” or a “weighted average ratchet.” Convertible notes have full ratchets.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

VC Cafe

OCTOBER 31, 2022

The numbers for the first nine months of 2022 show the extent of the slowdown in almost all parts of the Israeli tech economy, except in early-stage. The later the stage, the bigger the impact. In Q3/2022, $2.6 billion were raised in 143 deals. Israeli tech review Q3 2022, IVC Online and Bank Leumi. What is a founder to do?

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

www.seriesseed.com

DECEMBER 9, 2012

I hesitate to use a quote from one of the greatest people ever to grace planet earth, and certainly the question of how to structure early stage investment is a laughable cause as compared to the rights that Ghandi (also a lawyer) fought to advance.  I’ve attached version 2.0 I read through the docs, well done.

Term Sheet 40

Term Sheet Ratchet Dilution Equity 40

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.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

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. At an accelerator …. My colleague: Whoa. Actually not.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Tim Keane

JANUARY 12, 2010

  A cumulative dividend can get to be very expensive and is not often a feature in early stage terms.   It is very expensive if you’re the entrepreneur since it doubles the cost to the company of paying dividends to the entrepreneur.   I’ve never seen it in practice.   I’ve never seen it in practice.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Up and Running

MAY 13, 2015

Other links: The Time to Think About the 3D-Printed Future is Now (HBR), Space Station Builds 3D-Printed Ratchet Wrench (NASA), Shapeways.com (3D printing marketplace). Noah describes this as this idea of like if you’re early stage you need some money to get off the ground. You have some costs at the banana stand?

Business Plan 60

Business Plan Marketing Oregon Small Business 60