Both Sides of the Table

DECEMBER 11, 2022

Something happened in the past 7 years in the startup and venture capital world that I hadn’t experienced since the late 90’s — we all began praying to the God of Valuation. How might our next phase of the journey seem brighter, even with more uncertain days for startups and capital markets? What happened? There was no money train.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Both Sides of the Table

FEBRUARY 15, 2016

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. Even if you sold for $20 million they’d be thinking “I have senior liquidation preference so I get my money back.”). They may push you to cut costs.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

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

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success.   At the financial level , and assuming a harvest of the investment in the company without the need for further financing, two terms stand out as driving economics: the dividend and the liquidation preference. Second a liquidation preference and a participation.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

K9 Ventures

JUNE 5, 2015

In addition, the competition for and the cost of hiring people, especially in the San Francisco Bay Area, has gone up dramatically. So while the infrastructure cost and startup costs may have declined, the operating costs have increased. Well, enter the Pre-Seed round, where the startup raises closer to $500K.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Growthink Blog

MAY 23, 2011

Technical progress and market traction are much slower and cost a lot more than anticipated. It is driven by the following: • The Best Metric for the Health of a Company is Cash Flow. There are a lot of dark, hard days. There is considerable internal debate around whether or not to solicit and/or accept outside venture capital.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Both Sides of the Table

MARCH 3, 2013

Let me start by saying that Clayton is one of the most influential people on my thoughts about markets that led to both the concept behind my first startup and my main theses in investing. Startup Grind was a truly awesome conference and Derek the consumate host. Watch the 30-minute interview to hear why but summary notes below.

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403