Both Sides of the Table
DECEMBER 11, 2022
In those years I learned to properly build product, price products, sell products and serve customers. If they are private we still have fig leaves that cover us because some rounds might raise debt vs. equity or might fund with terms like multiple liquidation preferences or full-ratchets or convertible notes with caps.
Agile VC
APRIL 17, 2011
paying for travel data from ITA or others (customers acquisition spend is not included in COGS). liquidation preference, 6% accumulated dividend (1). Series A-1 Preferred. liquidation preference, 6% accumulated dividend. Series B Preferred. liquidation preference, 6% accumulated dividend (1).
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Steve Blank
MARCH 16, 2016
Congratulations, welcome to Customer Discovery. Treat potential acquirers like a customer segment. Again, this is basic Customer Discovery. As part of the deal you signed with your investors was a term specifying the Liquidation Preference. Do not obsess over liquidity. How will you figure this out?
Both Sides of the Table
FEBRUARY 23, 2015
Even when you do sign-up initial customers it’s still not clear that your company will be a success and you’re still likely paying yourself under market rates. In Ian’s post he rightly points out that stepping into a role with $15 million in paid-in capital that has already been spent can be a problem.
The Equity Kicker
OCTOBER 22, 2012
That’s exciting and motivating for founders, and makes it easier to enlist support for your mission from investors, new employees and customers and will get you talked about on blogs and at cocktail parties. Much like Apple has worked on every element of the customer experience from retail stores to packaging (with the exception of iTunes….)
Both Sides of the Table
MAY 13, 2013
And they might give a premium if the team has been around a longer period of time, has built some hard-to-build proprietary technology or has some customer traction. If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. (If
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. What the entrepreneurs were really saying is, “I don’t want to take a lower valuation now, while I don’t have customers or a full team. That’s right.
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