Both Sides of the Table

SEPTEMBER 28, 2013

A cautious person wouldn’t try to pry people out of Twitter right before their IPO to” join my cause!!” Good press and industry mojo wasn’t enough to overcome the financial metrics of the business and the offers came in at more like $10 million. Dilution / valuation. It was not. I wasn’t surprised.

Startup 417

Startup Dilution San Diego Stock Options 417

Both Sides of the Table

SEPTEMBER 18, 2014

There were no metrics. Him: On metrics. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. Less than you’ll probably grant your most junior employees in stock options? Me: More dilution? Maybe an IPO – who knows? Your A round? Objectively.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Startup Lessons Learned

JULY 5, 2010

I used to give copies of Four Steps out to my employees, in the hopes that it would instantly indoctrinate them into the methodology of Customer Development. Brant and Patrick undertook a difficult challenge: to provide a generally accessible introduction to Customer Development, without diluting its impact or dumbing-down its principles.

Customer Development 166

Customer Development Developer San Francisco Customer 166

Tim Keane

JANUARY 12, 2010

Next, they carefully consider the range of multiples being used today to value companies being acquired or doing IPOs in the market that the business is in.   A full ratchet anti-dilution clause is very unfriendly to entrepreneurs; it requires them to make up the entire difference in price from their own holdings.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Lessons Learned

OCTOBER 26, 2009

Every two months, the company would have a big end-of-milestone meeting, with our Board of Directors, Business Advisory Board, and all employees present. Every time you listen to customers, you fear diluting your vision. Every time you listen to customers, you fear diluting your vision. That’s natural.

Advisory Board 151

Advisory Board Customer San Francisco Lean 151

Gust

SEPTEMBER 17, 2014

There were no metrics. Him: On metrics. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. Less than you’ll probably grant your most junior employees in stock options? Me: More dilution? Maybe an IPO – who knows? So a convertible note was easier.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

abovethecrowd.com

APRIL 20, 2016

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. In 1999, record valuations coexisted with record IPOs and shareholder liquidity. 2015 was the exact opposite.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40