Seeing Both Sides

AUGUST 28, 2017

Instead I will make a few observations about how an investor might think about the impact of ICOs / token launches on the venture capital industry, in particular, and some of the downstream ramifications that need to wrestled with. Need for growth capital. Shift of value from equity holders to token holders.

Early Stage 20

Early Stage Equity Venture Capital Government 20

Startup Professionals Musings

JANUARY 27, 2012

Define equity type. The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold. Anti-dilution protection. But some dilution is almost inevitable. But the lead Angel would certainly ask to be given a seat. Right of first refusal.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 223

The Next Web

OCTOBER 3, 2012

It can be very tempting to take in a little bit of seed capital, and start to operate as if you’re a big company. Note: I’m not talking about equity. Growing Too Fast : This is, I think, the biggest killer of post-funding startups. And consider this: when your company is three people (e.g.

Cofounder 155

Cofounder Technical Cofounder Technical Review Software Review 155

Startup Professionals Musings

SEPTEMBER 14, 2010

Define equity type. The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold. Anti-dilution protection. But some dilution is almost inevitable. But the lead angel would certainly ask to be given a seat. Right of first refusal.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Gust

OCTOBER 17, 2011

Define equity type. The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold. Anti-dilution protection. But some dilution is almost inevitable. But the lead angel would certainly ask to be given a seat. Right of first refusal.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

Haystack

AUGUST 18, 2019

.” 2/ Lateral Competition – The number of “seed” funds has also grown during this boon. More and more seed capital has flooded into the market, making the situation for funding seed rounds ~$2M-ish total size more competitive. Samir Kaji from First Republic has been writing on this for years.

Seed Stage 108

Seed Stage Cap Table Early Stage Malaysia 108

Feld Thoughts

JULY 14, 2015

A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. Here’s the scenario. ” They are running out of money.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Austin Startup

APRIL 28, 2019

I put that in quotations, because, as I’ll expound, there is a start-up industrial complex that is designed to fleece novice founders from their seed capital with predatory fees, terms, etc. Some accelerators take equity in exchange for providing services like desk space, credit on cloud services, or “free” consulting.

Incubator 50

Incubator Equity Programming Cloud 50

maplebutter.com

JANUARY 8, 2013

Ideally you can pay them based + equity so that you’ll get their attention and focus on the project. Dan, I have a startup www.hispanoenamerica.com that we just launched two weeks ago, I have clawed my way to this point and we are at the point where we need some capital to invest in our marketing and execution. Can’t pick just one.

Technical Review 44

Technical Review Startup Cofounder Software Review 44