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. TVPI = total value to paid in capital (paper gains) DPI = distributed to paid-in capital (real cash gains, paid out).

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

Startup Lessons Learned

SEPTEMBER 12, 2013

And the urgency stems not from an agile competitor, a first-mover market, or a power-law distribution of reward, but rather from the need to achieve enough velocity to overcome the tremendous gravitational pull of business-as-usual. In my case, the scarce resources, rather than time and money, are time and political capital.

Lean 162

Lean Startup Ratchet New York City 162

Tim Keane

JANUARY 12, 2010

  A cumulative dividend can get to be very expensive and is not often a feature in early stage terms. A liquidation preference means that the investors receive their investment back (plus dividends) prior to a distribution of the proceeds to stockholders.   I’ve never seen it in practice.   Why is this fair?

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. Jonathan: Yeah.

Business Plan 60

Business Plan Marketing Oregon Small Business 60

abovethecrowd.com

APRIL 20, 2016

Examples of dirty terms include guaranteed IPO returns, ratchets, PIK Dividends, series-based M&A vetoes, and superior preferences or liquidity rights. The reason these terms can produce returns by themselves is that they set the stage for a rejiggering of the capitalization table at some point in the future.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40