VC Cafe

OCTOBER 31, 2022

TVPI = total value to paid in capital (paper gains) DPI = distributed to paid-in capital (real cash gains, paid out). Reduce burn, keep on shipping and focus on sales efficiency. The grey lines ( TVPI ) have never been higher relative to blue lines ( DPI ). The Orange line represents a 2x DPI average (most funds target a min of 3x).

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

Up and Running

MAY 21, 2015

The version of “anti-dilution protection” that most benefits outside investors is commonly called a “full ratchet.” As a middle ground on the “anti-dilution clause” you should be pushing for what’s called a “partial ratchet.” As the small business owner, the goal is just to understand how to negotiate the clause to serve you best.

Covenant 60

Covenant Liquidation Preference Ratchet Dilution 60

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). Peter: Let’s go on to what I think most people not necessarily try to avoid, but maybe feel like is a little daunting, which is the sales and marketing section.

Business Plan 60

Business Plan Marketing Oregon Small Business 60

Tim Keane

JANUARY 12, 2010

It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet. This results in a range of sale prices; in this example from $118.6MM to $21MM. Let’s start at the end.   So, let’s assume here we have an 8% non-cumulative dividend.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Lessons Learned

SEPTEMBER 12, 2013

We’ve just put a new batch of tickets on sale, and when this one sells out, the price goes up, so sign up now. 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.

Lean 162

Lean Startup Ratchet New York City 162

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. Cash distributions are what matter at the end of the day, bug big paper gains still make for good fundraising pitches.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40