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Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First

Both Sides of the Table

That means that the likely have a minimum of $15 million in liquidation preferences. It will usually be higher because the liquidation preference has a dividend so if the deal is long in the tooth assume that the liquidation preference might be $20-22 million. Take liquidation preferences head on.

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Selling your company for less than expected?

Berkonomics

Does the board declare dividends upon the preferred stock invested in order to increase the amount paid out to the preferred – at the expense of the common – shareholders, which usually includes the founder(s)? This raises the bar for venture capitalists in a marginal sale of a business.

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Killer articles on startups

A Smart Bear: Startups and Marketing for Geeks

Great basic guide on VC / Startup liquidation preferences: [link]. Beware the trappings of liquidation preference | VentureBeat. How we collect first impression feedback from our new users by sending a simple welcome email - [link]. Aug 16, 2010 at 6:15am. Oct 13, 2009 at 10:36am.

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How to Work with Lawyers at a Startup

Both Sides of the Table

You have this perception that they’re billing you for the lunch meeting they invited you to and the friendly banter emails flying back and forth. You need to know how liquidations preferences work. How to manage costs - One of the biggest frustrations that people have with lawyers are unexpected costs.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

.   At the financial level , and assuming a harvest of the investment in the company without the need for further financing, two terms stand out as driving economics: the dividend and the liquidation preference. Second a liquidation preference and a participation.   First , dividends.

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Working for Equity Instead of Cash

genylabs.typepad.com

where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have. Name and email address are required. Email address will not be displayed with the comment.). Please enter a valid email address. what kind of stock you are getting. Invalid URL.

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Don’t be greedy even if you have the power.

Berkonomics

Does the board declare dividends upon the preferred stock invested in order to increase the amount paid out to the preferred – at the expense of the common – shareholders, which usually includes the founder(s)? This raises the bar for venture capitalists in a marginal sale of a business.