Both Sides of the Table

SEPTEMBER 25, 2010

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. “A startup could also give better deals to investors they expected to help them most&# – That is a quote from Paul on the “high resolution financing&# post.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Both Sides of the Table

JANUARY 5, 2010

If your idea is so amazing that it warrants my hard-earned angel money or the money of my LP investors from our fund then why should I take a risk on you if you won’t take a risk on yourself? VCs don’t have the same net worth litmus test and great entrepreneurs have a ton of sources for seed money to get financed very early.

Entrepreneur 293

Entrepreneur CTO Hire South America Salary 293

Both Sides of the Table

SEPTEMBER 18, 2014

It’s like we need a finance 101 course for entrepreneurs. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. If you want to give them a 33% discount you offer them half of a $1 common-stock warrant for every $1 share they purchase.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

David Teten

JANUARY 19, 2021

Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” Lenders sometimes take warrants. Further reading: The Evolution of Entrepreneurial Finance: A New Typology. Repayment schedule.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Up and Running

SEPTEMBER 26, 2016

For startups and high-growth businesses, as you scale and encounter new milestones and obstacles, you will be faced with the question of how to finance and plan for that growth. Luckily for founders, the ways in which you can finance your startup are varied based on your business model, your preference, your goals, and timeline, and so on.

Covenant 60

Covenant Institutional Investors Balance Sheet Warrant 60

Gust

SEPTEMBER 17, 2014

It’s like we need a finance 101 course for entrepreneurs. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Austin Startup

AUGUST 20, 2017

Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services. Messy cap tables can come back to haunt you when you do a financing or sell the company. If you’ve got patent or other IP needs, you may want to engage specialists in those areas.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48