Both Sides of the Table

DECEMBER 11, 2022

Almost no financings, many VCs and tech startups cratered for the second time in less than a decade following the dot com bursting. This era was dominated by a ZIRP (zero interest rate policy) of the federal reserve and easy money in search of high yields and encouraging growth at all costs. The tide has gone out.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Tim Keane

JANUARY 12, 2010

For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors. Second a liquidation preference and a participation.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

genylabs.typepad.com

SEPTEMBER 24, 2011

I wont bother going into details on start-up financing terms ( see this post for an overview of typical VC terms) except to say if you dont know and understand: the firms cap table and valuation. where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have.

Equity 40

Equity Technical Review San Jose Stock 40

SoCal CTO

JULY 13, 2010

How-to learn about angel/vc term sheets - Gabriel Weinberg , June 28, 2010 I think every startup entrepreneur (and angel investor) should have a good understanding of financing term sheets. liquidation preference. Will you negotiate million dollars rounds of financing with cool VCs? Yes, even bootstrappers.

Cofounder 175

Cofounder Technical Cofounder Term Sheet Startup 175

www.mattbartus.com

DECEMBER 9, 2012

I just worked on a financing for a company that received a term sheet from a group of VCs at a $7 million pre-money valuation. I've just seen many startups unhealthily focus on the valuation versus things such as the liquidation preference or board control. Search site Archive Select Month November 2012 (1).

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

dondodge.typepad.com

JANUARY 15, 2011

It isnt always possible to have a competitive bidding situation at each financing round so here are some guidelines for funding sources and percentages. Friends & Family can usually raise between $30K and $300K and usually take an interest bearing note that is convertible into stock at the next financing. 5% Managers -.25%

Equity 40

Equity Employee Dilution Valuation 40

Both Sides of the Table

FEBRUARY 14, 2016

In the case of venture funding that shift was massive amounts of non-VC capital in search of higher returns and emulating the successes of Facebook, LinkedIn, Twitter plus the expectation of huge returns at Uber, Airbnb, Dropbox, etc. Why Financing in Falling Markets is So Damn Difficult. And so it goes. Back to my non-VC example.

Valuation 150

Valuation Down Round Startup Later Stage 150