Scott Edward Walker

JULY 20, 2011

They understandably get excited as soon as some money is waved at them and often allow themselves to get drawn into the dealmaker’s web. This is particularly important where there will be an ongoing relationship post-closing, such as in a venture capital financing or private equity acquisition.

Private Equity 78

Private Equity Liquidation Preference Option Pool Entrepreneur 78

www.readwriteweb.com

DECEMBER 29, 2011

While certainly not every business needs to raise venture financing, it is the path for many high-growth technology startups. It's not just a best-of list, it's also a collection of posts that examine the fundamental issues that continue to shape the Web. Happy holidays from Team ReadWriteWeb! Tip 1: Make Sure You Are Ready to Scale.

Cap Table 47

Cap Table Term Sheet Liquidation Preference Technical Review 47

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

Both Sides of the Table

SEPTEMBER 6, 2010

I was thumbing through Twitter messages on my Blackberry on Monday (I use Twitter as a “ mobile first, web second &# product) when I saw the following Tweet (see graphic). You also understand that there are future financing rounds and in tough times this can change the value equation of stocks.

Stock Options 294

Stock Options Stock Valuation Liquidation Preference 294

abovethecrowd.com

MAY 20, 2013

There are common stock, common options, and as many as three to five different layers of preferred stock, each with a specific liquidation preference. Basically, everyone uses loose finance arguments to over-inflate their own company’s valuation so that they can demand a bigger slice of the pie of the new company.

Merger 53

Merger Institutional Investors Liquidation Preference Preferred Stock 53

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

abovethecrowd.com

FEBRUARY 24, 2015

Historically, different financial institutions specialized in different stages, because the assessment of risk and opportunity was considered unique at each stage — for example, a seed investor was unlikely to do late-stage financing, and vice versa. These liquidation preferences give the investor a debt-like downside protection.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40