Scott Edward Walker

JULY 20, 2011

This is particularly important where there will be an ongoing relationship post-closing, such as in a venture capital financing or private equity acquisition. You will need to work with the guys on the other side of the table post-closing, perhaps for a number of years.

Private Equity 78

Private Equity Liquidation Preference Option Pool Entrepreneur 78

Pascal's View

JULY 9, 2017

When it comes time to convert the notes, these entrepreneurs face ‘sticker shock’ about their post-financing ownership. They do not recognize that they may have already contractually sold a meaningful portion of equity in their company. That’s only one result of mismanaged expectations dating back to when the notes were issued!

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing. Start-up | Mondays. Technology | Thursdays. Franchises.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Tim Keane

JANUARY 12, 2010

  I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] and walked through each proposed term and why it is or isn’t important.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Professor VC

JANUARY 17, 2008

If my math is correct, this is approximately a 31% IRR, which has to beat individual angel investments on aggregate and venture capital returns over the period of the study (1990-2007). He then went on to say that this type of financing was good for the entrepreneur (vs taking VC money) because they got to keep more of the company.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Feld Thoughts

FEBRUARY 28, 2023

Corporate law: In Germany, most companies in general and most VC-financed companies are structured in the legal form of a “Gesellschaft mit beschränkter Haftung” (GmbH). Often, this integration results in VC-financed GmbH companies having little to do with the GmbH as envisaged by the law. German Startups Association).

Germany 165

Germany Liquidation Preference Option Pool Advisory Board 165

Seeing Both Sides

JULY 15, 2009

VCs have an unfair advantage when it comes to financings. A typical start-up company will do 2-4 venture capital financings before a successful exit (or, conversely, an ignomious ending). In the world of VC-backed financings, there are multiple terms that impact the ultimate price of the deal. What is the promote?

Pre-Money Valuation 49

Pre-Money Valuation Option Pool Stock Options Post-Money Valuation 49