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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

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. As I’m generally a believer in ‘pricing rounds’ I initially didn’t agree with the premise of the post. Photo credit: D. and not a min.

Finance 286
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The Authoritative Guide to Prorata Rights

Both Sides of the Table

Prorata rights are one of the most important rights of a private market technology investors and yet are seldom fully understood. New investors sometimes want early investors to put in money to “prove” they have confidence in the new price. Because tech companies are getting bigger more quickly than at any time in history.

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Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

I’ve been writing up reviews of this season’s Shark Tank pitches from a silicon valley VCs perspective. Doing the research to form your own view of a company’s prospects is called due diligence. So the entrepreneur was willing to accept a valuation more than $10M lower than a previous valuation.

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Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

Andrew Krowne and I recently co-wrote an article in Tech Crunch , Why SAFE Notes Are Not Safe for Entrepreneurs. This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. But it is also a topic that many find esoteric and difficult to grasp.

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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. That’s the deal you get when you’re raising in a good market for startup financing.

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Guy Kawasaki’s 10 Questions to Ask Before You Join a Startup

www.mint.com

What is the post-money valuation of your last round? Post-money valuation” is the value of the company after the last round of money was put in (again, lines of credit and promises don’t count). Check out the personal finance topic by clicking here. So easy on the eyes!