Both Sides of the Table

MARCH 3, 2013

He believes that one of the financial metrics taught at business schools and reinforced by Wall Street has accelerated offshoring of industries. We talked about Liquidation Preference, Voting Rights, and all of the other valuable terms crowd-funding investors don’t understand. Neither does Clayton.

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

Feld Thoughts

SEPTEMBER 9, 2015

We basically doubled the number of unicorns in the past year and a half,” says Aileen Lee, the founder of Cowboy Ventures, who has herself become a mythic creature in the Valley after coining the term. If private capital is no longer available in the future, these companies will seek a public offering or acquisition.

Liquidation Preference 70

Liquidation Preference Burn Rate Balance Sheet .Net 70

Tim Keane

JANUARY 12, 2010

.   At the financial level , and assuming a harvest of the investment in the company without the need for further financing, two terms stand out as driving economics: the dividend and the liquidation preference. Second a liquidation preference and a participation.   First , dividends.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Board Effect

MAY 10, 2019

Cap tables list a company’s authorized and outstanding shares, the parties to which those shares have been assigned, and the various metrics relevant to managing them. Such metrics can include an investor’s liquidation preference, option exercise windows and expiry dates, and shareholders’ fully diluted ownership percentages.

Cap Table 40

Cap Table Liquidation Preference Dilution Liquidity Event 40

abovethecrowd.com

APRIL 20, 2016

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. Anything that hints of a down round brings questions about the success metrics that have already been “booked.”

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Growthink Blog

MAY 23, 2011

Usually unbeknownst to all, the decision around pursuing or accepting a venture capital round will be the most important factor in determining the investment return for the founder and the original angel investors in the company. It is driven by the following: • The Best Metric for the Health of a Company is Cash Flow.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

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. 3) Investor/Founder Mindset Challenges. Most founders and investors typically think about their personal stakes in a private company in terms of “ownership percentage.”

Merger 53

Merger Institutional Investors Liquidation Preference Preferred Stock 53

K9 Ventures

OCTOBER 19, 2015

Note: If you’re a founder, stop reading this post now. I like to think of it as looking at the derivative (in a mathematical sense, not a financial sense) is often more revealing than looking at the raw change in a metric. If you build a good company, investors will hunt you down. ” .

Venture Capital 48

Venture Capital Liquidation Preference Valuation Portfolio 48