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Praying to the God of Valuation

Both Sides of the Table

The browser and thus the WWW and the first Internet businesses were born circa 1994–95 and there was a golden period where anything seemed possible. I have often thought that creative endeavors where one has a quick turn-around between idea and realization of one’s work as one of the more fulfilling experiences in life. It was 1991.

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Investors Beware: Today’s $100M+ Late-stage Private Rounds Are Very Different from an IPO

abovethecrowd.com

Most private company financings involve the use of preferred stock with liquidation preferences. These liquidation preferences give the investor a debt-like downside protection. In going public, all preferred shares are converted to common shares, and the pile of liquidation preferences goes away.

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Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

This is nothing new; long favored by family-controlled media empires such as Rupert Murdoch’s News Corporation , among Internet firms alone, Google took a dual-class approach when going public in 2004.

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New Plain Preferred Term Sheet

www.founderinstitute.com

Fred Wilson, Chris Dixon, and others in the debate agree to a dramatically simplified term sheet with some significant changes against the norm : - The elimination of participation , which has become a common request since the Internet bubble burst.

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Killer articles on startups

A Smart Bear: Startups and Marketing for Geeks

This is meant to be relatively industry-agnostic and focuses primarily on online components of the business (meaning, it may not apply to businesses which avoid the Internet for whatever reason. Great basic guide on VC / Startup liquidation preferences: [link]. Beware the trappings of liquidation preference | VentureBeat.

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In 15 Years From Now Half of US Universities May Be in Bankruptcy. My Surprise Discussion with @ClayChristensen

Both Sides of the Table

Obviously that barrier has been brought down with low-cost ability to capture, stream and distribute content over the Internet. We talked about Liquidation Preference, Voting Rights, and all of the other valuable terms crowd-funding investors don’t understand. “Online education is truly going to kill us.”

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Working for Equity Instead of Cash

genylabs.typepad.com

Interest in this waned when the Internet bust resulted in most tech start-up equity becoming worthless, but it seems to be coming back. where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have. what kind of stock you are getting. what your rights are.

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