Both Sides of the Table
DECEMBER 11, 2022
Sure, we built SaaS products before the term even existed but at 31 it was hard to delineate reality from what all of the monied people around us were telling us what we were worth. In those years I learned to properly build product, price products, sell products and serve customers. Until we weren’t.
Both Sides of the Table
JULY 22, 2010
Things like “ participating preferred stock &# in legalese unsurprisingly never actually call out, “hey, this is the participating preferred language.&# We got a3x participating liquidation preference with interest (not participating with a 3x cap, but 3x participating. 4 * $4 million) and not $4 million.
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Agile VC
APRIL 17, 2011
Kayak was started here in my backyard of Boston… co-founder & CTO Paul English and the product/engineering team is based here in Concord MA. 5) High Productivity: Kayak had 148 employees at the end of 2010. liquidation preference, 6% accumulated dividend (1). Series A-1 Preferred. Series B Preferred.
Steve Blank
MARCH 16, 2016
But startups require money upfront for product development and later to scale. For the first few years, your VCs want you to keep your head down, build the product, find product/market fit and ship to get to some inflection point (revenue, users, etc.). But there’s only one reason your company got funded. ——-.
Both Sides of the Table
FEBRUARY 23, 2015
But if you’re the Director or Product or VP of Marketing – you don’t get to make that decision. This is because this “liquidation preference” gets returned to investors before you see any money – restricting the executive outcomes in mid-sized exits. the standard 4-6% for a hired-gun CEO).
The Equity Kicker
OCTOBER 22, 2012
Good examples include Zappos’s legendary customer service, Steve Jobs’s almost maniacal obsession with great product design, and, as many of us were saying in Dublin at the weekend, the way Paddy and his team worked hard to make every element of the F.ounders experience top notch.
Both Sides of the Table
MAY 13, 2013
If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. (If That’s why liquidation preferences exist – downside protection. Almost certainly the startup would have raised some capital.
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