The Equity Kicker
NOVEMBER 9, 2016
I just read a New York Times article that led with the sentence “Deep inside a Silicon Valley unicorn lurks a time bomb”. It turns out that ‘time bomb’ is the much maligned and, I suspect, little understood, liquidation preference. For these reasons our investments at Forward Partners are always in ordinary shares.
Agile VC
APRIL 17, 2011
liquidation preference, 6% accumulated dividend (1). Series A-1 Preferred. liquidation preference, 6% accumulated dividend. Series B Preferred. liquidation preference, 6% accumulated dividend (1). Series B-1 Preferred. liquidation preference, 6% accumulated dividend (1).
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Both Sides of the Table
FEBRUARY 23, 2015
There is a second set of career discussions I have even more frequently than my “angel yourself” advice but this type is almost never discussed publicly in blogs, which tend to emphasize only billion-dollar opportunities, 20-something technical founders and Silicon Valley elitism. the standard 4-6% for a hired-gun CEO).
Both Sides of the Table
MARCH 1, 2016
And while there is a narrative that most LPs only want to invest in the long-standing Silicon Valley brands that have existed for the past 40 years, there is evidence that many LPs understand that it is possible for new entrants in our industry to stake out grounds of differentiation. The data itself bears out some of these fears.
Both Sides of the Table
JANUARY 21, 2010
Right sized : I tried to work with one of the best known firms in Silicon Valley. He’s totally tapped into the startup communities in Silicon Valley and a bit in LA. You need to know how liquidations preferences work. I know Mike Lincoln in Washington DC does. You need to own your legal agreements.
Both Sides of the Table
SEPTEMBER 16, 2010
As I’ve highlighted I believe we’re in a unique period similar to 2005-08 where the biggest tech firms of Silicon Valley (and some media companies) are scooping up small software companies as “talent acquisitions&# versus accretive revenue / profit generators. So know that going in.
Both Sides of the Table
SEPTEMBER 2, 2009
I took money with a 3x participating preferred liquidation preference with 8% compounded interest annually. Coupled with my participating preferred from 1999 and 2000 I had more than $55 million of liquidation preferences. I’m assuming this in Silicon Valley, LA or similar locations.
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