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Praying to the God of Valuation

Both Sides of the Table

There were startups and a software industry but barely. They wanted to build new products, solve problems that were unfilled by the last generation of software companies and grow revenue year-over-year while holding costs in check. There was no money train. It was 1991. We still loved every moment. The tide has gone out.

Valuation 466
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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

Kayak Software Corporation. 3) ITA Relationship: Much has been made of the fact that Kayak along with OTAs (online travel agents) license data from ITA Software which is now part of Google. liquidation preference, 6% accumulated dividend (1). Series A-1 Preferred. liquidation preference, 6% accumulated dividend.

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What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking

Steve Blank

If you’re building enterprise software, the list may be larger. As part of the deal you signed with your investors was a term specifying the Liquidation Preference. The liquidation preference determines how the pie is split between you and your investors when there is a liquidity event.

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Angel Investing 4 – Why You Need Deep Pockets to Win Big

Both Sides of the Table

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.

Cap Table 283
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Killer articles on startups

A Smart Bear: Startups and Marketing for Geeks

6 Simple Selling Tips For Software Entrepreneurs [link] (from OnStartups). 6 Simple Selling Tips For Software Entrepreneurs. 6 simple tips for selling more software. Pricing a breakthrough product - Business of Software Blog. Great basic guide on VC / Startup liquidation preferences: [link]. NeilDavidson.

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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

When you ask yourself how Uber became the powerhouse it is – in addition to great software & operations and the right innovation at the right time – it was also the fact that they knew how to constantly tap the capital markets to grow the business, making it harder for many competitors to do so.

Burn Rate 150
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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

The primary rights in these documents, ranked in order of importance in my opinion are: Non-participating preferred liquidation preference. The liquidation preference would not apply in this situation, and any distribution to stockholders would trigger the dividend preference. Dividend preference.

Finance 70