Both Sides of the Table

MAY 13, 2013

And they might give a premium if the team has been around a longer period of time, has built some hard-to-build proprietary technology or has some customer traction. 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

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

www.founderinstitute.com

MARCH 2, 2010

The only science and technology-focused comprehensive university located between Philadelphia and Pittsburgh, Harrisburg University’s academic mission is to create, to attract and to expand economic opportunities in the region. A 1x liquidation preference , versus a 1x to 3x range in recent deals reported on TheFunded.com.

Term Sheet 40

Term Sheet Liquidation Preference Vesting San Diego 40

Feld Thoughts

FEBRUARY 9, 2016

Once again, as we find ourselves in the middle of a significant public market correction, especially around technology stocks, there’s an enormous amount of noise in the system, as there always is. I suffered through the next financing after implementing a complex structure, or a sale of the company, or a liquidation.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Altgate

DECEMBER 15, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← No one wants to tell you your baby is ugly More on Liquidation Preferences → Pre-Money Valuation vs Number of Founders Posted on December 15, 2010 by admin Here’s a chart of the day worth sharing.

Pre-Money Valuation 66

Pre-Money Valuation Valuation Cofounder Founder 66

A Smart Bear: Startups and Marketing for Geeks

SEPTEMBER 8, 2010

Thoughts on marketing, technology commercialization and Silicon Valley startups by a high tech executive. Great basic guide on VC / Startup liquidation preferences: [link]. Beware the trappings of liquidation preference | VentureBeat. Thrice Around the Block: The Growth Mystique: A Silicon Valley Parable.

Liquidation Preference 216

Liquidation Preference Silicon Valley Startup Software 216

Both Sides of the Table

JANUARY 21, 2010

When to get a lawyer - If you plan to be a venture or angel backed technology company (what I mostly write about) the best time to start meeting and getting to know lawyers is long before you ever start your company. You need to know how liquidations preferences work. Many people start companies arse backwards.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

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

www.readwriteweb.com

DECEMBER 29, 2011

While certainly not every business needs to raise venture financing, it is the path for many high-growth technology startups. Therefore, going down the fundraising path is something many technology entrepreneurs will need to do and is a critical step in the development of their business.

Cap Table 47

Cap Table Term Sheet Liquidation Preference Technical Review 47

Altgate

OCTOBER 8, 2009

Raising Capital: 5 Reasons Convertible Debt Sucks HOT The Collapse of the VC Ecosystem & What It Will Look Like Post Recovery 10 Tips On Negotiating With VCs Dating…er…Fundraising Etiquette The Science & Art of Term Sheet Negotiation HOT How Liquidation Preferences Work HOT How Much Money Should I Raise?

Term Sheet 39

Term Sheet Technical Review Michigan Liquidation Preference 39

Altgate

JANUARY 5, 2009

Share and Enjoy: This entry was posted in Current Affairs , Entrepreneurship , Green Business , Management , Startups , Technology , Venture Capital , Venture Debt and tagged top posts. Tips: $75 Killver VC Pitch Deck Not much to learn here. That’s actually about what I would have guessed had I not seen the Google Analytics numbers.

Technical Review 28

Technical Review Due Diligence Term Sheet Liquidation Preference 28

genylabs.typepad.com

SEPTEMBER 24, 2011

Small Business Labs, from Emergent Research , covers the key social, technology and business trends impacting small business. where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have. Wall Street Journal: With New Technology, Start-Ups Go Lean.

Equity 40

Equity Technical Review San Jose Stock 40

David Teten

AUGUST 21, 2019

Borchers points out: “Only 50% of our investment activity involves technology-based businesses. There is a huge universe of compelling, growth-focused companies that operate outside of the technology world, and they sometimes don’t get the attention that they deserve from institutional venture equity investors.” .

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

The Equity Kicker

DECEMBER 30, 2013

but she will most likely now be sitting behind a $25m liquidation preference and have taken on new investors who want to exit the company for at least $240m (to get 3x on their investment).

Finance 129

Finance Liquidation Preference Valuation Harvest 129

Both Sides of the Table

NOVEMBER 4, 2009

BTW, this ignores liquidation preferences which actually mean you’ll earn less. So when the Stanford MBA, the ex senior technology developer or the former Chief Revenue Officer of a company is calling me and asking my advice on their next gig you can see why I start with “are you ready to earn or to learn?

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Both Sides of the Table

SEPTEMBER 28, 2013

Have the breakthrough technology. The don’t understand VC liquidation preferences or multiple return expectations. Are tacking. A $1 trillion global market. It’s inefficient. To change things. We just need your $500,000!!” ” A startup CEO’s job is to absorb stress so the team doesn’t have to.

Startup 417

Startup Dilution San Diego Stock Options 417

Altgate

DECEMBER 16, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← More on Liquidation Preferences Happy Holidays → Where Do Tech VCs Invest? 11% of deals were Cleantech and most of those were early stage. Bookmark the permalink. — Topsy.com [.]

Liquidation Preference 59

Liquidation Preference Early Stage Venture Capital Later Stage 59

Growthink Blog

MAY 23, 2011

Through connections, or through a chance meeting at a networking or social event, an angel investor hears the entrepreneur's story, likes them and their technology, and on the spot, writes a check to provide the company with its first outside financing. There are a lot of dark, hard days.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

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. In my first company I had to raise money in April 2001 or die.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

K9 Ventures

MARCH 23, 2011

It is in essence equivalent to being a Liquidation Preference that is typically seen in a preferred equity financing. Notes may have fewer rights associated with them, but they come with one big hammer. Legally, the note is still a debt instrument and can be called upon maturity. Is it in the right direction?

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

aweissman.com

JUNE 5, 2011

I am fascinated by the transformation that has occurred over the last five years in the funding of early stage technology companies, and the resulting transparency around this process.

Liquidation Preference 29

Liquidation Preference Angel Investor Incubator Early Stage 29

Up and Running

MARCH 29, 2017

I spent a couple years running a digital agency that built custom software and just dove in head-first, teaching myself to program (which would serve me well later), figuring out how to effectively run a software team, and understanding the landscape of technologies available to entrepreneurs as I helped them make their product goals reality.

Term Sheet 60

Term Sheet Venture Capital Liquidation Preference Valuation 60

SoCal CTO

JULY 13, 2010

10 Ways To Be Your Own Boss - A VC : Venture Capital and Technology , June 18, 2010 The folks at Behance and Cool Hunting asked me to talk at their 99% Conference a couple months ago. liquidation preference. Here are the top 30 along with a brief snippet from the post. Yes, even bootstrappers. And then I took a stand.

Cofounder 175

Cofounder Technical Cofounder Term Sheet Startup 175

Both Sides of the Table

MARCH 3, 2013

He talked about how for centuries education had “no technological core” (meaning it was bound by physical locations) and thus disruption was very difficult. Internationalization of Technology. We spoke about what succeeds early in technology market evolutions. If you have some time I highly recommend watching it.

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

abovethecrowd.com

FEBRUARY 24, 2015

Every successful technology company raises money throughout its lifecycle, perhaps starting with a seed investment and progressing through Series A, B, C, late-stage investments, and, for the most successful companies, an IPO. These large, high-priced private financings are the defining characteristic of this particular technology cycle.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

thestartuplawyer.com

FEBRUARY 24, 2010

About the Author Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. He obviously never launched a startup and got shafted by a co-founder. Click here to learn more about his practice.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

dondodge.typepad.com

JANUARY 15, 2011

Don Dodge on The Next Big Thing Thoughts on business and technology Home Archives Profile Subscribe About Me « Boston VCs gets first look at Y Combinator Demo Day | Main | Digg-nation is HUGE! Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees?

Equity 40

Equity Employee Dilution Valuation 40

abovethecrowd.com

APRIL 20, 2016

In late 2015, many public technology companies saw a significant retrenchment in their share prices primarily as a result of a reduction in valuation multiples. If 1999 was a wet (read liquid) bubble, 2015 was a particularly dry one. In Q1 of 2016 there were zero VC-backed technology IPOs.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Both Sides of the Table

FEBRUARY 14, 2016

There is much discussion online and also in small, private groups, about why the price of technology companies – public and private – are falling. Or down rounds might favor earlier-stage investors because the liquidation preferences of later stage investors get reduced.

Valuation 150

Valuation Down Round Startup Later Stage 150