Both Sides of the Table

MAY 9, 2018

I also had to negotiate a follow-on round at a portfolio company because new investors were trying to force a bit option-pool top-up that would dilute the founders and existing shareholders and existing investors were fighting over prorata rights. New York, Chicago, Boston, etc.

Software Review 381

Software Review Churn Rate Due Diligence New York 381

Scott Edward Walker

JULY 20, 2011

As I saw first-hand in New York City representing big, successful private equity firms, the best dealmakers have an extraordinary ability to take their emotions out of transactions and remain extremely disciplined. Tips Tip #1 – Check Your Emotions and Remain Disciplined.

Private Equity 78

Private Equity Liquidation Preference Option Pool Entrepreneur 78

Austin Startup

JANUARY 25, 2020

That’s when I began to think of New York. After confirming it in prayer, I was off to New York City. New York City Not long after arriving in NY, I threw myself into learning about as much as I can about startups and how it all works. We did that.

Delaware 62

Delaware SEC New York City New York 62

Scott Edward Walker

AUGUST 31, 2011

This is not uncommon, but I still cringe when I hear it (probably because I was trained at two big law firms in New York City and this kind of stuff typically doesn’t happen there). As I learned in New York, no matter what an investor tells you, at the end of the day it’s all business. Any advice would be appreciated.

Silicon Valley 45

Silicon Valley Term Sheet Liquidation Preference Redemption 45

Professor VC

JANUARY 17, 2008

At a $1 million, pre-money, with an investment of $500K, that would leave 67% of the company for the founders and initial option pool. Keeping this simple with no employee option pool and just founders and investors, investors would hold 60% at this point (20% for angels and 40% for VCs) and founders would have 40%.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Both Sides of the Table

SEPTEMBER 1, 2011

Even if you’re super successful there will at times be dissent on issues like: Firing founding employees, increasing the size of the option pool, putting in place provisions about selling on secondary markets, agreeing controversial “bet the company&# strategic biz dev deals and the like. Not enough skin in the game.

Strategic Investors 312

Strategic Investors Los Angeles Cap Table Startup 312