The Startup Toolkit

NOVEMBER 4, 2011

Vision for B2C, virality-driven community. Next, we check that we’re safe from any particularly onerous terms like participation preferred. Conveniently local. The financials immediately jump out when we talk about term sheets: what’s the valuation? What’s the dilution? Looks good.

Term Sheet 31

Term Sheet Dilution Participating Preferred B2C 31

The Startup Toolkit

NOVEMBER 4, 2011

Vision for B2C, virality-driven community. Next, we check that we’re safe from any particularly onerous terms like participation preferred. Conveniently local. The financials immediately jump out when we talk about term sheets: what’s the valuation? What’s the dilution? Looks good.

Term Sheet 20

Term Sheet Dilution Participating Preferred B2C 20

Both Sides of the Table

SEPTEMBER 2, 2009

But more spend = more viral opps = more revenue down the road. >50% of our revenue in now viral. I took money with a 3x participating preferred liquidation preference with 8% compounded interest annually. I know because I’ve been there. In my first company I had to raise money in April 2001 or die.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329