Agile VC

APRIL 17, 2011

AGILEVC My idle thoughts on tech startups. How They Do It: Aggregate data from travel data warehouses like ITA as well as indexing travel providers websites, provide this information to consumers in a highly customizable search engine. How to Evaluate Firms for a Seed VC. How To Think About The Future. Cliff Notes S-1: Kayak.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Austin Startup

JULY 6, 2018

Background Reading: Why startups need signals. More traditional and comprehensive programs often require 5–8% of common stock, but often provide between $20K and $100K up-front as well. See: Startup Accelerator Anti-Dilution Provisions; The Fine Print. Anti-Dilution. Know that some accelerators do the same.

Dilution 48

Dilution Startup Technical Review Equity 48

VC Adventure

AUGUST 15, 2018

Most boards did some level of work to determine the FMV of a company’s stock but generally options were priced between 10% and 15% of a company’s then preferred price (because common equity sits behind preferred equity there is typically a discount applied to the FMV of common stock to account for this “overhang”).

Valuation 48

Valuation Common Stock Cap Table Software Review 48

The Startup Lawyer

JANUARY 2, 2014

I typically advise issuing 50% to 80% of the authorized shares of Common Stock to the initial founders upon incorporation. Thus, if the certificate of incorporation authorizes 10,000,000 shares of Common Stock, an aggregate of 5,000,000 to 8,000,000 share should be issued at incorporation. Incorporation'

Common Stock 84

Common Stock Founder Aggregator Stock 84

Startup Company Lawyer

JANUARY 9, 2011

Over the last 12 months, I’ve noticed a trend where early-stage startup companies raise seed financings of between $250K and $1M using a convertible note with a price cap. Tweaking convertible debt so that common stock (instead of preferred stock) is issued for the conversion discount in order to limit liquidation preference overhang.

Liquidation Preference 57

Liquidation Preference Finance Preferred Stock Common Stock 57

K9 Ventures

MAY 14, 2011

The companies go through a 3-6 month long startup bootcamp and then typically try to raise angel/seed funding. Most angels invest for a couple of reasons – some do it because they genuinely love the startup space and this is their way of continuing to be involved in a startup, sometimes vicariously. <$50K in aggregate.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

ithacaVC

SEPTEMBER 20, 2011

That means, assuming a 1X liquidation preference, that the common stock should be worth zero NOW simply based on the fact that the aggregate liquidation preference exceeds the M&A revenue multiples. Tough to argue that it is not reasonable. Worth some thought and discussion.

Liquidation Preference 49

Liquidation Preference Common Stock Stock Options Valuation 49