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In Q4 2022, founders face tough choices

VC Cafe

Mature startups with proven business models and the potential to reach the public markets within a few years will be the safest place to park any new venture capital that comes into the ecosystem. Liquidation preferences – in addition to lower valuations, investors are looking for protective provisions.

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Top 30 Startup Posts in June 2010

SoCal CTO

liquidation preference. They start with an innovation, search for a repeatable business model, build the infrastructure for a company, then grow by efficiently executing the model. Yes, even bootstrappers. This pitcher has retired 5 of the last 7 batters. Charles Darwin. " Is Your VC Founder Friendly?

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

Steve Blank

As the company goes from searching for a business model to growth , only then will they bring in a new “professional” management team to scale the company (along with a business development executive to search for an acquirer) or prepare for an IPO. The minute you take money from someone their business model now becomes yours.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model. Second a liquidation preference and a participation. This is why a bottom up approach is more credible.

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Interview with Sramana Mitra on 1M/1M Program

Life Beyond Code

When we were looking to talk to investors, Sramana introduced us to multiple investors and acted as an advisor helping us to navigate complex term sheet clauses like tranche financing and liquidation preferences.

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In 15 Years From Now Half of US Universities May Be in Bankruptcy. My Surprise Discussion with @ClayChristensen

Both Sides of the Table

But while universities are developing online content they are not fundamentally disrupting leaning because the method of delivery is not a new business model. We talked about Liquidation Preference, Voting Rights, and all of the other valuable terms crowd-funding investors don’t understand. Neither does Clayton.

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When You’re a Hammer Everything Looks Like a Nail

Both Sides of the Table

Having raised too much money at my first company only to be buried under huge liquidation preferences and a huge board with divergent interests I have a bias for smaller funding rounds and capital efficiency. &# And I always try to put that into the mix when I’m looking at how they think about the opportunity at hand.