Remove Cofounder Remove Finance Remove Post-Money Valuation
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Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

The founders were very sympathetic; a man, laid off from his job, and his very pregnant wife, who sold their house and investing $150k into the business and are working hard to make a go of it. At this point, the very pregnant cofounder was weeping. But in the end Robert came back in to join Lori. Daymond offered to be an advisor.

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Guy Kawasaki’s 10 Questions to Ask Before You Join a Startup

www.mint.com

What is the post-money valuation of your last round? Post-money valuation” is the value of the company after the last round of money was put in (again, lines of credit and promises don’t count). But you should beware of boards that are only the founders and their family and friends.

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Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

Andrew Krowne and I recently co-wrote an article in Tech Crunch , Why SAFE Notes Are Not Safe for Entrepreneurs. This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. But it is also a topic that many find esoteric and difficult to grasp.

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What is it Like to Negotiate a VC Round?

Both Sides of the Table

I am reminded of this problem every time my firm does a financing where a note went before us but more specifically I was reminded by this great post by Brad Feld to talk about the pre-money vs. post-money conversion issue. It’s worth reading his post to understand the problem. It’s very simple.

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Why Co-Founders Are a Startup's Biggest Liability | The Startup Lawyer

thestartuplawyer.com

He obviously never launched a startup and got shafted by a co-founder. He obviously never launched a startup and got shafted by a co-founder. He obviously never launched a startup and got shafted by a co-founder. You can start by examining every aspect of the co-founder relationship.

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The Silliness Of Recapping Seed Rounds

Feld Thoughts

A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. Sure – it happens.

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Walking Away From Liquidity

Seeing Both Sides

At a (pre-blizzard) conference I attended today run by Gridley & Co, this theme was reinforced, with rosy predictions of an M&A boom. In each case, a strong unsolicited offer came in that would have yielded "VC-like" returns and many millions for the founders and senior executives.