SoCal CTO

JULY 13, 2010

Some great content around the intersection of startups and being a Startup CTO in June this year. This continues my series of posts: Top 29 Startup Posts May 2010 Startup CTO Top 30 Posts for April 16 Great Startup Posts from March There was some really great content in June. liquidation preference.

Cofounder 175

Cofounder Technical Cofounder Term Sheet Startup 175

David Teten

AUGUST 21, 2019

Most founders who are raising capital look first to traditional equity VCs. Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. But should they? Optionality.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

VC Cafe

OCTOBER 31, 2022

It’s a tough time for a lot of startup founders right now. This is not meant to be a negative post, but rather a temperature check of today’s market environment and the levers founders can pull on to survive this period. The pressure to protect portfolio startups seen as potential fund returners will be profound.

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

Scott Edward Walker

APRIL 9, 2012

Venture capital funds, seed funds, super angels, angel groups, incubators, and “friends and family” are all playing the seed financing game and investing early in startups in an attempt to land the next Facebook. and (iii) what securities laws do founders need to worry about in connection with the issuance of convertible notes?

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

Pascal's View

DECEMBER 30, 2012

While every company founder makes trade-offs in building a company, few entrepreneurs appreciate the far-reaching implications of several critical decisions they will are required to make at the outset of a startup’s evolution. Most founders tend to make decisions with no process, based on their gut instincts.

Cofounder 34

Cofounder Liquidation Preference Vesting Equity 34

Scott Edward Walker

SEPTEMBER 14, 2011

It is important for founders to understand that VC term sheets are usually deemed to be “non-binding” (other than perhaps a few provisions, such as the “no-shop” provision and legal fees and expenses). What Are the Key Issues for Founders? The Investors’ Right to Walk VC Term Sheets Are Non-Binding. VC Term Sheets Are Conditional.

Term Sheet 76

Term Sheet Due Diligence Liquidation Preference Redemption 76

Spencer Fry

APRIL 17, 2017

As a startup in 2017, having limited resources can in and of itself sink your entire ship. There are so many people, products, and startups that are vying for their attention, that it’s harder than ever to rise above the noise. But as an early stage startup, accountability is so important. Something has to give.

Bootstrapping 63

Bootstrapping Cap Table Liquidation Preference Cofounder 63

ithacaVC

FEBRUARY 13, 2013

Negotiate a $20 million pre-money with a 19-year-old founder CEO. Somebody who’d bale a portfolio together with the soft strong bonds of liquidation preferences, who’d laugh and then sigh… and then respond with a soft-whisper “NFW”, when his portfolio CEO says he wants to spend his life “doing what a VC does”. So, God made a VC!

Liquidation Preference 55

Liquidation Preference IRR Due Diligence LP 55

Both Sides of the Table

SEPTEMBER 2, 2009

If a company has reached a level of success, has been around for a few years and you believe the company has potential to break out into a much bigger company then you should let the founders take money off of the table. The VCs basically have liquidity in management fees along the way, in the sense they get paid decently along the way.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Both Sides of the Table

MARCH 3, 2013

Let me start by saying that Clayton is one of the most influential people on my thoughts about markets that led to both the concept behind my first startup and my main theses in investing. Startup Grind was a truly awesome conference and Derek the consumate host. Watch the 30-minute interview to hear why but summary notes below.

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

Both Sides of the Table

FEBRUARY 14, 2016

” “Mark has a vested interest in talking down valuations of startups.” Most prefer not to say this publicly for two reasons: 1) they have an entire portfolio of startups, many of whom are raising capital and 2) they prefer not to be attacked publicly or seem “anti entrepreneur.” What hogwash.

Valuation 150

Valuation Down Round Startup Later Stage 150