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Diversification across industry sectors is not as easily achieved for angels as could be accomplished in public markets, but can be achieved by co-investing with trusted angel colleagues in a broader set of businesses. Pre-moneyvaluation varies with the economy and with the competitive environment for startup ventures within a region.
We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. million at a $15 million pre-moneyvaluation. We had people hearing through the grapevine that we were about to raise money and new investors started calling us to get in on the deal.
Kayak was started here in my backyard of Boston… co-founder & CTO Paul English and the product/engineering team is based here in Concord MA. Co-founder & CEO Steve Hafner and the business team are based in Norwalk, CT. Pre-IPO Funding History: Kayak has raised approximately $235M in VC funding to date.
The term sheet converts all the convertible debt into a post-moneyvaluation of $100, essentially making the convertible debt worthless. The new money comes in at a pre-moneyvaluation of $100, but includes a complete refresh of founder equity to 40% of the company. Sure – it happens.
Many assume it was a cakewalk, based on the success LinkedIn has enjoyed over time and the current stature of our founder/CEO Reid Hoffman (now Chairman). Yes… he was a very successful PayPal exec and previously co-founder & VP Product of SocialNet. But keep in mind at this point Reid’s a first-time CEO.
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