Both Sides of the Table

DECEMBER 11, 2022

We had nascent revenues, ridiculous cost structures and unrealistic valuations. I learned to avoid unnecessary conferences, avoid non-essential costs and strive for at least a neutral EBITDA if for no other reason than nobody was interested in giving us any more money. Until we weren’t. Nobody cared about our valuations any more.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Both Sides of the Table

SEPTEMBER 5, 2012

Because convertible debt deals often have both a ‘full ratchet’ and often have ‘multiple liquidation preferences’ “ Yup. The key for entrepreneurs to understand is whether it’s a “full ratchet” or a “weighted average ratchet.” Convertible notes have full ratchets.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

VC Cafe

OCTOBER 31, 2022

Two weeks ago in San Francisco, a conversation with tech lawyers from the US and Europe was a confirmation of what I read in the news. Israeli tech review Q3 2022, IVC Online and Bank Leumi. Israeli Tech Review Q3 2022 (Source: IVC Online and Bank Leumi ). It’s an investors market. Investors are calling the shots. of deal value.

Founder 174

Founder Technical Review Down Round Liquidation Preference 174

Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Startup Lessons Learned

MAY 7, 2009

He summarized that conversation well, so rather than re-tread that material, Ill quote it here: One thing that I was surprised to learn was that IMVU started out with continuous deployment. As the product matured, they were able to ratchet up the quality to prevent regression on features that had been truly embraced by their customers.

San Francisco 131

San Francisco Continuous Deployment Software Review Lean 131

Feld Thoughts

FEBRUARY 9, 2016

Much of it is very short term focused and, like a giant tractor beam, draws the conversation into a very short time horizon (as in days or weeks). One of my favorite lines in buried in the middle: “I’ve heard enough companies say “we simply can’t cut costs or it will hurt the long-term potential of the business” to get a wry smile.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Gust

SEPTEMBER 17, 2014

Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. These are all real conversations. At an accelerator ….

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153