Remove Conversion Remove Entrepreneur Remove Liquidation Preference
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Praying to the God of Valuation

Both Sides of the Table

I was in it for the love of working with entrepreneurs on business problems and marveling at technology they had built. If they are private we still have fig leaves that cover us because some rounds might raise debt vs. equity or might fund with terms like multiple liquidation preferences or full-ratchets or convertible notes with caps.

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The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly. A standard entrepreneur retort I heard back then (2008-09) was “I don’t know what my company is worth now.

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One Simple Paragraph Every Entrepreneur Should Add to Their Convertible Notes

Both Sides of the Table

I’m so tired of seeing young entrepreneurs get screwed by their angel investors on convertible notes and I know I can’t convince you not to do it so I’d like to offer one simple bit of advice to help you avoid getting screwed (at least on one part of your note). It’s the silent screwing that stings.

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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

At the end of the day Kayak’s playing a key role in the online travel process, but it appears more of the revenue comes from filling top of the conversion funnel rather than the middle or bottom of it. liquidation preference, 6% accumulated dividend (1). Series A-1 Preferred. Series B Preferred. Read More ».

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Down Rounds: Deal With Reality

Feld Thoughts

I like the quote she pulled out of me in our conversation. So, as an entrepreneur, I encourage you to deal with reality. I don’t respond to many interview requests these days, but I’ll always talk to her. She has a good article today in TechCrunch titled Embrace the down round (it’s going to be okay, maybe).

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Should Entrepreneurs Attend Business School?

Up and Running

As I read stories of college dropouts who had successfully sold tech companies, or entrepreneurs with innovative ideas who made it big on Shark Tank, it became clear that there was no set path to startup success. C Corp versus LLC, non-competes, liquidation preferences, preferred versus common stock, and so on).

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Bad Notes on Venture Capital

Both Sides of the Table

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.