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

Both Sides of the Table

Because convertible debt deals often have both a ‘full ratchet’ and often have ‘multiple liquidation preferences’ “ Yup. Convertible Notes Also Can Have Multiple Liquidation Preferences. Convertible notes often have multiple liquidation preferences. That’s right.

Ratchet 354
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Praying to the God of Valuation

Both Sides of the Table

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. The tide has gone out. But this is still all about valuations and none of it is any fun anymore.

Valuation 466
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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.

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How to Work with Lawyers at a Startup

Both Sides of the Table

You never got around to agreeing exact equity splits but you had many conversations about it. They’ll invite you out to events in which you’ll meet their other clients, you can get to know them socially and hopefully develop a real mentorship relationship where every conversation is not on the clock.

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In Q4 2022, founders face tough choices

VC Cafe

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. Liquidation preferences – in addition to lower valuations, investors are looking for protective provisions. Israeli tech review Q3 2022, IVC Online and Bank Leumi.

Founder 173
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Thinking big and doing stuff properly

The Equity Kicker

Many of the conversations and talks there revolved around the importance of having big ambition and of doing quality work. Betting too early on a billion dollar outcome and building up a big liquidation preference can turn what would otherwise have been a decent success into a failure.

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Top 30 Startup Posts in June 2010

SoCal CTO

" 8 Questions to Ask When Interviewing at a Startup - Instigator Blog , June 18, 2010 Job interviews are meant to be conversations. liquidation preference. " And in the spirit of how to get your ideas to happen, they asked me to talk about entrepreneurship and the myriad ways you can "be your own boss."

Cofounder 175