Both Sides of the Table

MAY 30, 2015

This is called a “full ratchet,” which is also historically a term that VCs would be crucified for trying to get away with but I’ll avoid talking about that in this post.]. If you raise at a lower price they will own more than 9%.

Liquidation Preference 150

Liquidation Preference Ratchet Angel Investor Entrepreneur 150

David Teten

JANUARY 13, 2015

There’s a dialect and lexicon in African American households that many people are unfamiliar with, so when these words creep out of your mouth during professional conversations and pitches, your intelligence is often being unfairly downgraded – it sadly is! I know people who are very smart, but still sometimes say, “that’s mines”.

Venture Capital 60

Venture Capital Greece Advisory Board Cofounder 60

Tim Keane

JANUARY 12, 2010

.   This is perceived by some investors as a way to assure that the founders are in the game for the long run. ·       Conversion provisions allowing preferred to convert to common if they choose or upon the closing of an IPO at a specified price.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

ConversionXL

NOVEMBER 20, 2019

And discounts and offers within those emails are proven tactics for increasing conversions. If including an offer reliably increases conversions, you can always tailor your offer to fit your profit margin and maximize ROI. Sending only one offer email likely misses some conversion opportunities—though that’s what most brands do.

eCommerce 112

eCommerce Email Ratchet Campaign 112

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

The Startup Toolkit

JANUARY 10, 2017

Investors can delay until you’re desperate and then ratchet the terms. I was once made to read a book called Crucial Conversations by a girl I was dating, which I’m sure was some sort of hint. It’s not just cofounders. Partners can break their contracts. Suppliers can fail to deliver.

Cofounder 20

Cofounder Technical Review Vesting Ratchet 20

Haystack

APRIL 10, 2018

I would bet most of them can barely cut through the flow, and then they have to find the best deals and look over their shoulder for a larger VC who can pick off the deal, give the founder more money, and ratchet up the valuation in the process.

Seed Stage 60

Seed Stage San Francisco Ratchet Silicon Valley 60

ConversionXL

NOVEMBER 20, 2019

And discounts and offers within those emails are proven tactics for increasing conversions. If including an offer reliably increases conversions, you can always tailor your offer to fit your profit margin and maximize ROI. Sending only one offer email likely misses some conversion opportunities—though that’s what most brands do.

eCommerce 67

eCommerce Email Ratchet Campaign 67

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). I’ve seen every imaginable type of liquidation preference structure, pay-to-play dynamic, preferred return, ratchet, share/option bonus, option repricing, and carveout.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Up and Running

APRIL 27, 2012

Without metrics, it is all too easy to continue along a path where progress is measured in code releases and homepage redesigns, and the most fundamental metrics of all, conversion rates and revenue, are relegated further down the list. They are in build mode after all. The customers can come later once it is finished. But they don’t.

Metrics 68

Metrics Nigeria Ratchet Churn Rate 68

Duct Tape Marketing

OCTOBER 10, 2018

So if we were having a conversation prior to this one, that might prevent us from becoming immersed in the conversation that we’re having right now because a part of us is always thinking about what we were doing before. A lot of that involves ratcheting down how stimulated we are by default because I think you got it right.

Ratchet 78

Ratchet Restful Email Product 78

www.seriesseed.com

DECEMBER 9, 2012

You can follow this conversation by subscribing to the comment feed for this post. I completely understand not wanting to put in an onerous full ratchet but the fact that there is no weighted average ratchet seems a bit bizarre. Listed below are links to weblogs that reference Version 2.0 Looks like the Series Seed IRA (v 2.0)

Term Sheet 40

Term Sheet Ratchet Dilution Equity 40

Startup Lessons Learned

MAY 27, 2020

Out of the Crisis #5 is a conversation with three people who pivoted their biotech company to help fight the coronavirus. You can listen to our conversation on Apple podcasts , Google podcasts , or wherever you like to download. And often what we're seeing in these hydroxychloroquine studies is a big ratcheting of a typical dose.

United States 68

United States Europe Ratchet Technical Review 68