Both Sides of the Table

DECEMBER 11, 2022

We had nascent revenues, ridiculous cost structures and unrealistic valuations. Within 5 years I was on the board of real businesses with meaningful revenue, strong balance sheets, no debt and on the path to a few interesting exits. Until we weren’t. 2001–2007: THE BUILDING YEARS The dot com bubble had burst. I am having fun again.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

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. Your A round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.   Pre-bubble Siliicon Valley deals were popularly valued at multiples of revenue. This is why a bottom up approach is more credible.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

ConversionXL

NOVEMBER 20, 2019

So cart abandonment emails are often a top revenue generator. And discounts and offers within those emails are proven tactics for increasing conversions. So, simply sending an abandoned cart email (without an offer) may increase your revenue. Cart abandonment is a huge issue in ecommerce. All standard wisdom. limited stock).

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. Revenue multiple? These are all real conversations.

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. They’re now profitable, have a great team, and doing half a million quid a year in recurring revenue. Does it matter?

Cofounder 20

Cofounder Technical Review Vesting Ratchet 20

Up and Running

APRIL 27, 2012

A more fundamental problem that entrepreneurs can control, however, is related to their understanding of the key revenue drivers of their businesses. The more visitors you bring to your website the greater your potential to derive revenue from them regardless of your business model, and without costs growing in proportion.

Metrics 68

Metrics Nigeria Ratchet Churn Rate 68