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

That means that investors are contractually demanding to get 2-5x their investment, before other share classes get paid. Liquidation preferences – in addition to lower valuations, investors are looking for protective provisions. That means that in these down rounds, some investors are asking to 2-5x liquidation preferences.

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

Startup Lessons Learned

DECEMBER 7, 2008

As the company grows, hes the go-to person for almost everything technical, and so hes very much in demand. It also helps ratchet down the pressure, since so many of the interruptions that plague the typical hacker are actually the same bugs recurring over and over. He throws off volumes of code, and it works. Sure, it seems efficient.

Software Review 94

Software Review Technical Review San Francisco Part-Time VPE 94

Tim Keane

JANUARY 12, 2010

  It is very expensive if you’re the entrepreneur since it doubles the cost to the company of paying dividends to the entrepreneur.   A full ratchet anti-dilution clause is very unfriendly to entrepreneurs; it requires them to make up the entire difference in price from their own holdings.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

YoungUpstarts

AUGUST 31, 2017

If your startup is eyeing international expansion early on, your tax compliance and planning needs, both home and abroad, immediately ratchet up. A misstep in any one of these areas can cost you tens of thousands of dollars, so bring in someone who knows his stuff. Use your resources. Read more tax advice from Anjum.

Ratchet 113

Ratchet Merger New York Engineer 113

Babbling VC

DECEMBER 12, 2010

It's probably the same price as the costs of staff to man the registration desks. This way, you'd create demand from all the people who weren't invited and you'd get a bit of a TED effect. Somehow I believe it just makes sense to have people register/check-in before the event. Let me print out my own badge.

Ratchet 71

Ratchet Japan Asia India 71

Up and Running

APRIL 27, 2012

These students are typically attracted to Internet and technology start-ups, given that these share favourable industry characteristics such as significant addressable markets, low barriers to entry, modest initial capital requirements and relatively low costs of customer acquisition. These entrepreneurs soon find out it is not.

Metrics 68

Metrics Nigeria Ratchet Churn Rate 68