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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

People raised rounds with “a discount to the next round&# or “warrant coverage.&# Yes, these give cheaper prices to early angels but potentially not much of a discount if the company becomes hot. The reason I have generally been against convertible debt is that historically it was a mechanism that avoided price. and not a min.

Finance 286
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Outsourcing: The Question Isn’t “Should I?” But “How Do I?”

YoungUpstarts

3PL Logistics , a shipping and delivery logistics company, says that finding a company that offers “ Less-than-truckload transportation arrangements to provide cost-efficient options for smaller shipments ” is important. Remember: outsourcing doesn’t have to be a negative thing.

Warrant 211
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Be Careful not to be Penny Wise, Pound Foolish

Both Sides of the Table

.&# I took it to mean, “making decisions with small amounts of money (pennies) that end up making bad sense for affecting larger amounts of money (pounds, as in Great British Pounds).&# I thought of it as people who cut corners on small costs but paid dearly in terms of lost productivity on expensive staff.

Warrant 333
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Avoid Hiring Pitfalls When Staffing a New Venture

Startup Professionals Musings

Saving costs at hiring time can cost you a fortune through years of poor and unhappy performance. Then proceed with cautious urgency and make quick changes when warranted. Going to Craig’s list may be adequate for some roles, but your rolodex and networking are the best source for C-level executives.

Hiring 230
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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

If your idea is so amazing that it warrants my hard-earned angel money or the money of my LP investors from our fund then why should I take a risk on you if you won’t take a risk on yourself? I’ll pay my own moving costs and if we don’t raise the fund you owe me nothing.”. Why should I be? I want to join now while there’s risk.

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Launchpad LA – More Details Revealed

Both Sides of the Table

There is no cost but you must physically be based in or move to Los Angeles for the 6 months of the program. He was able to speak with a successful entrepreneur who told him how to restructure the debt (essentially by increasing their warrant coverage) and that was enough to seal the deal. Today we announced Launchpad LA V2.

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How to Work with Lawyers at a Startup

Both Sides of the Table

They usually ask for warrants (basically like a stock option) in exchange for taking a deferred fee. Like anything in life, if you want a fair deal on the deferred fee and warrant percentage you need to talk to a few lawyers to make it competitive. In every firm there are A, B and C players. Good people and evil people.