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. Reduce burn, keep on shipping and focus on sales efficiency. Liquidation preferences – in addition to lower valuations, investors are looking for protective provisions. Keep your head up!

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

Tim Keane

JANUARY 12, 2010

It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet. This results in a range of sale prices; in this example from $118.6MM to $21MM. Let’s start at the end.   So, let’s assume here we have an 8% non-cumulative dividend.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

YoungUpstarts

AUGUST 31, 2017

Take sales tax, for instance. If you sell a product, the state where you’ve established nexus needs to be determined, as does whether sales tax applies to your product there. Each state regulates sales tax differently, so keeping track of regulations yourself can be challenging.

Ratchet 113

Ratchet Merger New York Engineer 113

Startup Lessons Learned

SEPTEMBER 12, 2013

We’ve just put a new batch of tickets on sale, and when this one sells out, the price goes up, so sign up now. After starting two companies of his own, he now heads the NYCDOE’s Markets initiative, which works on fostering smart demand for innovative solutions to the most urgent problems in New York’s public schools.

Lean 162

Lean Startup Ratchet New York City 162

Up and Running

NOVEMBER 4, 2014

The key is to have realistic expectations while still demanding a high quality of output. The problem is that the employee is likely to be distracted by all his or her demands when working from a residence. Unless a worker is normally allowed work-from-home options, be careful about granting this privilege during the holidays.

Product 99

Product Ratchet Employee Demand 99

Up and Running

APRIL 27, 2012

So instead they plough on building and coding, without paying attention to the fact that demand may be weak; customer input has been negligible; and cash is dwindling. If your website has a shopping cart a key metric to focus on is the E-commerce Conversion Rate (ECR), which measures the percentage of visitors converting to a sale.

Metrics 68

Metrics Nigeria Ratchet Churn Rate 68