Both Sides of the Table
SEPTEMBER 25, 2010
When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. “A startup could also give better deals to investors they expected to help them most&# – That is a quote from Paul on the “high resolution financing&# post.
SoCal CTO
SEPTEMBER 27, 2011
Ben Yoskovitz gets to a similar point In Changing Equity Structures for Early Startup Employees : The more that those first employees feel like founders in terms of their ownership, emotional attachment, responsibility and overall understanding of the startup process (including financing, running day-to-day activities, etc.)
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Both Sides of the Table
MARCH 19, 2013
But Salesforce knew how important this process is to their success so they actively encouraged the development of an ecosystem so much so that they even invested in these third-parties to make sure they were well-enough financed to survive. That it is non-dilutive financing? It’s false logic. Your Best Eyes & Ears.
Both Sides of the Table
FEBRUARY 6, 2013
it’s the most expensive dilution you’ll ever face. Equally – a great VP Finance can be leveraged well to take on finance, legal, HR and much of the operational tasks. And the folks at Startup Grind have been kind enough to invite me to present this morning in Mountain View on the topic. Limit the number of VCs.
Both Sides of the Table
SEPTEMBER 15, 2022
This happens slowly because while public markets trade daily and prices then adjust instantly, private markets don’t get reset until follow-on financing rounds happen which can take 6–24 months. Of these companies that become well financed we only need 15–25% of THOSE to pan out to return 2–3x the fund.
View from Seed
JANUARY 13, 2021
And yes, a seed fund may have a tougher time holding on to their ownership down the road, and thus get diluted down. We’ve had multiple companies in our early funds that hit bumps and had to raise flat rounds, which hurts from a dilution standpoint but doesn’t wipe out our position. So yes, seed funds will own less. But guess what?
Both Sides of the Table
SEPTEMBER 5, 2012
Was Paul Graham right in his “high resolution” financing post? In a standard VC term sheet there is a standard term called an “anti dilution provision” and they are in nearly 100% of deals. It has nowhere near the same dilutive effects as a full ratchet except in extreme edge cases.
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