David Teten

JANUARY 19, 2021

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). That said, Jonathan Bragdon, General Partner, Capacity Capital , points out that Flexible VC terms “twin” well with equity: providing less dilution while still providing investor assistance. . Governance.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Version One Ventures

SEPTEMBER 12, 2017

It has 10 times the market cap of SNAP, the most prominent IPO of 2017. Then, if you win the deal, you have major influence on the development of the start-up through negotiated governance mechanisms like board seats, information rights, anti-dilution rights, etc.

Venture Capital 164

Venture Capital LP Dilution Limited Partner 164

The Equity Kicker

APRIL 13, 2012

Throughout our evolution, from privately held start-up to large, publicly listed company, we have managed Google for the long term — enjoying tremendous success as a result, especially since our IPO in 2004. Having the flexibility to use stock without diluting our structure will help ensure we are set up for success for decades to come.

Dilution 87

Dilution Stock Government SEC 87

Gust

MAY 24, 2012

Dual-class voting structures are receiving a lot of attention these days along with intense publicity related to the Facebook IPO , following in the wake of other recent tech IPOs with a similar structure such as Zynga and LinkedIn.

IPO 159

IPO Equity Common Stock Stock 159

Austin Startup

MARCH 7, 2021

Are they running from high prices, high taxes, dysfunctional government, and wildfires? All of the investors, all of the big companies, all of the government groups?—?they In fact, the Houston city government ranks number onein the country in renewable energy use. What’s bringing them here? Count all of the people you know!

Texas 90

Texas San Antonio Houston Dallas 90

Startup Lessons Learned

OCTOBER 26, 2009

What we call “community management&# is actually governance. It is our obligation to govern well, but – as history has repeatedly shown – this is incredibly hard. Every time you listen to customers, you fear diluting your vision. What we call “community management&# is actually governance.

Advisory Board 151

Advisory Board Customer San Francisco Lean 151

www.paulgraham.com

APRIL 28, 2010

In an IPO, it might not merely addexpense, but change the outcome. Those remedial actions can delay, stall or even kill the IPO. Of course the odds of any given startup doing an IPO are small.But not as small as they might seem. Whatkind of anti-dilution protection do they want? They just want to invest in this startup.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Both Sides of the Table

SEPTEMBER 10, 2021

In 2001 companies IPO’d very quickly if they were working, by 2011 IPOs had slowed down to the point that in 2013 Aileen Lee of Cowboy Ventures astutely called billion-dollar outcomes “unicorns.” How little we all knew how ironic that term would become but has nonetheless endured. A seed round these days is $3–5 million or more!

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

abovethecrowd.com

APRIL 20, 2016

The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. In Q1 of 2016 there were zero VC-backed technology IPOs.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

www.paulgraham.com

OCTOBER 23, 2010

They get the same kind of stock and get diluted the same amount in futurerounds. So the deals take longer, dilute you more, and imposemore onerous conditions. They didnt talkWall Streets language when they did their IPO, and Wall Streetdidnt buy. Usually angels are financially equivalent to founders.

Startup 105

Startup Cofounder Software Stock 105

Reid Hoffman

JUNE 8, 2021

Airbnb was preparing for an IPO right when the pandemic hit, and everything changed in a matter of days. Most boards have an audit committee, a nominating governance committee and a comp committee. That probably saved a huge amount of dilution, rather than doing a down round at between $15 billion to $18 billion.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

Reid Hoffman

JUNE 8, 2021

Airbnb was preparing for an IPO right when the pandemic hit, and everything changed in a matter of days. Most boards have an audit committee, a nominating governance committee and a comp committee. That probably saved a huge amount of dilution, rather than doing a down round at between $15 billion to $18 billion.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

Scott Edward Walker

JULY 7, 2011

Redemption rights are principally designed to protect investors from a situation where, after a period of time, their portfolio company is just moving “sideways” and, accordingly, is not an attractive acquisition target or IPO candidate. What Does a Redemption Rights Provision Look Like?

Term Sheet 49

Term Sheet Redemption Venture Capital San Francisco 49