VC Cafe

OCTOBER 31, 2022

Some major venture firms including Accel and Lightspeed Venture Partners have purchased more stocks of companies they first backed as startups this year, defying the industry norm of selling those shares soon after public listings. 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

Both Sides of the Table

MARCH 1, 2016

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. However, they have been sending VCs far more investment checks in the last ten years than they’ve gotten back as distributions.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Life Beyond Code

SEPTEMBER 27, 2011

Thus, I have come to the conclusion that if I could help a million entrepreneurs globally reach $1 million in revenue (and beyond), that would be the foundation of a robust, distributed, and sustainable economic value creation that would add up to a trillion dollars in global GDP. a distributed, democratic model of capitalism.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116

Startup Company Lawyer

MARCH 14, 2010

I was actually somewhat surprised that the following investors have agreed to use the Series Seed documents in certain of the their deals: Baseline, Charles River Ventures, SV Angel (Ron Conway), First Round Capital, Harrison Metal Capital, Mike Maples, Polaris Venture Partners, SoftTech VC and True Ventures. Dividend preference.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Growthink Blog

MAY 23, 2011

Venture capital funds are usually 7 - 10 year partnerships whereby the general partners - the “VC” - manage the capital of the limited partners, usually institutions (endowments, pension funds, etc.). At the end of the period, all profits and proceeds are distributed to the various partners on a pre-determined split.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Agile VC

APRIL 17, 2011

Distribution revenue is CPC and CPA. . Historically more revenue came from distribution/lead-gen (57% in 2007), but this tipped in 2008 though appears to be steady from 2009 to 2010 at about 58% advertising and 42% distribution. Kayak generates both distribution (i.e. liquidation preference, 6% accumulated dividend (1).

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Scott Edward Walker

DECEMBER 13, 2018

Accordingly, the deal may be a mere fiction designed to get funds into the startup to be distributed to its investors. Following the closing of the acquisition, the startup will be dissolved, and all of its assets (including the purchase price proceeds) will be distributed to its investors and stockholders, as discussed below.

Founder 45

Founder Merger IP Liquidation Preference 45