Agile VC

APRIL 17, 2011

How They Make Money: Majority of Kayak’s revenue actually comes from advertising on their site (55%), not lead generation or referral fees to travel suppliers as you might think (more on this below). Financial Snapshot: 2010 Revenue: $170 million. Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008).

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Both Sides of the Table

MARCH 1, 2016

LPs have been feeling great about venture capital due to holding valuable paper positions in companies like Uber, Lyft, Airbnb, Dropbox, all of which they feel confident will drive large cash distributions in the future. Without some cash distributions, eventually LPs will become stretched.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Both Sides of the Table

MARCH 3, 2013

Obviously that barrier has been brought down with low-cost ability to capture, stream and distribute content over the Internet. We talked about Liquidation Preference, Voting Rights, and all of the other valuable terms crowd-funding investors don’t understand. ” No royalty paid until there is revenue.

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model. Second a liquidation preference and a participation. This is why a bottom up approach is more credible.   First , dividends.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Growthink Blog

MAY 23, 2011

With this capital, the company propels itself to $50 million+ in revenues, and to either a sale to a strategic acquirer or to an initial public offering. 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

abovethecrowd.com

APRIL 20, 2016

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. This is because these companies have raised so much capital that the early investor is no longer a substantial portion of the voting rights or the liquidation preference stack.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Up and Running

MAY 21, 2015

What this means, is that he gets paid not as a portion of the profit, but as a portion of the overall revenue, regardless of the profit. That’s because preferred shares operate under a completely separate set of rules (which will be defined in the investment documents) than your shares. Liquidation preference.

Covenant 60

Covenant Liquidation Preference Ratchet Dilution 60