VC Cafe

OCTOBER 31, 2022

TVPI = total value to paid in capital (paper gains) DPI = distributed to paid-in capital (real cash gains, paid out). In a recent episode of All In, one of my favourite podcasts, Brad Gerstner, the co-founder of Altimeter capital showed historical industry data comparing the top quartile venture performance on TVPI and DPI.

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

YoungUpstarts

JULY 21, 2015

But even worse than the cost of recruiting someone new to fill the vacancy when a key employee leaves, there’s one big, looming worry that’s sure to ratchet your anxiety up to critical levels: “She knows everything!” The most important thing is retrieving the property and preventing it from further distribution.

Employee 100

Employee Technical Review Ratchet NDA 100

Tim Keane

JANUARY 12, 2010

A liquidation preference means that the investors receive their investment back (plus dividends) prior to a distribution of the proceeds to stockholders. The investor may also ask for a participation in which the investors receive some additional multiple of their investment prior to distribution of proceeds to stockholders.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Lessons Learned

SEPTEMBER 12, 2013

And the urgency stems not from an agile competitor, a first-mover market, or a power-law distribution of reward, but rather from the need to achieve enough velocity to overcome the tremendous gravitational pull of business-as-usual. In my case, the scarce resources, rather than time and money, are time and political capital.

Lean 162

Lean Startup Ratchet New York City 162

Up and Running

MAY 13, 2015

Other links: The Time to Think About the 3D-Printed Future is Now (HBR), Space Station Builds 3D-Printed Ratchet Wrench (NASA), Shapeways.com (3D printing marketplace). Our favorite 3D Printing examples: Crayon Creatures , How to Print Your Own Mountain Bike , Enabling the Future , Regenerative Medicine.

Business Plan 60

Business Plan Marketing Oregon Small Business 60

Up and Running

MAY 21, 2015

The version of “anti-dilution protection” that most benefits outside investors is commonly called a “full ratchet.” As a middle ground on the “anti-dilution clause” you should be pushing for what’s called a “partial ratchet.” As the small business owner, the goal is just to understand how to negotiate the clause to serve you best.

Covenant 60

Covenant Liquidation Preference Ratchet Dilution 60

abovethecrowd.com

APRIL 20, 2016

Examples of dirty terms include guaranteed IPO returns, ratchets, PIK Dividends, series-based M&A vetoes, and superior preferences or liquidity rights. Cash distributions are what matter at the end of the day, bug big paper gains still make for good fundraising pitches.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40