Both Sides of the Table
SEPTEMBER 25, 2010
Taking it from an investor perspective (not me, angels) I think it’s totally unfair to see early angels invest, take more risk, help you get to the next level through both sweat & money, and then pay a higher price because the round had a convertible note with no cap.
Both Sides of the Table
JULY 25, 2010
The key to this strategy is getting 5 people who form the social proof to help you get a bigger angel round done at a higher valuation by tons of industry insiders and thus offering the social proof you need attract great employees and ultimately venture capital investors.
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VC Cafe
JUNE 10, 2022
According to new research by Pitchbook , the trickle down effect has already started in seed and series A startups with round sizes and valuations shrinking in size compared to 2021. But recently those round sizes and valuations have tumbled to about $10 million and $50 million, respectively, he said.
betashop.com
OCTOBER 8, 2012
If we don’t enjoy working with someone - an employee, a partner, whomever - we’re just not going to do it. Sure, we employee lots of amazing people whom we trust to help us make it great, but as Founders we still own and control the final product. 10M post-money valuation = $100M target. It’s that important.
Both Sides of the Table
NOVEMBER 4, 2009
Let’s assume that the company raised it at a normal VC valuation, which means it gave up 33% of the company and thus $5 million / 33% = $15 million post-money valuation. He’d be employee number 3. They raised $5 million in their B round. The company was being spun out of a larger company.
View from Seed
JANUARY 11, 2017
I was an early employee at PayPal and back in the 2000-2001 timeframe, and we ended up taking a fairly significant amount of strategic investment (tens of millions of $) from various banks in the US, Europe, and Asia.
Board Effect
MAY 10, 2019
There’s the owner—maybe a partner or two—but unless employees are offered equity from the get-go, there’s typically not a whole lot of dilution. It’s not unusual for owners to offer equity to early employees and advisors, both as a motivator and a form of compensation before the business turns a profit. Why do cap tables matter?
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