Both Sides of the Table

AUGUST 9, 2011

I thought about things I never had to as an entrepreneur: check size, ownership percentage, deal stage, portfolio construction and risk. Finance where needed. So I encouraged entrepreneurs to think about raising their funds as quickly as they could because. I have a young entrepreneur friend who IMs me a lot.

Stock 305

Stock Technical Review Marketing Greece 305

David Teten

JANUARY 19, 2021

When the company hits potholes, Flexible VC investors usually don’t have the nuclear options of firing management and/or doing a recapitalization. Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.”

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Feld Thoughts

JULY 14, 2015

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. So they recapitalize the company. A company raises $1m of seed money from angels in a convertible note with a $6m cap.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

blog.simeonov.com

FEBRUARY 22, 2010

Even if you are an experienced entrepreneur, you’ve probably only seen a few founder agreements in your life. However, founder agreements are not set in stone and it is common for them to be tweaked by a little or a lot during the first financing by professional investors. more details ].

Founder 44

Founder Vesting Agile Startup 44

venturehacks.com

MARCH 21, 2008

Normal advisors are also assembled by naive entrepreneurs who think the mere presence of an advisory board will create social proof and help them raise money. A naive entrepreneur hires the wrong business advisor and a major new investor asks the entrepreneur to clean up the dead wood.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. Many modern entrepreneurs have limited exposure to the notion of failure or layoffs because it has been so long since these things were common in the industry. By the first quarter of 2016, the late-stage financing market had changed materially.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40