ReadWriteStart

AUGUST 9, 2021

55-65-year-olds were the most drawn to historied and trusted branding, with almost twice as many participants preferring this option compared to innovative brand names. Men were found to have little to no preference in siding with trusted brand names compared to those that are innovative.

eCommerce 176

eCommerce B2C Naming Agile 176

Both Sides of the Table

SEPTEMBER 2, 2009

A friend of mine is a serial entrepreneur and is running a high-profile, early stage company in NorCal. We exchanged ideas when I was an entrepreneur along side him in NorCal in 05-07 and my point-of-view on founder / VC relationships hasn’t shifted even 1% since I went to the dark side. I believe this is wrong.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Berkonomics

JANUARY 6, 2022

First, the marginal exit event: Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Here’s an example that will make your heart skip a beat.

Dividend 62

Dividend IRR Preferred Stock Participating Preferred 62

Scott Edward Walker

JUNE 9, 2019

I liken it to participating preferred — which founders also do not typically understand until it is too late. This is a huge red flag and founders should push back very hard. In short, super pro rata rights are another example of investors trying to take advantage of inexperienced founders.

Preferred Stock 56

Preferred Stock Term Sheet Dilution Stock 56

Professor VC

JULY 25, 2013

This is the feeling you get from watching the venture capitalists talk about the entrepreneurs and other investors in the film. I''m all for transparency, but won''t be naming names in this post as I don''t want to put some entrepreneurs in a difficult position. Startup outcomes tend to be very binary.

Term Sheet 46

Term Sheet Silicon Valley Syndication Syndicate 46

Scott Edward Walker

APRIL 9, 2012

They are also typically granted certain additional economic rights (like Series A investors), such as pro-rata rights and a liquidation preference. In fact, in the Fenwick Survey , 9% of the preferred stock seed financings included a participating preferred liquidation preference (which is not founder friendly).

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

Berkonomics

OCTOBER 1, 2015

Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Take a situation where the VC investors finally see the chance of a return after ten years, with participating preferred and fifty percent of the ownership after several rounds.

Dividend 48

Dividend Preferred Stock IRR Participating Preferred 48

Professor VC

JUNE 6, 2016

I can just picture Mr. Rogers saying "Children, can you say participating preferred stock with an uncapped 3x liquidation preference and a full ratchet?" I work hard on mine and you work hard on yours and we all win (entrepreneurs, angels, and upstream VC's). It's great for entrepreneurs! I got over it.

Syndication 28

Syndication Syndicate Ratchet Cap Table 28

Both Sides of the Table

APRIL 14, 2010

It’s meant to be a bit provocative but the reality is that I give this advice to entrepreneurs all the the time and I usually leave the “e&# off of the end. I normally offer this advice in the capacity of really wanting to help entrepreneurs so please bear with me. Take liquidation preferences head on.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Dividend 289

The Equity Kicker

JULY 4, 2012

Regular readers will be well aware that through 2011 and into early 2012 Nicholas Lovell and I were writing a series of 50 blog posts designed to help entrepreneurs with the fundraising process, and that we intended to publish them in book format once we were finished. The round closes, champagne is drunk.

Venture Capital 107

Venture Capital Due Diligence Participating Preferred Dilution 107