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The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

To better understand the arguments for / against convertible equity I suggest you read my posts on those topics: Is convertible debt preferable to equity? Was Paul Graham right in his “high resolution” financing post? Convertible Notes Also Can Have Multiple Liquidation Preferences. That’s right.

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Equity for Early Employees in Early Stage Startups

SoCal CTO

Ben Yoskovitz gets to a similar point In Changing Equity Structures for Early Startup Employees : The more that those first employees feel like founders in terms of their ownership, emotional attachment, responsibility and overall understanding of the startup process (including financing, running day-to-day activities, etc.) million.

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Praying to the God of Valuation

Both Sides of the Table

Almost no financings, many VCs and tech startups cratered for the second time in less than a decade following the dot com bursting. SEEING THINGS FROM THE VC SIDE OF THE TABLE While I was a VC in 2007 & 2008 those were dead years because the market again evaporated due the the Global Financial Crisis (GFC). The tide has gone out.

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Angel Investing 4 – Why You Need Deep Pockets to Win Big

Both Sides of the Table

“When our capital and participation has helped de-risk a business to the point where it is appropriate to follow on and finance growth, we want to step up to do our pro rata and beyond.&#. more senior to you) might be piling up liquidation preferences and tilting returns in their favor. So know that going in.

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More on Liquidation Preferences

Altgate

→ More on Liquidation Preferences Posted on December 16, 2010 by admin A long time ago I had asked a VC about what pre-money valuation he was planning to put in a term sheet he had promised to send over. .&# He said it as a joke, but it is totally true that pre-money valuation is just one of a handful of key economic terms in a term sheet.

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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

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Top 30 Startup Posts in June 2010

SoCal CTO

How-to learn about angel/vc term sheets - Gabriel Weinberg , June 28, 2010 I think every startup entrepreneur (and angel investor) should have a good understanding of financing term sheets. liquidation preference. Will you negotiate million dollars rounds of financing with cool VCs? Yes, even bootstrappers.

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