Remove Finance Remove Marketing Remove Ratchet
article thumbnail

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

Both Sides of the Table

Was Paul Graham right in his “high resolution” financing post? Because convertible debt deals often have both a ‘full ratchet’ and often have ‘multiple liquidation preferences’ “ Yup. This has worked very well in the 2009-2012 time frame because the tech market has boomed in this period.

Ratchet 354
article thumbnail

Fear is the mind-killer

Startup Lessons Learned

As the product matured, they were able to ratchet up the quality to prevent regression on features that had been truly embraced by their customers. As Eric said, “at IMVU, ‘release’ is a marketing term&#. Third, they evolved ways to selectively expose functionality to sets of users.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Bottom Up Market Sizing » January 12, 2010. Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values. Startups and angels: Along the way to success. times at 5 years and 11.39

article thumbnail

Should I give my seed investors anti-dilution protection?

Gust

What this investor is seeking is called “permanent, full-ratchet, anti-dilution protection”, and that is neither (a) in line with the market, nor (b) practical. That’s why anti-dilution provisions are typically only applicable to the next financing. So, no , you simply can’t give him what he wants.

Dilution 137
article thumbnail

Version 2.0 and why Series Seed Documents are better than capped convertible notes

www.seriesseed.com

Series Seed Financing Documents Blog.   That’s because there are not that many issues to negotiate in a simple equity financing. Have you had anyone from Canada use these documents for financing a Canadian (Quebec) entity? SeriesSeed.com. Blog Archives. « Step 2 (as opposed to version 1.1) | Main. 09/02/2010.

article thumbnail

Raise Capital With The Skin You’re In: Blunt Truth from Don Charlton, CEO, The Resumator

David Teten

And the “Uber of Greece” is in Greece – not exactly the next big market. Yes, you like hip-hop, “urban” clothing and “ ratchet television”, but all that sinks you deeper into stereotypes. HURDLE #3: FAILURE TO APPRECIATE THE MARKET OPPORTUNITY. All founders selling to new markets have this challenge. Think bigger!

article thumbnail

Praying to the God of Valuation

Both Sides of the Table

How might our next phase of the journey seem brighter, even with more uncertain days for startups and capital markets? And then in the late 90’s money crept in, swept in to town by public markets, instant wealth and an absurd sky-rocketing of valuations based on no reasonable metrics. It’s just a market. What happened?

Valuation 466