Both Sides of the Table

SEPTEMBER 16, 2010

As I’ve highlighted I believe we’re in a unique period similar to 2005-08 where the biggest tech firms of Silicon Valley (and some media companies) are scooping up small software companies as “talent acquisitions&# versus accretive revenue / profit generators. Pay to play.

Cap Table 283

Cap Table Angel Investor Liquidation Preference Dilution 283

Both Sides of the Table

SEPTEMBER 29, 2009

Also, it’s harder to pay a $30 million pre-money value on an unproved company when you see public companies with $100 million in sales trading for less than $20 million. Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. I argued for literally a year to slash burn.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Hunter Walker

OCTOBER 14, 2024

What was it like seeing some folks raise tens of millions of dollars, and where has your financing mostly come from? From a financing perspective, to borrow from Peter Thiel I believe there is now more clarity between those who invest in and operate in the “bits” space vs. the “atoms” space. We don’t “pay to play”.

New York City 91

New York City Hockey Stick Distribution Angel Investor 91

Hearpreneur

JANUARY 20, 2021

Additionally, I have a lot of conviction that influencer marketing is going to play a huge role for consumer brands, but that it won’t look or feel quite like what you think of when you think of influencer marketing today. 24- Personal finances awareness. Thanks to Josh Stomel, Turbo Finance ! #25- Thanks to Eric Wu, Gainful !

Entrepreneur 149

Entrepreneur United States Software Review Technical Review 149

Steve Blank

APRIL 26, 2022

For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. A down round is when a company raises money at valuation that is lower than the company’s valuation in its prior financing round. A cram down is different than a down round. They’re Back.

Cram Down 417

Cram Down Founder Venture Capital Recapitalization 417

Tim Keane

JANUARY 12, 2010

For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors. . This is why a bottom up approach is more credible.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

ithacaVC

FEBRUARY 20, 2011

If the company is already producing healthy revenues, the incoming new investor mindset might be “this company should be sold within 2 years – if not, it could get ugly” There are all sorts of variants on this theme. Sometimes the investor mindset might have a shorter “sell” horizon.

Bridge Financing 40

Bridge Financing IPO Pay to Play Finance 40