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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. “A startup could also give better deals to investors they expected to help them most&# – That is a quote from Paul on the “high resolution financing&# post.

Finance 286
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8 Tips To Get the Most Out of Your Investors and Board

Both Sides of the Table

In this period (less than 2 years) he has brought on incredibly talented senior execs is sales, marketing, product management, client services, finance, vp engineering and more. I respect Rob a lot and the fact that he is willing to take feedback when warranted gives his great credibility. Rob is driven to learn. And improve.

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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

If your idea is so amazing that it warrants my hard-earned angel money or the money of my LP investors from our fund then why should I take a risk on you if you won’t take a risk on yourself? VCs don’t have the same net worth litmus test and great entrepreneurs have a ton of sources for seed money to get financed very early.

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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

You will build out features or expend to platforms — often before you have enough market feedback to warrant it. These types of firms may see your follow-on financing as a chance to “buy up ownership.” Most firms are somewhere in the middle.

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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? valuation and another person funds you with convertible debt at $5m valuation (high resolution financing) and your equity round finally closes at a $10 million valuation. Some thoughts on raising angel money. So let me weigh in more loudly than in the past.

Ratchet 354
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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

He or she wants to know how long the money you will raise will last and whether this is long enough to warrant taking a risk on funding you. Most VCs lead one round of financing in your company and are looking for other VCs to lead subsequent rounds.

Burn Rate 247
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Be Careful not to be Penny Wise, Pound Foolish

Both Sides of the Table

If you’re business has complicated accounting (like many ad network businesses) and if you’re raised enough money to warrant it – a great VP Finance is worth his/her weight in gold. Hire a part-time accounting clerk to do the data entry and prepare the monthly books.

Warrant 333