ReadWriteStart

AUGUST 9, 2021

The world changes, consumer needs change, markets change, the art of branding takes all that into account. In a way, this is an opportunity to become a leader in a new landscape — plenty of less astute and adaptable brands won’t make it — leaving gaps in the market. Or, fingers crossed, the post-Covid era?

eCommerce 176

eCommerce B2C Naming Agile 176

The Startup Toolkit

NOVEMBER 4, 2011

Next, we check that we’re safe from any particularly onerous terms like participation preferred. If you over-perform, then you would have raised on better terms in the free market. Deal 2 is marketing-driven. I’m a little burned out on chasing the market. Looks good. 5% investor experience (to Deal 1).

Term Sheet 20

Term Sheet Dilution Participating Preferred B2C 20

The Equity Kicker

MARCH 3, 2016

The headline finding was that the unicorn investors had significantly more downside protection than public market investors. All of the deals had a liquidation preference of 1x or more. However, few of the deals went beyond a simple 1x non-participating preference share. Median valuation: $1.6bn.

Liquidation Preference 60

Liquidation Preference Participating Preferred Valuation IPO 60

ithacaVC

DECEMBER 14, 2011

Sometimes, after getting back the LP, the preferred holder then converts to common and gets its prorata share of proceeds left after all LP has been paid (this is called participating preferred). One final background point, a “liquidation event” is a sale of the company and typically NOT an IPO.

Liquidation Preference 49

Liquidation Preference LP Preferred Stock Liquidity Event 49

The Equity Kicker

JANUARY 25, 2016

On Friday it seemed like everyone in the venture capital industry was again reading about market turmoil, this time the news is that angel investors are pulling back and valuations taking a hit. In the ecommerce and marketplace markets Forward Partners operates in growth is limited because business has to scale country by country.

Venture Capital 60

Venture Capital Angel Investor Startup Participating Preferred 60

Both Sides of the Table

SEPTEMBER 2, 2009

We could do more in 2010 with more VC investment; the doubling assumes only ratable increase in marketing spend to achieve profitability. I took money with a 3x participating preferred liquidation preference with 8% compounded interest annually. But more spend = more viral opps = more revenue down the road.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

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

Professor VC

JULY 25, 2013

Yes, there are a number of cases in the middle where having a senior or participating preference does make a difference in liquidation proceeds, but I argue that it does very little to overall returns in a diversified portfolio. Unfortunately, not everyone follows the KISS principle.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

www.payne.org

SEPTEMBER 22, 2011

2 Stock Classes: Common and Preferred. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. Common stock holders can use the "total preference" to estimate their returns. 3 Dilution.

Equity 56

Equity Employee Vesting Preferred Stock 56

ConversionXL

MAY 31, 2016

Let’s talk about the collective pain in everyone’s marketing ass. Before we get into these practices, I want to address a key disconnect many marketers have when approaching mobile CRO. The All-Important Fact Marketers Are Missing With Mobile. Let’s talk about the collective pain in everyone’s marketing ass. You know it.

Mobile 48

Mobile Conversion Design 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?" They have build a great platform and should be compensated for the marketing, administration, etc. Well, maybe so after watching his middle finger salute.

Syndication 28

Syndication Syndicate Ratchet Cap Table 28

ConversionXL

MARCH 19, 2012

These learned preferences can just as easily involve characteristics that, from an objective standpoint, do not make a product any better and might even make them worse — particularly when it relates to texture. In the marketing world, Dhar says, “meaningless attributes often lead to meaningful differentiation. “. Now it is an SUV.

Social Media 129

Social Media Technical Review Arlington Clickthrough 129

Both Sides of the Table

APRIL 14, 2010

Once you cross the threshold where their percentage ownership would be worth more than the value of their preference they “convert&# their preferred stock into common stock and take their proceeds pari passu (along side and on the same terms as you) with the common stock holder. So you don’t bother. Buy the second home.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Dividend 289

ConversionXL

APRIL 17, 2019

These learned preferences can just as easily involve characteristics that, from an objective standpoint, don’t make a product any better—and might even make them worse, especially when it comes to texture. In the marketing world, Dhar says, “meaningless attributes often lead to meaningful differentiation.”

Customer 132

Customer Social Media Arlington Media 132

ConversionXL

JULY 12, 2017

It’s just another facet of “greedy marketer syndrome.”. In addition, the same study found that 100% of participants preferred sites with sticky navigation bars, despite usually not knowing why (that’s all of the participants – crazy). As a marketer, you’re likely familiar with popups. It’s famous.

eCommerce 100

eCommerce Mobile Conversion Design 100

ConversionXL

JULY 12, 2017

It’s just another facet of “greedy marketer syndrome.”. In addition, the same study found that 100% of participants preferred sites with sticky navigation bars, despite usually not knowing why (that’s all of the participants – crazy). As a marketer, you’re likely familiar with popups. It’s famous.

eCommerce 95

eCommerce Mobile Conversion Design 95