Both Sides of the Table

DECEMBER 11, 2022

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. We wanted new things to exist and to solve new problems and to see our creations come to life. But this is still all about valuations and none of it is any fun anymore.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. Your A round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

David Teten

JANUARY 13, 2015

Yes, you like hip-hop, “urban” clothing and “ ratchet television”, but all that sinks you deeper into stereotypes. Prove more through metrics. I truly believe in the meritocracy of Silicon Valley – when you have solid metrics. Feign familiarity if you must.

Venture Capital 60

Venture Capital Advisory Board Greece Cofounder 60

Up and Running

APRIL 27, 2012

Internet entrepreneurs in the UK need to push managing metrics right to the front of their to-do lists. They need to be relentless in their pursuit of identifying and tracking metrics across all aspects of their business. Most meaningful metrics. They need to re-embrace planning even if they have no desire for a business plan.

Metrics 68

Metrics Nigeria Ratchet Churn Rate 68

Tim Keane

JANUARY 12, 2010

  A full ratchet anti-dilution clause is very unfriendly to entrepreneurs; it requires them to make up the entire difference in price from their own holdings.   For the sake of this discussion it’s the method rather than the specific metric that is important. [2]   [1] Various multiples are used for various reasons.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Gust

SEPTEMBER 17, 2014

Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. There were no metrics. Him: On metrics. Your A round?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

abovethecrowd.com

APRIL 20, 2016

Anything that hints of a down round brings questions about the success metrics that have already been “booked.” Examples of dirty terms include guaranteed IPO returns, ratchets, PIK Dividends, series-based M&A vetoes, and superior preferences or liquidity rights. The typical Silicon Valley term sheet does not include such terms.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40