Feld Thoughts

JUNE 10, 2022

Sometimes, given your syndicate configuration, you have no choice but to take structure in a new round. Rather, when you have a choice between a financing at a lower valuation and a financing with all kinds of crazy structure to try to maintain a previous valuation, negotiate the best price you can but do a clean financing with no structure.

Down Round 162

Down Round Ratchet Liquidation Preference Participating Preferred 162

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. AngelList (which I remain a big fan) also recently launched a syndicate program.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Scott Edward Walker

NOVEMBER 26, 2017

In fact, in this new fundraising environment (with syndicates on AngelList , etc.), The goal is to get one of these investors to be your “lead” or “anchor” (the one putting in the most money), who will take ownership of the deal and be there during thick and thin. your lead may be able to make the deal happen very quickly.

Term Sheet 63

Term Sheet San Francisco Founder Investment Bankers 63

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?" When AngelList first launched syndicates a few years ago, I was very skeptical of the idea of angels taking carry on my investment. I got over it.

Syndicate 28

Syndicate Syndication Ratchet Cap Table 28