2008 Equity Pricing Writing 
Both Sides of the Table
DECEMBER 11, 2022
In those years I learned to properly build product, price products, sell products and serve customers. Between 2006–2008 I sold both companies that I had started and became a VC. Starting in 2009 I began writing checks consistently, year-in and year-out. So now our collective companies are worth less. The tide has gone out.
Both Sides of the Table
SEPTEMBER 5, 2012
This time by the efforts of Adeo Ressi to introduce a new kind of structure called “ convertible equity.” My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly.
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Both Sides of the Table
JUNE 22, 2011
I will write more about this in the next 2 weeks. But that doesn’t mean that people are paying rational prices as investors based on intrinsic value. Rational people can disagree and some may argue that today’s prices are rational and under-pinned by economic drivers. I believe that. That’s fine.
Both Sides of the Table
FEBRUARY 14, 2016
There is much discussion online and also in small, private groups, about why the price of technology companies – public and private – are falling. It pains me to see the typical (and predictable) responses on Twitter, “VCs want prices to drop!” ” “Sure, prices are dropping.
Both Sides of the Table
SEPTEMBER 29, 2009
Three reasons: There is a relative valuation between the price a VC pays and their expectations of what it will exit for in an IPO or trade sale. This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action. Short answer – yes.
Both Sides of the Table
MARCH 11, 2010
But there are also problems / risks: - the funding environment might change dramatically – there may never be a next round (see: March 2000, September 11, 2001 and September 2008). - And how do you think the next person who’s thinking about writing you a check going to feel about that sort of cavalier attitude with their money?
Both Sides of the Table
MAY 15, 2010
Clearly a startup should consult its lawyer before filing or not filing.But the attorneys I relied on to write this piece told me that they’ve done lots of Section 4(2) deals in the past, and would recommend it to clients who had relatively simple financing agreements (not tranched-out, not too many investors, etc.) They also avoid Reg D.
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