Remove 2009 Remove Angel Remove Equity Remove Writing
article thumbnail

What is it Like to Negotiate a VC Round?

Both Sides of the Table

” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. This was until about 2009 because most the investments in companies came from one, maybe two, sources. So how DOES a VC think about financings at early stages? It’s very simple.

article thumbnail

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

In a world where the economy only heads in one direction (read: 2009-2014) most investors & entrepreneurs forget to pay attention to gross burn. So money spent should add equity value or create IP that eventually will. I am not suggesting these are bad sources of capital – they are not.

Startup 383
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Interview with Gregg Champion, OneCubicle

socalTECH

That was the jumping off point for OneCubicle a little over 18 months ago, when we started writing the business plan and code. What I feel like now, in 2009, is that to be an entrepreneur who dabbles both in entertainment and technology, you need to be able to talk tech, and talk entertainment, and be pretty well versed in both languages.

article thumbnail

The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

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.

Startup 354
article thumbnail

Should Investors in the Same Round of Financing Ever Get Different Prices?

Both Sides of the Table

But Paul Graham really did have a point in his “ high resolution fundraising ” post – that there is a problem – particularly in angel financing – with herding cats. Since 2009 I have been counseling people to offer discounts to the first angel investors. You can do it with equity & a price.

Pricing 294
article thumbnail

This Week in VC Episode 6 with @Jason Calacanis: Best One Yet

Both Sides of the Table

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.) Short answer: no.

article thumbnail

Top 40 Startup Posts for August 2010

SoCal CTO

Dec 26, 2009). We had to write a CRM to keep track of them all. equity debate. The expanding pool of angel, seed, and super seed funds is another. Smart people who can solve other people’s problems very easily but they can’t solve their own problems. What’s going to happen in the future?' Why do startups?

Startup 191