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

Both Sides of the Table

I recently wrote about my views that startups rounds should be priced. Fred, who also wrote his views about convertible debt (significantly more succinctly than I) believes that the price of a single round should be the same for everybody. The trouble is, nobody has an incentive to agree to write the first check.

Pricing 294
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The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

When convertible debt first started being introduced as a “faster, cheaper way to get startups funded” they didn’t have pricing built into them. ” And some seed stage investors told me, “I prefer not to fight over price now. They’ll get priced soon enough by a VC.” Enter “the cap.”

Startup 354
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The Authoritative Guide to Prorata Rights

Both Sides of the Table

For starters some funds are small and thus while they put $750k into your company to own 10% of your company they might not be able to write another $2 million if you then raise a $20 million round (10%). New investors sometimes want early investors to put in money to “prove” they have confidence in the new price.

Guide 336
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What Angel Investing & Florida Condos Have in Common

Both Sides of the Table

I pointed to several Economist articles I had read that mapped historical prices of real estate for 400 years and how on average property values grow at no more 1.5% above inflation yet in many markets in the US & Europe prices were rising at 10-25% per year. And it’s driving up prices beyond their inherent value.

Invest 299
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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

I will write more about this in the next 2 weeks. I believe a bubble occurs when a market is willing to pay greater than intrinsic value for an asset class. That asset class need not represent the broader market. They are often bound by geographies and asset classes. I believe that. That’s fine.

Pricing 309
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Western Digital Rolls Out 14TB Enterprise Hard Drive

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Irvine-based Western Digital has rolled out another, gigantic hard drive, saying today that it has launched a new, 14TB enterprise class hard drive. Pricing on the new drive was not announced. WD said the drive has an MTBF of 2.5M hours, and is currently sampling to "select" OEMs.

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Why Aren’t There More Female Entrepreneurs?

Both Sides of the Table

The truth is I have been thinking a lot about the topic, I just haven’t been writing about it. She encouraged me to take acting classes as a child, which gave me confidence as a public speaker. And I believe these price points are pushing entrepreneurs to start at a much younger age. I love my dad equally, of course.