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.

Startup 355

Startup Pricing Equity Venture Capital 355

Startup Professionals Musings

DECEMBER 22, 2017

In my activities as an angel investor, and my work with new ventures seeking investment, I find the “due diligence” stage to be fraught with the most risk. Usually this stage only really starts after an investor has expressed serious interest, or already informally agreed to invest. Set up an interview room, stocked with current docs.

Invest 59

Invest Startup Doc Slides 59

Both Sides of the Table

MAY 19, 2010

Jelli - I went on record saying that I wanted to invest and that I think this company will create a big success. I don’t like going against Google Docs or against 37Signals for project management. Of course none of these funds (my own included) want to be lumped into just one category because we all move across the spectrum.

Venture Capital 241

Venture Capital Startup Platform Technical Review 241

Both Sides of the Table

SEPTEMBER 18, 2014

Me: Then why don’t you take that same Series Seed doc and stick a price in it. Me: When an investor signs a note with a cap they must assume they are willing to pay the cap or why would they invest? Me: So, who was willing to invest in that? Doesn’t their investment determine the price of the next round?

Venture Capital 417

Venture Capital Capital Pricing Doc 417

Both Sides of the Table

MARCH 2, 2011

I was thinking back to a few previous “insider baseball&# blog debates that raged for several weeks: AngelGate (aka Bin38 secret cabal), convertible debt vs. equity, bubble vs. not, and now the AngelList discussion. Should entrepreneurs have convertible debt or priced equity? I invest, work deals and do operations.

Email 287

Email Blogging Venture Capital Writing 287

Both Sides of the Table

MAY 19, 2018

Or if you’re a VC raising from LPs you have to list all of your deals, your investment value, your carrying value, your multiples, your IRRs, TVPIs, DPIs, etc along with net cashflows plus your previous LPAs. These collective sets of documents form the basis of what somebody looking at investing would call “financial due diligence.”

Funding 336

Funding Venture Capital Startup Email 336