Both Sides of the Table
SEPTEMBER 18, 2014
It’s simply what a market is willing to pay based on a future belief that your company will grow and non-linear rates and be worth much more in the future. Me: Then why don’t you take that same Series Seed doc and stick a price in it. “But lawyers will charge much more for equity.” Cashflow projections?
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
MAY 19, 2018
When you raise money from investors you produce information that you are told they want and care about: A fund-raising deck that articulates your company strategy, plans, team, market, competitors and so forth. Sending the docs via email is less friction than making people come to a data room.
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. They don’t have market power. Should entrepreneurs have convertible debt or priced equity? Same thing.
Startup Professionals Musings
DECEMBER 22, 2017
Set up an interview room, stocked with current docs. Startup equity investments imply a long-term business relationship, lasting five years or longer. During that period, it is very difficult for either party to get out of the deal, since there is no public market for the stock, and business divorces normally mean bankruptcy.
Both Sides of the Table
MAY 19, 2010
But truthfully both Dana and I are more aligned with the lean startup principles and believe you only go FAT when you’ve really proved out your product / market fit. The “private sale” market phenomenon was started in France by Vente-Privee (literally means “private sale”) and was replicated in Germany by BrandsforFriends.
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