Summary: Raise as much money as possible. With these caveats: (1) maintain control at any cost, (2) monitor your liquidation preference, and (3) act like you don’t have a lot of money. Also understand that if you do raise a lot of money, you will have to (1) “go big or go home” and (2) [...]
Entries Tagged as 'Future Financings'
How much money should we raise?
April 14th, 2008 · 1 Comment
Learn more about: Case Studies · Future Financings
Why do investors want protective provisions?
August 2nd, 2007 · 6 Comments
“AOL almost sold to Compuserve in 1991 for $60M. The VCs wanted to sell. [Steve] Case won by 1 vote. 10 years later, [AOL was] worth $100 billion.”
– Mark Pincus
Summary: Protective provisions let preferred shareholders veto certain actions, such as selling the company or raising capital. They protect the preferred, who are minority shareholders, from [...]
Learn more about: Board of Directors · Future Financings · M&A · Protective Provisions
Keep your Series A options open if you raise debt
May 8th, 2007 · 12 Comments
“[Our existing investors] had put in a right of first refusal. Since I was a young entrepreneur at the time, I didn’t understand that this basically meant that you couldn’t go to any other VC… We could not get a higher valuation because [our existing investors] wanted to put more money in the company themselves. [...]
Learn more about: Convertible Debt · Future Financings






