Question: What is the one term/clause/function you hate seeing in Capital Raising documents for your founders and wish was abolished forever? Answer: I truly despair about “full ratchet” down provisions in the anti-dilution sections of angel/venture capital amended charter documents. Full ratchet provisions grant investors immunity from down rounds by adjusting the conversion to common [...]
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Question: Why would I, as a founder, prefer priced shares (Prefs or Equity) over a Capital Note? Answer: If the context of this question is the Founder’s company doing a capital raise, and the company is a startup (or even a more mature company being evaluated for investment by non-institutional investors), I would prefer to [...]
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[toc] Event Summary Objectives of this panel To help entrepreneurs determine whether venture funding or bootstrapping is more appropriate for their project. Understanding how to position your company for financing success under each scenario. The investor’s perspective What is a venture fund (limited partners, general partners)? Expected returns on portfiolio companies (~80% failures, ~15% breakeven, [...]
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Paul Graham is one of the founders of Y Combinator. In this recent blog article he questions the necessity of VC’s given the persistently declining cost of starting a tech venture. This inquiry is very much at the heart of the motivation behind Ultra Light Startups – and a question which we continually seek to [...]
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