Pre and Post Money
Pre and Post money refer to the value of an investment opportunity, say a company, before and after funds are invested. These terms come up when calculating exactly what an investor’s ownership...
View ArticleRound D
Round D financing is very late stage capital raising, generally by companies whose IPO seems imminent. These fundraising rounds can be seen as “quasi-IPOs,” potentially providing founders and other...
View ArticleSeries A Crunch
In recent years the number of start-ups has exploded, many being funded by friends and family of the founders. However, the number of investments in start-ups that VC funds are making has not expanded...
View ArticleSeries Seed
Series Seed are a set of simplified, standardized investment documents put forth by Marc Andreessen that have become popular for companies taking their first outside investments. They allow investors...
View ArticleTag Along & Drag Along
Tag Along and Drag Along rights come up frequently in negotiations between venture capitalists and the companies they invest in. Tag along rights ensure that minority stock holders receive the same...
View ArticleVPU
VPU, or value per user, is a poplar metric for understanding valuations on social networking sites such as Facebook, and can be compared to more standard metrics such as average revenue per user...
View ArticleInterest Graph
Facebook has made the social graph a household term. Less known, but with perhaps greater monetization potential, is the interest graph, which maps connections between individuals with common...
View ArticleVirtualization
Q. This is a really a mega-trend in the way businesses buy and use technology, and it even has implications for the Dell transaction… A. Yes. … it refers to the idea that one physical computer can act...
View ArticlePatent Trolls
Q. So we all know about patenting physical inventions, but recently “business process patents” have become very important… and this has become a key issue for many startups. A. Right. For many years,...
View ArticleRevenue Participation Notes
Q. So, this is another way of doing seed stage investing, right? And one that might be particularly good as crowdfunding gears up? A. Yes. We’ve previously talked about the classic way– common stock or...
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