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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...

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Round 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...

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Series 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...

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Series 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...

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Tag 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...

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VPU

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...

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Interest 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...

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Virtualization

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...

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Patent 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,...

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Revenue 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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