Architecting valuations (building a house of cards)

get link In a day and age of valuations as  score card there are in some cases extraordinary efforts being made to forcefully make certain milestone valuations happen (100m, 500m, 1bn etc). The right way to make a high(er) valuation happen is of course to have someone just pay that price with fair and appropriate growth / later… Continue reading

Careful what you wish for – setting precedents as an early investor

http://sessiontapes.com/author/sessiontapes/twitter.com/sessiontapes I suppose this about short term greedy vs long term greedy. It is short term greedy to put onerous terms on to an early stage company just because you can. This is not about finding (or adjusting to) the right price – this is about unreasonable participating liquidation preferences (multiples thereof), too high a dilution… Continue reading

Leaped like a tiger, landed as a bedside rug – the risks of overselling your round

There is a German saying that goes something like this: “Als Tiger gesprungen und als Bettvorleger gelandet.” A rough English translation is “leaped like a tiger, landed as a bedside rug” – it basically means someone came roaring in to say a negotiation / argument / situation but essentially was overselling and or bluffing from… Continue reading