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September | 2009 | StartupMath

https://bartekr.wordpress.com/2009/09

124; Comments RSS. Posted on September 1, 2009. Throughout the series of modeling posts, I’ll be using the example of Sweet Co. because Canaan, the venture firm where I am an analyst, likes investing in sweet companies. The founders of Sweet Co. own shares in the company. They decided to make things easy and start with 1,000,000 shares of Sweet Co. At a certain point, Sweet Co. needs more money than the business generates on its own, so the founders decide to raise $500k of venture capital. 1) As a rule ...

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Cap Table Basics | StartupMath

https://bartekr.wordpress.com/2009/09/01/cap-table-basics

124; Comments RSS. Posted on September 1, 2009. Throughout the series of modeling posts, I’ll be using the example of Sweet Co. because Canaan, the venture firm where I am an analyst, likes investing in sweet companies. The founders of Sweet Co. own shares in the company. They decided to make things easy and start with 1,000,000 shares of Sweet Co. At a certain point, Sweet Co. needs more money than the business generates on its own, so the founders decide to raise $500k of venture capital. 1) As a rule ...

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Introduction | StartupMath

https://bartekr.wordpress.com/introduction

124; Comments RSS. An entrepreneurs’ understanding of capitalization tables (aka Cap Tables ) is one of the most important things he/she needs to know when beginning to look at raising venture capital (or really any other kind of capital). As an entrepreneur, you can raise money in two ways (at least legally):. 1) Borrow money from a bank or a friend in the form of debt. 2) Sell a part of your company to an investor in exchange for money. Is built around option 2. Leave a Reply Cancel reply. Follow &ldqu...

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Stock Options | StartupMath

https://bartekr.wordpress.com/2009/08/31/options

124; Comments RSS. Posted on August 31, 2009. Without sounding too much like a finance textbook, an option is a contract that allows the owner of the option to purchase a common share. Of a company at some point in the future for a pre-determined price. There are two important terms to know:. These are options already awarded to employees and others. 2) Options in Pool Available for Grant. These are options that remain in the option pool and are available to be awarded in the future. Tagged: | Canaan.

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August | 2009 | StartupMath

https://bartekr.wordpress.com/2009/08

124; Comments RSS. Posted on August 31, 2009. Without sounding too much like a finance textbook, an option is a contract that allows the owner of the option to purchase a common share. Of a company at some point in the future for a pre-determined price. There are two important terms to know:. These are options already awarded to employees and others. 2) Options in Pool Available for Grant. These are options that remain in the option pool and are available to be awarded in the future. 124; Tagged: Canaan.

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Preferred Shares and an Intro to Returns Modeling – an Introduction | StartupMath

https://bartekr.wordpress.com/2009/08/29/preferred-shares-and-an-intro-to-returns-modeling-–-an-introduction

124; Comments RSS. Preferred Shares and an Intro to Returns Modeling an Introduction. Posted on August 29, 2009. Although investing and building companies is a hugely rewarding experience for VCs, the ultimate reason VCs exist is to generate a return to their limited partners (the guys that fund Venture Capital firms). One way VC’s try to protect their investments is by usually purchasing Preferred Shares. To Convert or Not to Convert? That is the Question. Than either the Seed Round or Series A round.

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Series A and Beyond | StartupMath

https://bartekr.wordpress.com/2009/08/30/subsequent-rounds

124; Comments RSS. Series A and Beyond. Posted on August 30, 2009. Now let’s assume that it’s 2 years later and Sweet Co. needs to raise more money. Let’s assume two scenarios:. 1) Things are going great. 2) Things aren’t going so great. Let’s assume that things are going great with Sweet Co. and the company raises money at an up round valuation (VC translation: pre-money valuation. Of the upcoming round is higher than the post money valuation. Down rounds are bad for two reasons:. Next week, I’ll tackle...