Making venture math easier

By Rick Colosimo / August 5, 2016 /

I recently launched a preferred financing calculations tool for you. It’s an online spreadsheet for you to enter some basic capitalization information, a target pre-money valuation, and a target investment amount. It then shows you the results for your cap table. Some inherent things about venture math that are embodied here but that you might…

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Simple cap table for VC round calculations

By Rick Colosimo / October 23, 2013 /

Over the years I’ve had many occasions to figure out the price of an offering of preferred stock for a typical venture funded startup. This is different from, and definitely not to be confused with, the valuation of the company on a pre-money basis. That’s a topic for a later post.  In its most simple…

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Five-minute general counsel: What’s in a seed round termsheet?

By Rick Colosimo / February 1, 2011 /

Here’s a common set of angel-investor questions regarding a standard seed round term sheet for a tech company: Why are the shares divided into preferred and common? Why does the preferred stock have a limited “1x” return? What will happen with liquidation preferences in future rounds? What will happen with dividends? Does the preferred stock…

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Draft better contracts by paying attention to words

By Rick Colosimo / October 12, 2010 /

This post on the use of the term immediately, one of many similar explorations by Ken Adams, is the sort of thing that attracts me to contract drafting. There is a lot to be said for using the right language to convey an idea: language that is clear, concise, hard to misconstrue, and simple without…

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