Making venture math easier

By Rick Colosimo / August 5, 2016 / Comments Off on Making venture math easier

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 / Comments Off on Simple cap table for VC round calculations

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 / Comments Off on Five-minute general counsel: What’s in a seed round termsheet?

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 / Comments Off on Draft better contracts by paying attention to words

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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