gdp's Comments

LearnVC.com - Your guide to raising capital : VCIC 2009: Due Diligence Q&A session, Part 1

Fri, 20 Mar 2009 16:05:57 +0000

Absolutely ask about projected number of future rounds, as well as estimated timing of these rounds. I just wouldn't spend too much time on this subject as there is only 15 minutes and entirely too many high priority areas to go into.

LearnVC.com - Your guide to raising capital : Pre-money Valuation

Thu, 11 Dec 2008 15:10:44 +0000

Hi Rachel, thanks for the comment/question. It appears that the root of your question is about control of your company. The short answer is that 50.1% ownership of the company does not necessarily give you control. Investors usually receive preferred stock, which has special rights over common stock (which is what you own). I would recommend reading the articles in Term Sheets, especially on voting rights and protective provisions.

VChub.com : Business Model: Your TAM, Product Roadmap, and Revenue Model

Tue, 11 Nov 2008 20:18:16 +0000

Hi Healy, thanks for stopping by and commenting. I was attempting to coach people away from general market statements and instead focus them on TAMs in general. My comments about the product roadmap were a bit incomplete, as you mentioned. I was focused only on the business model aspect as related to TAM and revenue models, and not on the market need / pain points.

VChub.com : Liquidation Preference

Thu, 6 Nov 2008 14:50:27 +0000

Hi graf, to answer your question the investor may set a high liquidation preference mainly focused on protecting themselves in case the valuation is set too high (the opposite from your question). If an entrepreneur insists on a high pre-money valuation, the investor can utilize another lever like liquidation preference (especially when combined with Participating Preferred Stock) to adjust the effective price to what they desire. Another reason might be that the current "standard" terms for the market are just high. When the economy is bad, the liquidation preferences sometimes go up because of the market volatility.

VChub.com : Welcome to our new visitors

Wed, 5 Nov 2008 13:48:10 +0000

Thanks for the feedback! We are planning to add more and more graphical illustrations, gradually increasing in complexity. I agree with the need for an ability to perform dilution, return and risk calculations. Hold on for more news in the next few months, I think you'll be pleased with what you hear from us.

Ask the VC : LearnVC - A Web Resource About Venture Capital for Entrepreneurs and Investors

Mon, 3 Nov 2008 22:09:46 +0000

Brad, thanks for the supportive post and the great content.

VChub.com : Welcome to VChub.com

Mon, 4 Aug 2008 07:08:30 +0000

Just a test comment.