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Understanding the Valuation Math on the VC Term Sheet

Let’s pretend for a minute that the economy we’ve known and understood for the past ten years is back: we’re allowed out of the house, business is booming, and you’re ready to take your show…

The Latest Changes in VC Deal Terms — Liquidation Preferences

Liquidation preferences are a crucial aspect of negotiating the terms of your VC deal. They are as important as your company’s valuation (and I discuss more about valuation here). A liquidation preference is an economic provision…

The Latest Changes in VC Deal Terms — How to Raise Money

As we’ve discussed in previous posts in this series, there have been some substantial changes in VC deal terms in recent days. If you want to start the series from the top, read my post about…

SPACs In Clean Energy — Not Always A Shell Game

These past weeks have been a perfect storm for the clean energy industry. The cyberhack of the Colonial Pipeline shut down gas stations from Houston to New Jersey, highlighting how fragile our digital infrastructure really…

Why Venture Capital Doesn’t Scale Part 3: How VCs Get Rich, Regardless

In recent blogs, I mentioned that venture capitalists make a great deal of money, regardless of whether a startup succeeds or fails. (That’s why VCs can hop on an occasional train bound for utter disaster and…