Right of First Refusal: The Clause That Can Lock You In or Kill Your Deal
Right of First Refusal: The Clause That Can Lock You In or Kill Your Deal A $250M acquisition died because a seed-stage investor exercised their ROFR. The buyer walked. The seller waited 30 days for a match that was...
Advisory Shares: Why 90% of Them Are Worth Nothing (And When to Take the Deal)
Advisory Shares: Why 90% of Them Are Worth Nothing (And When to Take the Deal) Run the math. A pre-seed advisory grant of 0.225% equity, at a startup with a 15% chance of surviving, sold at a 6x exit multiple on a $1M...
SAFE Notes vs Convertible Notes: One Protects Founders, One Protects Investors — Know Which Is Which
SAFE Notes vs Convertible Notes: One Protects Founders, One Protects Investors — Know Which Is Which Y Combinator created the SAFE in 2013 to make fundraising faster. It worked. It also shifted ALL the downside risk to...
Advisory Shares Explained: What Angel Investors Need to Know Before a Startup's Cap Table Matters
According to Carta's H1 2024 compensation data , the median pre-seed advisor equity grant is 0.21% of fully diluted shares, down from 0.25% in prior years. Only 10% of pre-seed advisors receive 1% or...
Advisory Shares: What Every Startup Advisor Should Know Before Signing
A founder called me last year. She had given 2% of her company to a "strategic advisor" who showed up to three Zoom calls and then disappeared. No deliverables. No introductions. No accountability. Just 2% of her cap...