Slides from the Venture Capital Bootcamp event hosted by DFJ Gotham Ventures and Wilson Sonsini Goodrich & Rosati at Columbia University on June 3, 2009. A video of the 3 hour event is available at www.dfjgotham.com.
70. Typical Dilution Metrics Financing stage Amount Raised Dilution Seed – develop beta product, develop plan $50k - $1m 15-30% A – complete initial product, build initial team $1m-$5m 40-60% B – bring product to market, complete team $5m-$15m 25-35% C – expand sales and marketing, working capital for liquidity event $10m-$25m <20%
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75. Liquidation Preference Example of Fully Participating Preferred (assumes $100m sale price and $25m invested) Shares % o/s Liquidation preference Payment of remainder Total proceeds A 3,500,000 23.33% $3,000,000 $17,500,000 $20,500,000 B 4,000,000 26.66% $7,000,000 $20,000,000 $27,000,000 C 3,000,000 20.00% $15,000,000 $15,000,000 $30,000,000 Common (founders) 2,500,000 16.66% N/A $12,500,000 $12,500,000 Option pool 2,000,000 13.33% N/A $10,000,000 $10,000,000 Total 15,000,000 100.00% $25,000,000 $75,000,000 $100,000,000