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Startup School

Hutch Fishman

CFO, cMarket; CFO, Veveo

Founding CFO of:

Formerly Senior manager at Deloitte & Touch

Financing Stages

seed

first round

second round

third round

fourth round / mezzanine

Some VC's only do 1st round financing.

Type of investment / equity

common stock

preferred stock

goal: get current market terms

advice: get a really good lawyer

Dilution impact

what happens when you go to a financer

sample first round financing * $5M pre-money valuation * $5M series A preferred financing * $10M post-money valuation * $1.00 price per share

Liquidity events

acquisition

IPO

Pricing of stock

investors pay FMV

founders

employees

vesting for founder / employees

banks / venture leasing companies

available financing

other consideration

equity participation

budgets

Very Important!

operating

capital

equity

all budget should be done in advance of fiscal year

professional firms

legal

accounting

you really need to have a liquidity event before you use other international firms.

questions