Skip to main content

Milk Money for Meebo.com

Here’s something that I highly recommend y’all read:

“milk money…” - parts I, II, & III


It’s an amazingly detailed and honest account of the fund-raising process from someone who raised the money just over a month ago - in December 2005!

One thing that’s not mentioned in the story is the amount raised from Sequoia. I know it’s $3.5 million- straight from the horse’s mouth.

So let’s do the numbers.

$3.5M in Series ‘A’ means anywhere between 20% to 40 % stake was given away, based on how much leverage each party had.

Note that regardless of leverage, any experienced VC will typically want to own *not more than* 40% and *not less than* 20%, “post-money”. [VCs taking more than 40% drastically reduces the founders’ feeling of ownership and thus, their incentive to succeed. Taking less than 20% would mean the VCs will spend very little time or effort on this company- instead choosing to focus on the other companies in their portfolio where they have a greater “interest”.]

... continued in "Startup Valuation: Meebo.com"
Labels:

Comments

Post a Comment

Popular posts from this blog

Splitting User Stories vs. Rally's "split" feature (that has nothing to do with it!)

Agile tool Rally has a "split" feature it recommends to handle "unfinished work" in a Scrum Sprint: Manage Unfinished Work - Split user stories ( new link ) Below are my observations on the "Split" feature in Rally (followed by a few excellent articles on Splitting User Stories):   This "split" feature in Rally has numerous problems: 1. Nothing to do with Splitting User Stories It has nothing to do with "Splitting a User Story" which is an advanced but fairly well-understood field in Agile, and a tool for Product Managers to use in one of the two scenarios: The Product Manager does it before an Iteration commences (i.e. during backlog creation or release planning) to create User Stories by business value that are right-sized, i.e. they can be comfortably implemented inside an iteration; The Product Manager does it in Iteration Planning or in the middle of an Iteration to reduce scope by removing/simplifying accept
Post a Comment
Read more

Entrepreneur Committee - Advisory Board of SVASE

For whatever it is worth, I would like to announce to my millions of would-be readers that I have been invited to join the Entrepreneur Committee on the Board of Advisors to the Silicon Valley Association of Startup Entrepreneurs . And I have accepted. If you're a hi-tech entrepreneur, I would love to hear your suggestions on what I can do in my "official" capacity to make SVASE a better organization for startups.
Post a Comment
Read more

Test Trimming: A Fable about Testing

While browsing the web randomly, I found this very cool article on the value of testing. Says the author, Gerald M. Weinberg: "Throughout my career, I've watched in dismay as one software manager after another falls into the trap of achieving delivery schedules by trimming tests. Some managers shortcut test work by skipping reviewing and unit testing in the middle of their project. Others pressure the testers to "test faster" at the end. And, most frequently, they just drop planned tests altogether, hoping they "get lucky." I've written several essays about the dangers of test trimming, but nobody seems to understand, so I asked myself, "What am I doing wrong?" Perhaps I wasn't practicing what I was preaching. Perhaps I was trimming tests myself. Perhaps my writing needed more testing! So, I wrote a story about taking shortcuts and read it to my granddaughter, Camille."
Post a Comment
Read more