Thoughts. The Startup Lawyer: Startup Law, Incorporation, Convertible Note. Venture Capital Deal Algebra. Fred Wilson wrote a useful post on valuation today.
It reminded me of a document I had Dave Jilk write when he was doing some work for me. I decided to write this “bladon” (Blog Add-on) post – inspired by Fred. Please read Fred’s post first – it lays the groundwork for why VCs do things this way. I’ve found that even sophisticated entrepreneurs didn’t necessary grasp how valuation math (or “deal algebra”) worked. Startup Company Lawyer.