Aug 25, 2021
Learning to live with strangers We recently completed an investment in our seventh portfolio company. An exceptional business, great management, but nothing extraordinary about the deal. Except that, in this instance, we have never met any of the founders and... 
Jul 26, 2021
Exit preference – yet more problems down the line In our last post we covered what kind of follow-on round structures were likely to follow, when an earlier round contained exit preference rights. In this post, let’s consider the position when that earlier-round... 
Jul 19, 2021
Exit preference – problems down the line In our last post we briefly introduced exit preference structures and how they work in a first-round of funding. In this post, we are going to take a brief look at how exit preference can work in a second or... 
Jul 15, 2021
Exit preference – simple in theory VCs and some angels like to invest with some downside protection or a built-in return. They can do this in various ways. One way is by using exit preference (sometimes called liquidation preference). The concept is pretty simple,... 
Apr 20, 2021
Dear SaasCo, As discussed during our investment process, to ensure we are in a position to maximise the shareholder value it is essential that we are properly prepared. Being properly prepared isn’t something which happens in the last few months before we decide to... 
Feb 23, 2021
“This round is valued at £6m pre-money. That’s because the last round closed at £3m. Back then, it was just me. Now there are two of us.” Back to valuations and pricing. This post is a brief journey around some of the arguments about why venture and angel... 