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The Pinboard Investment Co-Prosperity Cloud

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Re: The Pinboard Investment Co-Prosperity Cloud

#71

Post by bravura »

pmarca wrote: post #43
tptacek wrote: post #7

I would like to take this moment to announce PICPC-VC, which is an automatic follow-on investment, structured as uncapped convertible notes, of $50 available to any founder accepted into the PICPC program.

Andreessen Horowitz will match your $50 with another $50.

Does that mean that recipients can legitimately tell the press and other investors that a16z is one of their investors?

Assuming that the recipient can keep a straight face?

EDIT: Perhaps having a16z as the only VC in your seed is a very bad idea. Chris Dixon (now a partner at a16z) cautions enterpreneurs against the risks of having a sole VC in your seed round:

http://cdixon.org/2012/04/02/revisited-big-vcs-investing-in-...

"I can think of about 15 founders I’ve spoken to recently who tried or are trying to raise Series As but are seriously hampered by the fact that a big VC invested in the seed round but isn’t participating in the Series A."

Re: The Pinboard Investment Co-Prosperity Cloud

#72

Post by wilfra »

jarek wrote: post #66
tptacek wrote: post #7

I would like to take this moment to announce PICPC-VC, which is an automatic follow-on investment, structured as uncapped convertible notes, of $50 available to any founder accepted into the PICPC program.

Can someone more in touch with corporate finance explain what an uncapped convertible note means for ownership and operation of a company? Serious question.

In overly simplistic terms:

That $50 would be converted into stock at the time of their next fundraising. Uncapped means there is no cap on the valuation at the time of the next round. So if one of the founders raised money at a $100,000 valuation later, the $50 investor would get 50/100,000th of the shares.

If it were capped, say at a $50k valuation - the investor would get 50/50,000th of the shares, regardless of the valuation.

Re: The Pinboard Investment Co-Prosperity Cloud

#73

Post by [deleted] »

wilfra wrote: post #72
jarek wrote: post #66

Earlier quoted context omitted.

Can someone more in touch with corporate finance explain what an uncapped convertible note means for ownership and operation of a company? Serious question.

In overly simplistic terms: That $50 would be converted into stock at the time of their next fundraising. Uncapped means there is no cap on the valuation at the time of the next round. So if one of the founders raised money at a $100,000 valuation later, the $50 investor would get 50/100,000th of the shares. If it were capped, say at a $50k valuation - the investor would get 50/50,000th of the shares, regardless of t…

[deleted]

Re: The Pinboard Investment Co-Prosperity Cloud

#74

Post by obilgic »

wilfra wrote: post #72
jarek wrote: post #66

Earlier quoted context omitted.

Can someone more in touch with corporate finance explain what an uncapped convertible note means for ownership and operation of a company? Serious question.

In overly simplistic terms: That $50 would be converted into stock at the time of their next fundraising. Uncapped means there is no cap on the valuation at the time of the next round. So if one of the founders raised money at a $100,000 valuation later, the $50 investor would get 50/100,000th of the shares. If it were capped, say at a $50k valuation - the investor would get 50/50,000th of the shares, regardless of t…

What if they don't raise any more, and start to make profit immediately?

Re: The Pinboard Investment Co-Prosperity Cloud

#75

Post by jaggederest »

jarek wrote: post #69
rdl wrote: post #63

Earlier quoted context omitted.

Fortunately opportunity costs can be paid in equity. Rent, car insurance, and groceries can't.

You just need a more risk-seeking landlord and grocer.

When I close on my house, I'll have to offer housing-for-equity. I wonder if that works.

Re: The Pinboard Investment Co-Prosperity Cloud

#76

Post by rdl »

jaggederest wrote: post #75
jarek wrote: post #69

Earlier quoted context omitted.

You just need a more risk-seeking landlord and grocer.

When I close on my house, I'll have to offer housing-for-equity. I wonder if that works.

During the 1998-2001 bubble, landlords (and lawyers, etc.) wanted warrants on top of normal (inflated) cash costs.

Re: The Pinboard Investment Co-Prosperity Cloud

#78

Post by bcbroom »

codewright wrote: post #61
notJim wrote: post #60

Earlier quoted context omitted.

Ha, I'm aware that if you're careful, you can do it, but I was more thinking of a python or ruby stack with MySQL (or whatever) that most people would use :).

MySQL and Ruby could be made to work. (on 128mb of ram)...concurrency would be awful though. I was trying to be lean. Ruby users are quiche eaters anyway. Real programmers write their code in Fortran and persist to a hierarchical database on a mainframe.

Real programmers use a magnetic needle and a steady hand.

Re: The Pinboard Investment Co-Prosperity Cloud

#80

Post by stevewilhelm »

danielpal wrote: post #40

It does seem like cost are negligible today, but on deeper analysis theres a lot of costs beyond simply hosting. Just from memory for my startup (Authy.com), initial costs were: Domain: $1000+ Design: $3000 Video: $3000 Hosting: $400 Depending on your skills this initial costs will vary. An although I agree you don't need external investment to cover them, you should at least plan to invest $10,000US to cover your in…

When hosting on Heroku, first dyno per app is free!
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