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The Pinboard Investment Co-Prosperity Cloud

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Re: The Pinboard Investment Co-Prosperity Cloud

#81

Post by jarek »

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…

Thanks! I'll reiterate obilgic's question since I don't know if your showdead is on: what is the ownership situation before, or in absence of, subsequent fundraising? Would a company be considered automatically split into some number of shares at some point?

Re: The Pinboard Investment Co-Prosperity Cloud

#83

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

#84

Post by wilfra »

jarek wrote: post #81
wilfra wrote: post #72

Earlier quoted context omitted.

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…

Thanks! I'll reiterate obilgic's question since I don't know if your showdead is on: what is the ownership situation before, or in absence of, subsequent fundraising? Would a company be considered automatically split into some number of shares at some point?

Then it's typically a loan with a pre-defined interest rate.

A convertible note does not buy equity - thats what 'convertible' means - and 'note' means 'loan'. So it's a loan that can convert to equity based on certain conditions.

As I said, all of this is overly simplistic. It's just a 30,000 foot overview.

Re: The Pinboard Investment Co-Prosperity Cloud

#85

Post by toomuchtodo »

benatkin wrote: post #38
jspthrowaway2 wrote: post #22

Earlier quoted context omitted.

I like where this is going. The next step is $5,000, then we've entirely lost the plot.

We're only up to $87 so far in my book. Pinboard and tptacek are legit; toomuchtodo has yet to show us credentials.

Already replied to this comment, but what the heck, I thought about what you said and had some more to add (since my original posts were "ha ha" funny, or at least I thought so).

I don't have startup credentials. My last startup was 10 years ago; I built a hosting company and sold it to a consulting firm for a couple hundred grand. I'm still in IT, so I clearly haven't made enough to cash out yet (I'm an IT operations lead; paid well, but definitely not F-you money).

I'll offer something better though; come to me with an idea I believe in, something that is going to change the world for the better. I'll provide free room and board for six months while you build it (my wife and I aren't great cooks, but practice makes perfect). If you get huge, awesome. I don't want any equity, I just want you to succeed. If it doesn't work out, head on over to a code school in SF that guarantees you a high five figure salary after your time with them.

I can't offer credentials; I can offer to give what I can to help someone reach their goals/dreams. The startup scene needs an airbnb.com for founders who don't need cash, just time and a place to live, and for people who are willing to host said founders at no (or very little) cost to help with their goals.

startupbnb.com?

Re: The Pinboard Investment Co-Prosperity Cloud

#87

Post by whichdan »

stevewilhelm wrote: post #80
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!

Unless Heroku has changed, you absolutely should not host a production site using a free account. If your site doesn't get any traffic for a certain period of time, they spin down your instance. This means that the next subsequent view will have an abnormally long load time as they wait for your EC2 instance to spin back up. The $20/mo at Rackspace (or any other provider) is well worth it.

Re: The Pinboard Investment Co-Prosperity Cloud

#88

Post by eropple »

bcbroom wrote: post #78
codewright wrote: post #61

Earlier quoted context omitted.

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.

Haha. That's funny.

You think real programmers need needles.

Or hands.

Re: The Pinboard Investment Co-Prosperity Cloud

#89

Post by pmarca »

bravura wrote: post #71
pmarca wrote: post #43

Earlier quoted context omitted.

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-investin…

If our $50 participation hampers your A round, we will bridge you with another $15.
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