pre-money and post-money

A conversation yesterday prompted me to republish this post from March 2011: A very personal topic that’s unavoidable in every equity investment conversation is that when equity risk investment comes in, a percentage of the company must change hands (otherwise it’s not an equity investment). The investor needs the equity to drive their returns (and through […]

alignment of interests

A difficult and abstract subject to blog about, however the requirement for alignment of interests between investor and entrepreneur in growth capital situations is a firm belief of mine. This alignment is driven by the structure of investment agreed between entrepreneur and investor. Please bear with me! At it’s most basic, I am a fan […]

why investors start at the finish

I have said in a previous post that the true relationship with an investor only starts when the money comes in. This is because the (professional) investor is generally investing with the primary objective to make an economic gain at the end of a defined period. As such, they are very focussed on the finish […]

economic value and percentage equity

A very personal topic that’s unavoidable in every equity investment conversation is that when equity risk investment comes in, a percentage of the company must change hands (otherwise it’s not an equity investment). The investor needs the equity to drive their returns (and through taking some return in equity is sharing the risk with the […]