Do you track liquidation scenarios in your startup?

By rickColosimo / February 1, 2011 /

Fred Wilson has had a series of posts relating to M&A transactions, generally revolving around case studies. This one on ChiliSoft describes how certain features embedded in the capitalization table (liquidation preferences and floating price warrants), coupled with being acquired for shares rather than cash led to a seemingly dramatic erosion of value for the…

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What happens when nonpublic information is shared?

By rickColosimo / December 20, 2010 /

Answer: it becomes regular useless information, arbitraged away by the market. (Unless you don’t believe in the efficient market hypothesis, in which case you’re reading the wrong blog! The only way to live in between those two things is to believe that you understand the mechanics of value differently or better than the market and…

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Replace missed donations with pledges

By rickColosimo / November 21, 2010 /

This WSJ article describes the potential fallout to nonprofit organizations from projected changes in tax rates. If personal income tax rates are going to increase, then, as the article states, it make sense to defer donations until the years when the value of the tax deduction is increased. (To the donor, that return is all…

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Principles of War: Mass

By rickColosimo / November 11, 2010 /

Our first principle to convert from military to mainstream business usage is Mass. Here’s the original: Mass – Concentrate combat power at the decisive place and time What mass means from the military perspective is that you bring together whatever forces are necessary to achieve a desired result. An example would be moving forces from…

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