I just watched (well, really mostly listened to) the video embedded in the article and I highly recommend it.<p>I was involved in VC negotiations during the bubble and was a bit confused about some of the stuff beyond the basics. Luckily, we had good lawyers and my partners were fairly well versed in finance.<p>I've also noticed that many people have are confused about how the corporate governence works. They also talk a little about how the board of directors work and how it interacts with investor rights.<p>Finally, if you're not comfortable with finance, you might need to watch it a few times before you fully understand what they're talking about, but it's well worth it.
This was an awesome post and very informative. I especially liked how he explained that the share pool would come out of the founders pool. That's something important to keep in mind as that's a huge amount of equity!<p>Sometimes I wonder if Mark knows that he could be getting much better deals if he didn't tell us all these things?
Well if you have raised 6 millions and you sell the company for 10 million, and still manage to get 1.6 million, then I think you made a very good deal.