Remove .Net Remove Government Remove Institutional Investors Remove Venture Capital
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What type of entity should I form?

Startup Company Lawyer

C corps, LLCs, and S corps differ significantly in the areas of taxation, ownership, fundraising, governance and structure, and employee compensation. Any company that raises venture financing will need to be a C corp in order to issue preferred stock. Such inflexible features are typically unattractive to venture investors.

LLC 61
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Where Do Venture Capital Dollars Actually Come From? This Visual Explains

Agile VC

Most folks reading this will know that many startups were built in part with the help of venture capital. A smaller portion of the total capital in the VC ecosystem comes from high net worth individuals. The third reason is less in the hands of these institutional investors, and that’s governance.

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Where Does VC Money Actually Come From? [Flowchart]

View from Seed

Most folks reading this will know that many startups were built in part with the help of venture capital. A smaller portion of the total capital in the VC ecosystem comes from high net worth individuals. The third reason is less in the hands of these institutional investors, and that’s governance.

LP 335
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IPO Task Force Leader: JOBS Act a Wake-up Call for Startups

ReadWriteStart

This from Kate Mitchell, the former chair of the National Venture Capital Association, and current Managing Director of Scale Venture Partners. During a 25-year span of time until 2005, their final report noted, nearly all net job growth in the U.S. That is a short-lived strategy, and a wrong-headed strategy."

IPO 118
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Knowledge Is Power: Convertible Note Financing Terms, Part V

Gust

I have to admit my West Coast bias here, having learned the ropes at a large Silicon Valley firm ; it makes little sense to me to have investor’s counsel drafting documents that are woven into the fabric of a company’s governance and capital structure, with which the company will likely be living for years after the investment is made.

Finance 79
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Electing a Truly Independent Director

Austin Startup

TL;DR Nutshell : There are few governance-related decisions with a more outsized impact on a company’s power structure than the selection of an independent director. But institutional investors have a job to do, and it’s not to be your BFF. Do not take that selection lightly. They will educate you, off the record.

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Customers Love Free Stuff … But That’s Not Your Problem

abovethecrowd.com

Would that help retention and NPS (Net Promote Score)? On the demand side, the IPO process is limited to a handful of institutional investors and also ignores the vast majority of retail investors. Many, many more investors are locked-out of the process than are invited to participate. Would they be loyal?

IPO 82