rapidrollout.wordpress.com

JANUARY 15, 2011

By deciding to use a consulting CTO on a temporary basis, you avoid getting stalled in the earliest stages. And finally, you may be able to avoid diluting your equity. Preserve your equity by using a consulting CTO to ramp up your company before securing early-stage financing and hiring a permanent technology partner.

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

Both Sides of the Table

SEPTEMBER 5, 2012

This has worked very well in the 2009-2012 time frame because the tech market has boomed in this period. In a standard VC term sheet there is a standard term called an “anti dilution provision” and they are in nearly 100% of deals. You rarely find full ratchets in early-stage deals any more.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

This is going to be BIG.

DECEMBER 28, 2013

YCombinator had a great run from 2007 through early 2009 investing at a time when there weren''t nearly as many seed funds and accelerators as there are now. The classes got too big and quality was diluted because, by PG''s own admission, YC " grew too fast.". YC''s best investing days may be behind it. That''s less than 10%.

Venture Capital 152

Venture Capital Cofounder IRR Dilution 152

www.instigatorblog.com

OCTOBER 23, 2010

I get that the numbers are post Series A, but even if you assume 50% dilution, you're giving your first hire developer between 1-2%. I get that the numbers are post Series A, but even if you assume 50% dilution, you're giving your first hire developer between 1-2%. 1% is even less after you factor in dilution.

Equity 41

Equity Employee Startup Vesting 41

Gust

OCTOBER 8, 2014

There weren’t a lot of seed funds in 2007 so this was often done by angels, funding consortia or sometimes early-stage funds that existed then (First Round Capital, True Ventures, SoftTech VC, etc.). When I first became a VC, seed rounds were typically $500k – $1.5 Why the latter?

Cap Table 136

Cap Table Silicon Valley Term Sheet Non-Compete 136

VC Adventure

AUGUST 30, 2010

I think the answer to these questions are that 1) it’s not at all clear that this trend is as definitive as Graham suggests; 2) it’s a mixed bag for entrepreneurs (more positive in the short run, potentially negative in the long term); and 3) it’s clearly not a positive trend for early-stage investors. Has Convertible Debt Won?

Angel Investor 103

Angel Investor Early Stage Equity Valuation 103

Feld Thoughts

FEBRUARY 28, 2023

However, the lack of a conversion right also has implications for anti-dilution protection: in the U.S., In Germany, anti-dilution protection is achieved by issuing additional preferred shares. In 2022, just as in 2009, there was only one IPO; typically, there are between three and 16 per year. regarding employee issues.

Germany 165

Germany Liquidation Preference Option Pool Advisory Board 165

Professor VC

JANUARY 17, 2008

I guess you can make the argument that the founders keep more of the company under the take angel money at a $1M pre-money valuation, but the stars need to be aligned and it is much more likely that initial VC funding in the angel scenario would be at a lower valuation with significantly more dilution. November 22, 2009 2:03 AM.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

www.startupnorth.ca

OCTOBER 23, 2010

Home Events Contact Jobs StartupIndex Founders versus early employees by David Crow on September 10th, 2009 in Resources Not everyone can be a founder. But for every founder, there is an early employee that takes near equal risks in joining an early-stage company. How many early employees are forgoing salary?

Employee 41

Employee Founder Salary Equity 41

Pascal's View

JANUARY 28, 2010

Startups, the engine of American innovation and an important source of job growth nationally, took a severe beating in 2009 because so few were funded by the venture community. And the issue of equity dilution, always high on the CEO’s agenda, often clashes with the agenda of all venture backers.

Management 53

Management Silicon Valley Virginia Seattle 53

Professor VC

JUNE 20, 2011

While my ownership stake in the company has been diluted through these financings (and the merger with uControl), my carried interest (paper value of my equity) has been going up with each increase in valuation. ► 2009. (7). So what does this all mean. As I said up front, I have mixed emotions about the financing. ► July.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

www.paulgraham.com

APRIL 28, 2010

March 2009 (This essay is derived from a talk at AngelConf.) Dilution is normal. They cant dilute you without diluting themselves justas much. And they wont dilute themselves unless they end up net ahead. So its your choicewhether you get diluted. [ Then its up to themto tell VCs early on.

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63