rapidrollout.wordpress.com

JANUARY 15, 2011

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. Reply What To Do When There’s No Venture Capital « Web Startup Help says: January 13, 2009 at 10:42 pm [.]

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

Startup Company Lawyer

MAY 4, 2009

TechCrunch initially reported on the Founder Institute in March 2009. Founders are not expected to quit their day jobs to participate in the program, which starts on May 19, 2009 and ends on September 8, 2009. Applications are due by May 10, 2009. May 19th, 2009: Identify a vision for your business. Applications.

Founder 28

Founder Warrant San Francisco Intellectual Property 28

Both Sides of the Table

APRIL 25, 2011

It’s nearly impossible to get a services company financed by VCs. They have created two internal technology “products&# and wanted to figure out how they could turn their services business into a product business that could be financed. You’re a small fish. This team is talented. They wanted advice.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

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 164

Venture Capital Cofounder IRR Dilution 164

Gust

OCTOBER 8, 2014

Cautionary note: No competent VC is actually fooled when you show up after raising $6M in seed financing and say you’re now raising an A! 5 million was always the classic definition of an A-round between the late nineties (crazy financings aside) and say 2007. Marc Andreessen (@pmarca) October 7, 2014. Why the latter?

Cap Table 136

Cap Table Silicon Valley Term Sheet Non-Compete 136

K9 Ventures

OCTOBER 10, 2017

This post is intended to be a dynamic document, and I will attempt to update it from time to time with new questions that may arise or as financing trends evolve. It is what Seed used to be from 2009-2013, until the Seed rounds got fat and bloated and the bar for raising a Seed round became a lot higher. Q: Define Pre-Seed?

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Both Sides of the Table

SEPTEMBER 5, 2012

Was Paul Graham right in his “high resolution” financing post? 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.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

www.instigatorblog.com

OCTOBER 23, 2010

The more that those first employees feel like founders in terms of their ownership, emotional attachment, responsibility and overall understanding of the startup process (including financing , running day-to-day activities, etc.) 1% is even less after you factor in dilution. 1% is even less after you factor in dilution.

Equity 41

Equity Employee Startup Vesting 41

VC Adventure

AUGUST 30, 2010

Paul himself said in a March 2009 article : “When you hear people talking about a successful angel investor, they’re not saying "He got a 4x liquidation preference." " They’re saying "He invested in Google." Entrepreneurs like convertible debt for some obvious reasons.

Angel Investor 103

Angel Investor Early Stage Equity Valuation 103

Ben's Blog

AUGUST 17, 2020

The conventional wisdom finance professionals are often taught is that you should not pay a higher multiple today than what you’d expect to be paid upon exit — that is, your entry multiple should equal your exit multiple. In 2009, Workday had just 19% gross margin.

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

Ben's Blog

JULY 16, 2013

3/31/2009: 14.5. Smart investors will want the founders and employees to be properly motivated post-financing, so there may be a way to a reasonable outcome for both you and your people. If we took too much dilution, we will work with our new investor to make sure that every employee is still highly financially motivated.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

Professor VC

JANUARY 17, 2008

He then went on to say that this type of financing was good for the entrepreneur (vs taking VC money) because they got to keep more of the company. November 22, 2009 2:03 AM. ► 2009. (7). I also teach Entrepreneurial Finance at San Jose State. This got me scratching my head and ready to open up a debate. Newer Post.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Altgate

DECEMBER 7, 2008

This is one of the striking conclusions of a newly released working paper by Harvard Business School entrepreneurial finance professor Paul Gompers, et al. I would have thought the entrepreneurs would have used their own capital to delay dilution. Think about that. I wouldn’t have expected this.

Venture Capital 44

Venture Capital Marketing Dilution Government 44

Feld Thoughts

FEBRUARY 28, 2023

Corporate law: In Germany, most companies in general and most VC-financed companies are structured in the legal form of a “Gesellschaft mit beschränkter Haftung” (GmbH). Often, this integration results in VC-financed GmbH companies having little to do with the GmbH as envisaged by the law.

Germany 165

Germany Liquidation Preference Option Pool Advisory Board 165

thestartuplawyer.com

FEBRUARY 24, 2010

About the Author Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. North says: June 9, 2009 at 8:50 pm Thanks for this whole blog its the best I have found. Check it out if you haven’t [.]

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

Ben's Blog

JULY 16, 2013

3/31/2009: 14.5 Smart investors will want the founders and employees to be properly motivated post-financing, so there may be a way to a reasonable outcome for both you and your people. If we took too much dilution, we will work with our new investor to make sure that every employee is still highly financially motivated.

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

Professor VC

JUNE 20, 2011

Financing, that is.I One truth of start-up financing is that it generally takes twice as long and twice as much money to accomplish your milestones. Most companies dont come close to their rose colored financial models prepared when going out for Series A financing. As I said up front, I have mixed emotions about the financing.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

This is going to be BIG.

SEPTEMBER 25, 2018

Personal finance is a thing that no one likes to talk about. When I joined First Round Capital in October of 2009, I limped in with about $31,000 in credit card debt and no immediate savings. That’s when things really went off the rails and my debt started to pile up.

Salary 114

Salary Cofounder Dilution Finance 114

venturehacks.com

OCTOBER 21, 2010

Reading on, the term sheet states, “The $8 million pre-money valuation includes an option pool equal to 20% of the post-financing fully diluted capitalization.&# First, the option pool only dilutes the common stockholders. That does work if the company gets sold before another round of financing.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Both Sides of the Table

MARCH 30, 2016

Invoca had grown steadily and consistently since 2009 and by 2015 SaaS companies with scale had become hot – trading at a median of 7.3x Great companies get financed. They had to focus on getting a “W” one day over the short-term dilution impact of raising at a price lower than they had set out to achieve.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

Both Sides of the Table

FEBRUARY 14, 2016

As you can see below, investments have skyrocketed – up 300% since 2009. In 2009 many deals got done at $4-5 million pre and in the past few years some of these deals have gotten done at $10-12 million pre (or higher). Why Financing in Falling Markets is So Damn Difficult. And so it goes.

Valuation 150

Valuation Down Round Startup Later Stage 150

venturehacks.com

MARCH 21, 2008

If your company hasn’t raised a Series A, increase the advisor’s equity by roughly 30%-50% to account for dilution from seed investors, Series A investors, option pools, swimming pools, and the like. SKMurphy » Common Questions about Advisory Boards - Jun 2, 2009 [.] Does this stake need to have vesting schedule?

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44