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Sell at the top? Avoid the race to zero!

Berkonomics

So, the question: load up with more equity and dilution? For young companies, often the question is whether to suffer a new round of dilution to stimulate growth, or to sell earlier and not share the (presumably) increased proceeds with additional investors. Or sell now?

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Containing Growth Chaos: Five Things To Do When Your Company Is On The Upswing

YoungUpstarts

You’ll be inundated with sales pitches, lame template emails, unsolicited voicemails and more. But take it from what a good friend and advisor once said to me: “Ego is dilutive to net worth.”. Miles Advisory Group was founded in late 2010 with eaHELP and MAG Bookkeeping quickly developing into distinct brands.

Cofounder 100
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A VC: Employee Equity: How Much?

www.avc.com

Nov 22 , 2010. The other important data point is the number of fully diluted shares. Then you divide the dollar value of equity by the "best value" of your business and multiply the result by the number of fully diluted shares outstanding to get the grant amount. Musings of a VC in NYC. MBA Mondays Archives.

Equity 64
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Ted Rheingold Founded Dogster in 2004: Five Questions About Building a Startup, Selling a Startup and Whether SF Is Still a Good Place

Hunter Walker

By the end of 2004 I had brought on two co-founders: John Vars – who is now the Chief Product Office at TaskRabbit, and Steven Reading took over Sales and Revenue. From the middle to 2005 to early 2010 the business was break-even or better every quarter.

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Strategy Roundtable: Open Opportunities in Cloud Computing and Rural BPO

ReadWriteStart

You can get cash without diluting your ownership in the company. Kristen is doing about $70,000 year-to-date, and expects to hit $200,000 for the 2010 fiscal year based on her holiday sales projections. Shirish had a pricing model question, as well as a set of go-to-market and sales strategy questions.

Cloud 115
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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

If new investors get better rights in a future equity financings (such as registration rights, price-based anti-dilution, redemption rights, etc.), Anti-dilution protection. Deleting anti-dilution rights saves several pages of text in the Certificate of Incorporation. Co-sale rights. Future rights. Self-explanatory.

Finance 70
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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Bottom Up Market Sizing » January 12, 2010. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues. This results in a range of sale prices; in this example from $118.6MM to $21MM. Let’s start at the end.