article thumbnail

Corporation or LLC? Business Organizations for Tech Startups.

YoungUpstarts

Typically, investors will be interested in “preferred” stock, which comes with special (aka “preferred”) rights, such as receiving a certain payout before anyone who holds “commonstock. Investment and Acquisition Potential. The ownership structure of an LLC is a blank slate. not to the detriment of any creditors).

LLC 100
article thumbnail

Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

Any custom manufactured IoT device would require software development as well as hardware customization. The shares given out can either be common stocks or preferred stocks. ? Debt investment. These phases are focused on inorganic growth, mergers, buyouts, acquisitions, and exit preparation for the business.

Startup 150
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

Now that Google’s acquisition of ITA is closed, following lenghty FTC review, it would appear Kayak is poised to proceed with their IPO in the coming months. =. Kayak Software Corporation. paying for travel data from ITA or others (customers acquisition spend is not included in COGS). Founding Date: 2004.

article thumbnail

Venture Capital Q&A Session

Both Sides of the Table

The downside is that people need to buy their stock. I talked also about 409a valuations and why common stock purchases cost less than preferred stock purchases. We told the horror story of the company that originally owned the URL groupon.com and lost it due to not having a trademark. Do it early.

article thumbnail

Will Work for Equity - Investing in Clients - Arizona Bay

www.inc.com

Business Software. Last spring, Dave Graham , founder of software consulting firm Arizona Bay, learned that a major client, Jumpstart Automotive Media, had been acquired for more than $80 million. Like a venture capitalist reviewing business plans, he now weighs the potential of every company Arizona Bay works with. Advertising.

Arizona 40
article thumbnail

Why Uber is The Revenge of the Founders

Steve Blank

A version of this article is in the Harvard Business Review. But in the 20th century, dominated by hardware and software, technology swings inside an existing market happened slowly — taking years, not months. While 20th century metrics were revenue and profit, today it’s common for companies to get acquired for their user base.

Founder 274
article thumbnail

How to Fund a Startup

www.paulgraham.com

I wassurprised recently when I realized that all the worst problems wefaced in our startup were due not to competitors, but investors.Dealing with competitors was easy by comparison. Its thesame with acquisitions. Your natural tendency when an investor says yes willbe to relax and go back to writing code.