Remove Acquisition Remove Finance Remove Liquidation Preference Remove Startup
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Equity for Early Employees in Early Stage Startups

SoCal CTO

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. The first few people into a startup are on a spectrum of founder vs. early employee. I've talked about this topic before in How Investors Think About Valuation of Pre-Revenue Startups.

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Angel Investing 4 – Why You Need Deep Pockets to Win Big

Both Sides of the Table

As I’ve highlighted I believe we’re in a unique period similar to 2005-08 where the biggest tech firms of Silicon Valley (and some media companies) are scooping up small software companies as “talent acquisitions&# versus accretive revenue / profit generators. Tags: Startup Advice Tech Market Analysis VC Industry.

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Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

Mark Suster wrote a great post yesterday titled The Resetting of the Startup Industry. I watched, participated, and suffered through every type of creative financing as companies were struggling to raise capital in this time frame. Until you are consistently generating positive cash flow, you depend on someone else for financing.

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Should Entrepreneurs Attend Business School?

Up and Running

Additionally, I had already studied Economics and Finance during undergrad, making the academic part of an MBA seem a little redundant. C Corp versus LLC, non-competes, liquidation preferences, preferred versus common stock, and so on). It helps mitigate startup risk. Is business school really necessary?

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Memo to CEOs & Founders: Stop Being Such Cheap Bastards

techcrunch.com

This is an anonymous guest post from a well known startup executive: When we split the atom, Einstein remarked that everything changed but our way of thinking. You could make the same argument about acquisitions and option pools. This has always been true, but now that more startups are being bought, it has become less common.

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Acquihires 101: Tips for Founders

Scott Edward Walker

We had a busy 2018, including closing several significant M&A transactions and financings. An acquihire is essentially the acquisition of a startup for its talent/team (rather than for its products or services). The acquirer is typically a large successful company, and the target is typically a failing early-stage startup.

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Using warrants to pump up your VC valuation

www.mattbartus.com

Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. This is usually done when the company is acquired — if the acquisition price per share of Series A is greater than $0.50, the VC will receive the spread between $0.50 and the acquisition price.

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