SoCal CTO
SEPTEMBER 27, 2011
Ben Yoskovitz gets to a similar point In Changing Equity Structures for Early Startup Employees : 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.)
The Next Web
OCTOBER 7, 2013
What you need to consider: - x : percent ownership upon a liquidity event. As stated earlier, investors will dilute ownership upon nearly every round of financing. Are they especially acquisitive? Again this is somewhat simplified as the liquidity event (sale or IPO) may come as cash, stock, or a combination of the two.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Steve Blank
JUNE 23, 2016
Second, the leaders of these companies tended to be those who excelled at finance, supply chain or production. But starting in the last quarter of that century and accelerating in this one, a new form of financing – risk capital (angel and venture capital) — emerged. They knew how to execute the current business model.
Gust
OCTOBER 21, 2011
This week we move on to something near and dear to the hearts of entrepreneurs and investors alike: The exit, more formally known as a “ liquidity event.” Suppose the notes converted as if the acquisition were an eligible financing round. Most would agree this is not a fair outcome.
Steve Blank
JULY 15, 2010
Number of Venture Backed Liquidity Events 1991-2000. The size of the red bars (IPO’s) versus blue (mergers and acquisitions) illustrates that while venture-backed startups did get acquired, the IPO market was booming. Number of Venture Backed Liquidity Events 2000-2010. Take a look at the chart below. (It
Hunter Walker
SEPTEMBER 29, 2022
So for the most part a venture investor holds their equity until the company exits via an acquisition, IPO, or some sort of other liquidity event (management buyout, whatever). These are all rare, but real, and fortunately not anything we’ve dealt with in our firm.
YoungUpstarts
MARCH 11, 2015
This compensation can come in the form of a stock option , a stock appreciation right, or a similar financial instrument, which can potentially be quite lucrative for employees at the time of a merger, acquisition or initial public offering (IPO). A company can have value, even if there is no current income or revenue.
Expert insights. Personalized for you.
391 
Let's personalize your content