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Starting Startups - Startups and angels: Along the way to success

Tim Keane

  A low burn rate is a pearl of great price.    It provides lots of options that high burn rates take away.    vesting (of founders stock) is a way for founders to protect themselves from one another.    A low burn rate is a pearl of great price. 

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ProfessorVC: Is There Any Truth in "The Social Network"?

Professor VC

Also, be sure to include vesting for all founders. Bootstrapping 101. It could come back and hit you in the face during a deposition Make sure that your co-founders have the right skills and commitment before doling out equity. If there are any promises (written, verbal or otherwise) regarding equity, address early rather than later.

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ProfessorVC: 4 Lessons of Entrepreneurship

Professor VC

Challenge the Status Quo - StubHub entered an industry dominated by a couple of large players who had a vested interest to block the legality of their business of providing a marketplace for the sale of tickets in the secondary market. Bootstrapping 101. There are going to be a lot of tough times and perseverance is essential.

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ProfessorVC: Survey says VC's invest on Gut Instinct

Professor VC

The point is their opinions werent clouded by any vested interest or lengthy analysis. Bootstrapping 101. Turns out they were right and the statue was fake. Whether this was gut, natural intuition, or some other subconscious analysis from years in the field, it doesnt matter. Watch Out for the Red W(h)ine. ▼ September. (1).

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How much equity for investors and employees?

dondodge.typepad.com

My next post will be about the importance of cash flow, keeping burn rates low, and how to avoid excessive equity dilution. How often are you seeing immediate/accelerated vesting upon change of control? In that case, VC money is used mainly for "acceleration" and not for bootstrapping.

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