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VC Optimism Returning But More Pain Ahead In Their Portfolios

Hunter Walker

Satya and I were having lunch (yummy Chinese food) with our LPAC and the conversation turned to generally “how much more did venture portfolios have to fall before they found their true current value?” And fascinating new advances (and needs) in AI, climate, biology, etc are driving tech-IP driven startups.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Yes, via conversion rights at a valuation cap. 2-5x return cap + path to uncapped equity returns. Yes, via conversion rights at a valuation cap. Profitability is prioritized : The revenue that is going to grow the company immediately is the same revenue that is going to get investors to their return cap.

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How to Work with Lawyers at a Startup

Both Sides of the Table

You never got around to agreeing exact equity splits but you had many conversations about it. Shame about not getting it in legal writing that you owned the original IP. So eventually you have your company funded but only 2 of the 5 people who started the company are still around.

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Making Decisions in Context

Austin Startup

Your Cap Table is something that deserves constant care and attention. Messy cap tables can come back to haunt you when you do a financing or sell the company. If you’ve got patent or other IP needs, you may want to engage specialists in those areas. Keep the valuations consistent with company progress.

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Dear elizy: How should I split equity with my co-founders?  And how will that affect raising a seed round?

Hippoland

Ada is my professor, and we are using her lab, and the company is based on her research, though the IP is assigned to the company. You will have tremendous difficulty raising money with this kind of cap table, and investors will make you restructure your cap table. Let’s call them Ada and Bob.

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The General Contractor for Startups

Austin Startup

The General Contractor for Startups was originally published in Austin Startups on Medium, where people are continuing the conversation by highlighting and responding to this story. We raised significant capital at a high valuation based on his credibility, and he certainly was entitled to call the shots on decisions like that.

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