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The Acquihire Market for Early Stage Startups is Ice Cold. One Better Strategy? Announce You’re For Sale.

Hunter Walker

Cash is at a premium so it’s not going to cap tables (preferred or common walk away from the deals with no dinero). The majority of typical acquirers (large and small) don’t have incremental headcount budget. Those who do, often believe they can hire from the open market without the hassle of an acquisition.

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VC Optimism Returning But More Pain Ahead In Their Portfolios

Hunter Walker

The reality is lots of companies – many of them quite promising – have already undergone, or will be facing, next financings which “clean up” old cap tables. As The Information proclaims, “ Unicorn Fire Sales Ahead.” Whatever gets reported is just the tip of the iceberg.

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How to Work with Lawyers at a Startup

Both Sides of the Table

Shame about not getting it in legal writing that you owned the original IP. Consider it a sales & marketing expense for them. For company registration, angel deals, Series A & B funding, Employee Stock Option Plans (ESOP), IP filings and even litigation it doesn’t need to be that way.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Some firms provide tools to model investment, e.g., Capital’s Cost of Equity estimator ; Lighter Capital’s Cost of Capital Calculator ; Indie VC’s Cap Table Comparison Model ; 645 Ventures’ cap table simulator ; and Bootstrapp.co’s Comprehensive Cost of Capital Calculator. Flexible VC offers you this.

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Making Decisions in Context

Austin Startup

Of all your hires, if you have commissioned sales people, those will give you the most problems if they’re not all given an equal chance to make their quotas and achieve their personal earnings goals. Your Cap Table is something that deserves constant care and attention. You’ll just never create the sales momentum you need.

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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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Startup Founder Agreements

blog.simeonov.com

It outlines key points of agreement between founders around IP ownership, equity ownership, vesting, etc. For example, without a clear vehicle (a company) to contribute intellectual property into, a founder who walks away may mean that the future company won’t own its own IP. An email would do. The FastIgnite one is two pages.

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