David Teten

SEPTEMBER 6, 2018

See best practices in building financial models , a template financial model , and valuing startup employee options. We also use Carta , which specializes in cap table management and has just launched a fund administration service which we have transitioned to. 8) Monitor and report investments.

Technical Review 60

Technical Review Private Equity Management Cap Table 60

David Teten

SEPTEMBER 6, 2018

See best practices in building financial models , a template financial model , and valuing startup employee options. We also use Carta , which specializes in cap table management and has just launched a fund administration service which we have transitioned to. 8) Monitor and report investments.

Technical Review 60

Technical Review Private Equity Management Cap Table 60

Both Sides of the Table

JANUARY 21, 2010

If you’re a startup and you don’t have a close relationship with a few law firms you’re really missing one of the most important relationships that any entrepreneur can have. I write about some of the lessons in my post on Startup Mistakes. Every town has firms that focus on startups – find them.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Low; a surprising number of Series A/B startups are missing basic financial reporting mechanisms. of startups raise VC. His work on VC and small communities can be found at greatercolorado.vc/blog. Of the Inc. 5000 companies, only 6.5%

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Hunter Walker

MAY 13, 2023

“Worst case scenario we’ll sell to a larger startup or public company for about ~$1.5m I was on both sides of these transactions – buying startups for Google/YouTube and angel investing in high quality technical founders. per engineer.” of the time my answer is no f **g way]. Emotional I guess.

Early Stage 117

Early Stage Cap Table Acquisition Sales 117

Hunter Walker

SEPTEMBER 15, 2023

Like parenting a toddler coming off a sugar high, the last 18 months of startup activity has been marked largely by tears, shrieks, and occasional throwing of toys. Valuations for the Top Decile of Seed Startups Have Fallen Less YoY While the Second Decile Have Been Hit Harder. Gotta own enough of your winners. It’s just math.

Cap Table 93

Cap Table Valuation Salary Seed Stage 93

Hunter Walker

FEBRUARY 2, 2023

Why Pairing Junior Executives With External Mentors Can Accelerate Your Hiring and Their Professional Development Often at a startup it’s better to hire for talent, ambition, and commitment, than years in role or ‘did they have the job already somewhere else.’ Monthly 1:1s and as-needed tactical advice, introductions, and so on.

Hiring 60

Hiring Cap Table Equity Dividend 60

techcrunch.com

APRIL 26, 2013

For Startups And Winning SEC Approval, AngelList Opens Up Investment Platform To More Companies. In December, AngelList , a service that matches early-stage startups with investors, debuted the ability to allow accredited investors to actually invest in startups on the platform with as little as $1,000. Enterprise. Smartphones.

SEC 61

SEC Accredited Investor San Diego New York City 61

Hunter Walker

FEBRUARY 15, 2023

While at the company — and especially once she departed — Claire became one of the people I always hoped to add to a cap table or startup board. On the value of ‘founding documents’ Then the other thing you have is your operating principles or your values or whatever vocabulary you choose.

Cap Table 74

Cap Table Hiring Viral Valuation 74

Gust

JANUARY 30, 2014

Viable business structure and cap table. Startup experience. Operating skills. Invested Interests David Rose entrepreneur funding invest startup' Reasonable valuation. Proven team (tech/product/design/mark eting/sales/domain/etc.). And the attributes I look for in that entrepreneur are: Integrity. Flexibility.

Cap Table 119

Cap Table API Valuation Startup 119

Hunter Walker

MARCH 14, 2019

Then he tells you he likes being an investor but *really* misses being an operator, and is joining another one of his other portfolio companies as COO. Former operators return to operating; GPs trading up (or being managed out); wealth-effect retirements; whole firms dramatically changing strategy. Such as Homebrew.

Cap Table 95

Cap Table Dilution Silicon Valley Portfolio 95

Austin Startup

AUGUST 20, 2017

August 20, 2017: This is another in my series of posts all leading up to a book on Startup Decision Making. One of the most common mistakes I see in startups is making decisions that lose sight of the context , including the past, present, and future. Sooner or later everybody in a startup knows what everyone else is getting paid.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Both Sides of the Table

SEPTEMBER 12, 2013

He first came to see me in 2008 when we was raising money for his 1st startup – NextMedium. Startup DNA. He had made some structural mistakes in NextMedium that meant the Cap Table and leadership team was a bit wacky. We have been on a drive to add more operational partners. The idea immediately resonated.

Partner 340

Partner Los Angeles South Africa Cap Table 340

Hunter Walker

JULY 18, 2021

Before we founded Homebrew I made ~20 or so investments in startups using my own savings. A couple of times I encountered very likable first-time founders who were operating in an interesting problem space but lacked strong product instincts or experience. I Made These Mistakes A Few Times But You Don’t Need To.

Cap Table 140

Cap Table IRR Angel Investor IPO 140

David Teten

AUGUST 19, 2019

The average monthly operating expenses is $70,335. 30% have been operated by females, 70% have been operated by males. 40% have been operated by “visible minorities”, 60% have been operated by “non-visible minorities”. Limited amount of existing debt and a clean cap table”. Growth support.

Revenue 60

Revenue Technical Review Software Review Equity 60

Hunter Walker

DECEMBER 30, 2022

The same can be said of startups and their founders, in the sense that so many things can go wrong in the building of a company to an exit, that success almost seems to be a statistical anomaly [more on how bees fly ]. There’s also many wonderful angel/operators and smaller supporting funds with large portfolio strategies.

Cap Table 67

Cap Table Venture Capital Cofounder Portfolio 67

Hunter Walker

JULY 20, 2019

If you are a check-writing partner at a venture fund and you offer up this sentence to a startup CEO it means one of three things: a) You blew the process by not enrolling your partnership. When I’m on the cap table I can help a founder navigate this to try and avoid going the distance with a potential investor. .”

Partner 92

Partner Cap Table Vertical Portfolio 92

Hunter Walker

JUNE 14, 2018

But Homebrew is founded upon the belief that we’ll put sweat and reputation behind your startup, not just a wire transfer, so to me it seems like a normal question to help understand if you need things that we can, or can’t, provide. The answers I receive typically fall across four categories: 1.

Cap Table 81

Cap Table Portfolio Vertical Reputation 81

OnlyOnce

MAY 26, 2022

So, getting this role right is one of the most important tasks of any startup team. Do you spend a lot of your time dealing with finance-related issues like fundraising, debt, investors, or cap table questions? If you have even a little uneasiness about how your CFO is operating, it’s probably worth heeding.

Cap Table 62

Cap Table Forecast Finance Metrics 62

Hunter Walker

AUGUST 26, 2022

I’m an Ashley Mayer superfan so beyond the affinity, have been fortunate enough to also bring her into Homebrew as an advisor to our portfolio companies, and invest in Coalition , a venture firm she founded along with three other amazing female operators. I tried to get hired at Better Place and failed. Enter Box.

IPO 91

IPO Cofounder Early Stage Portfolio 91

OnlyOnce

FEBRUARY 9, 2022

worked as advisors and mentors to numerous early stage founders and startups. They are typically founder-led, often by a first-time CEO with new or incomplete management teams who need a lot of mentorship/development, and with a diversified cap table of firms that don’t own operating or consulting practices to help guide the scaling process.

Silicon Valley 62

Silicon Valley Venture Capital Cap Table Early Stage 62

Haystack

OCTOBER 2, 2019

Those of us in the early-stage tech ecosystem by now well know that saying “there are a LOT of seed and new startups” is a gross understatement. ” Startups, don’t outsource your BD. Part of being a founder is simply about being able to finance the operation. It wasn’t directed at anyone.

Deal Flow 106

Deal Flow Cap Table Early Stage Institutional Investors 106

Hippoland

OCTOBER 18, 2018

Having run a startup that raised money and now in running a VC, ironically, if I were starting a product company today, I would start out with the mentality of bootstrapping for as long as I could. But, as I’ve mentioned that events businesses can actually have really low operational costs despite what most people think.

Bootstrapping 90

Bootstrapping Cap Table Salary .Net 90

Haystack

AUGUST 18, 2019

You lose influence as larger investors come into the cap table and start throwing their weight around. Back in 2017, Fred Wilson noted the strategic importance of the seed stage , writing: Seed is really hard. You lose way more than you win. You wait the longest for liquidity. It is where most people start out.

Seed Stage 108

Seed Stage Cap Table Early Stage Malaysia 108

Austin Startup

OCTOBER 27, 2017

Common Stock Ask the Users Because we’re known as Startup/VC lawyers who don’t represent VCs (just companies), I often get asked about my thoughts on “founder friendliness.” Founder hostile” VCs are problematic because they push for the perspective of institutional investors to override those of all the other constituents on the cap table.

Founder 48

Founder Cap Table Preferred Stock Common Stock 48

David Teten

SEPTEMBER 23, 2017

In venture capital in particular, early-stage companies are often operating in frontier industries, where the rules are unpredictable and conventional analytic frameworks may be misleading. The only problem that faces startup investors now is how to mine this new data layer efficiently to increase returns.”. are using AngelMob.co

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

ithacaVC

APRIL 10, 2012

Rather, they want their investment dollars used for growing and operating the portfolio company going forward. To put it bluntly, why should a founder, who knows that he/she will have little salary when they start their startup accrue the “lost” salary on the company’s books?

Cap Table 49

Cap Table Pre-Money Valuation Stock Options Due Diligence 49

Hippoland

OCTOBER 18, 2018

Having run a startup that raised money and now in running a VC, ironically, if I were starting a product company today, I would start out with the mentality of bootstrapping for as long as I could. But, as I’ve mentioned that events businesses can actually have really low operational costs despite what most people think.

Bootstrapping 48

Bootstrapping Cap Table Salary .Net 48

Hunter Walker

JULY 19, 2017

The format differs but let’s generally describe Scouts as, individuals using money fully or partially fronted by another VC fund to make investments in early stage companies with hopes of giving the sponsoring fund an advantage in leading a larger round for the startup later on. Best for everyone to understand this upfront.

Founder 69

Founder Silicon Valley Cap Table LP 69

Austin Startup

NOVEMBER 26, 2017

I often suggest that startup founders should think big, on the theory that’s it’s just as easy to tackle a large problem or market as a small one. But, in the modern startup world you do have the tools to move swiftly toward a goal of consequence if you so choose. The barriers to entry in most tech startups are relatively low.

Cap Table 54

Cap Table Leadership Vietnam Georgia 54

David Teten

DECEMBER 3, 2019

I walk through below how progressive investors are using technology and analytics throughout all of their operations. See Bessemer Venture Partners’ A comprehensive guide to security for startups. We are also seeing technology evaluation as an increasingly important part of LP operational due diligence. 1) Manage the firm .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Spencer Fry

APRIL 17, 2017

As a startup in 2017, having limited resources can in and of itself sink your entire ship. There are so many people, products, and startups that are vying for their attention, that it’s harder than ever to rise above the noise. But as an early stage startup, accountability is so important. But that’s for another blog post.).

Bootstrapping 63

Bootstrapping Cap Table Liquidation Preference Cofounder 63

David Teten

AUGUST 21, 2019

There is a huge universe of compelling, growth-focused companies that operate outside of the technology world, and they sometimes don’t get the attention that they deserve from institutional venture equity investors.” . How Tech Startups Can Get Money and Support from the Fortune 500. How to Raise Capital for your Startup.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

VC Adventure

OCTOBER 24, 2018

Reporting is important but often for startup boards not a very good use of the time you have together. Your board doesn’t operate your business – they provide oversight and guidance. I also think this is a bad idea because it sets the tone that your board meeting should be focused on reporting.

Design 91

Design Cap Table Email Operations 91

Hunter Walker

SEPTEMBER 29, 2022

As more growth and crossover investors came into the startup ecosystem they were often eager to put capital to work and happy to consolidate their positions with common or preferred shares from early employees, founders and previous investors. We’re aligned with the founders and the rest of the cap table until we aren’t.

Venture Capital 122

Venture Capital Cap Table LP Equity 122

Hunter Walker

JULY 18, 2022

Why I’m Not Telling Every Startup To ‘Pull The Brakes’ Just Yet. But you need to remain great and investable while also managing your costs, extending your runway, tightening your operating plan, and so on. The former largely means the folks with operating risk are Series A and beyond tech startups selling to other tech companies.

Valuation 116

Valuation Cap Table Startup Later Stage 116

www.paulgraham.com

APRIL 28, 2010

Want to start a startup? A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. Few startups get it quite right. 1 ] A startups life will be more complicated, legally, if any of theinvestors arent accredited.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76