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In 2017, GE Will Buy More Tech Startups Than Google

Hunter Walker

The total value of these deals might look higher than when a tech company makes an acquihire but the premium tends to go to retention rather than the cap table (especially since (a) the acquirer might not be seen as an ‘attractive’ place to work and (b) there’s assumption of less equity upside post-acquisition).

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

Hunter Walker

The proverbial win-win-win: founders got to land their company often with some retention premium; employees got job offers; and we got capital back, that even if it wasn’t a power law return, allowed us to recycle into new investments or the existing portfolio. of the time my answer is no f **g way].

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Making Decisions in Context

Austin Startup

Compensation decisions obviously affect hiring and retention. 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. Sooner or later everybody in a startup knows what everyone else is getting paid.

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An Alternative to Board Decks Some Seed VCs Actually Prefer

View from Seed

Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferred stock dashboard. So, for this section, list 3-5 metrics, along with relevant data points, charts, graphs, or tables.

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Customers Love Free Stuff … But That’s Not Your Problem

abovethecrowd.com

Would that help retention and NPS (Net Promote Score)? These are the parties on the cap table prior to the transaction. Why would a founder or CEO want an investor on the cap table who was only interested in “paying attention” to the company if there is a large, free, one-day incentive? Would they be loyal?

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What Acquihire Really Means

Feld Thoughts

Then acquires started using the concept of acquihire to try to shift consideration away from the cap table and instead increase the amount of “retention consideration” going to the remaining employees, independent of the capitalization of the company.

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10 Startup Red Flags

adamac.blogspot.com

Maybe the CEO got his cousin from Omaha to be their lawyer or theres been some serious messing around with the cap table. Maybe there were layoffs, which isnt a great sign, but it probably indicates a serious retention (i.e. If you get an option grant for a million shares and youre employee 25, something is funky.