Startup Professionals Musings

OCTOBER 26, 2020

None normally work for or provide funds for early-stage startups. Typically, their service is to help you invest in stocks, bonds, or mutual funds, much like independent financial advisors. Many investment banks even call themselves “boutiques.” Commercial banking is also known as business banking.

Silicon Valley 362

Silicon Valley Private Equity Initial Public Offering Term Sheet 362

Both Sides of the Table

JULY 29, 2010

Mike Stern (wasn’t sure which one so leave a comment if it’s you): Q: “is it possible to sell your startup without venture investment if the company has big traction and a large user base?&# In fact, far better if you haven’t raised venture capital. The downside is that people need to buy their stock.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

VC Adventure

AUGUST 15, 2018

Back in the olden days of venture capital, company boards had wide discretion in pricing company options. As is true today, there was a requirement that options be priced at or above the “fair market value” of the underlying stock (otherwise there would be tax consequences to the optionee and sometimes to the company as well).

Valuation 48

Valuation Common Stock Cap Table Software Review 48

The Startup Magazine

NOVEMBER 22, 2019

Index funds track one of the stock indexes, such as the NYSE or the S&P 500. As you become savvier, you may also want to add different mutual funds like international or mid-cap stocks. Buying an individual stock carries quite a bit more risk than an index fund. Understand the Risks. Learn About Investing. Be Patient.

Stock 136

Stock Portfolio Matching Dividend 136

Startup Professionals Musings

SEPTEMBER 10, 2013

None normally work for or provide funds for early-stage startups. Typically, their service is to help you invest in stocks, bonds, or mutual funds, much like independent financial advisors. investment bank entrepreneur startup funding IPO' Many investment banks even call themselves “boutiques.” Marty Zwilling.

IPO 205

IPO Silicon Valley Private Equity Initial Public Offering 205

Startup Company Lawyer

MAY 13, 2009

One proposal would dramatically improve the treatment of “ qualified small business stock &# issued after February 17, 2009. If enacted, this would significantly enhance the tax incentives currently available for qualified small business stock. ELIMINATE CAPITAL GAINS TAXATION ON INVESTMENTS IN SMALL BUSINESS STOCK.

Capital Gains 47

Capital Gains Stock Small Business Redemption 47

Gust

JULY 31, 2012

Editor’s Note: For a great tip on unloading private stock, read this post about how you can donate it.d. Amidst all the talk of failures and exits, we forget there are actually three possible outcomes for angel-backed startups. Most angel investors hold an ownership position in a few companies that have no exit opportunity.

Exit Strategy 135

Exit Strategy Angel Investor Capital Gains Startup 135

Startup Professionals Musings

JANUARY 22, 2011

None normally work for or provide funds for early-stage startups. None of these investment banks offer traditional banking services, as you would expect from one of the following: Retail banks Commercial banks Credit unions Savings and loans As startup founders, you first need to deal with one of these banks, probably a commercial bank.

Silicon Valley 211

Silicon Valley Private Equity Initial Public Offering Startup 211

YoungUpstarts

JANUARY 26, 2017

Thanks to the considerable tax write-offs available for intangible drilling costs (IDCs) and tangible drilling costs (TDCs), oil and gas investing can drastically lower your tax bill — even when compared to investing in the more traditional stock or real estate markets. Stock and Real Estate — What Most CPAs Have Heard of.

CPA 100

CPA Capital Gains Stock LLC 100

Both Sides of the Table

NOVEMBER 4, 2009

This is part of my Startup Advice series. at a startup that has already raised $5 million the chances of you making your retirement money on that company is EXTREMELY small. OK, you would own 0.25% of the stock. That’s an after-tax gain of $287,500 / year for 2 years. Stock vests for 4 years. That’s Ok.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Startup Professionals Musings

JANUARY 31, 2010

None really provide funds for early-stage startups. None of these investment banks offer traditional banking services, as you would expect from one of the following: Retail banks Commercial banks Credit unions Savings and loans As startup founders, you first need to deal with one of these banks, probably a commercial bank.

Silicon Valley 120

Silicon Valley Private Equity Startup Initial Public Offering 120

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 2 Stock Classes: Common and Preferred. 5 Stock vs Options. 6 Founders / Restricted Stock. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers.

Equity 56

Equity Employee Vesting Preferred Stock 56

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? Like any promissory note, it bears interest (usually at a nominal rate) and has a maturity date on which the loan must be repaid if it hasn’t been converted to stock (typically around 18 months). Convertible debt? Convertible equity? How can this possibly make sense?

Finance 134

Finance Convertible Security Equity Seed Stage 134

Scott Edward Walker

DECEMBER 14, 2015

One of the biggest mistakes I see startups make is failing to set-up vesting schedules for the founders. Below is a short clip from my legal workshop “ The 5 Biggest Legal Mistakes That Startups Make ” and a few FAQ’s. The typical founder schedule vests an equal percentage of stock (25%) every year for four years on a monthly basis.

Vesting 40

Vesting Founder Stock Cofounder 40

www.seriesseed.com

DECEMBER 9, 2012

Good idea, I think this will benefit lots of startups and some angels. Locks in rights, preferences and priviledges of the stock. Long term capital gains possible for early exit. This is all built into a typical founder stock purchase agreement. Ted: Great service to the startup community! This is great!

Finance 40

Finance Term Sheet Vesting LLC 40

Scott Edward Walker

APRIL 9, 2012

Venture capital funds, seed funds, super angels, angel groups, incubators, and “friends and family” are all playing the seed financing game and investing early in startups in an attempt to land the next Facebook. Why Can’t a Startup Issue Shares of Common Stock to Investors?

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

K9 Ventures

MARCH 23, 2011

It’s a tough tough job to be running a startup and you need to have people who are willing to listen, provide useful input, and sometimes a different point of view. When an investor buys equity in a priced round, the capital gains clock on that stock starts as of the date of investment. and it is a positive outcome.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

K9 Ventures

NOVEMBER 21, 2011

Let’s say you’re the founder (I use a solo-founder in my example to keep things simple, but this could just as well apply to a founding team) of a startup called Blood, Sweat and Tears, Inc. They want to keep the founders “all-in” in the startup, because they feel that otherwise the founders won’t be motivated enough.

Founder 87

Founder Common Stock Preferred Stock Stock 87

K9 Ventures

NOVEMBER 21, 2011

Let’s say you’re the founder (I use a solo-founder in my example to keep things simple, but this could just as well apply to a founding team) of a startup called Blood, Sweat and Tears, Inc. They want to keep the founders “all-in” in the startup, because they feel that otherwise the founders won’t be motivated enough.

Founder 84

Founder Common Stock Preferred Stock Stock 84

Startup Company Lawyer

JULY 20, 2009

Founders of startup companies often wait to incorporate a company until they are confident that their concept is viable or fundable. Incorporating a company and issuing stock to the founders will help prevent misunderstandings among the founders about equity splits. Issuing stock options. Creating intellectual property.

IP 67

IP Stock Options Preferred Stock Capital Gains 67

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. Common stock. The holding of common stock in a company indicates ownership in the corporation.

Valuation 108

Valuation Equity Warrant Common Stock 108

paulgraham.com

SEPTEMBER 23, 2012

September 2012 A startup is a company designed to grow fast. Being newly founded does not in itself make a company a startup. Nor is it necessary for a startup to work on technology, or take venture funding, or have some sort of "exit." Everything else we associate with startups follows from growth.

Startup 111

Startup Technical Review Software Review Acquisition 111

The Startup Lawyer

JANUARY 19, 2010

A stock option grants you the right to purchase a certain number of shares of stock at a pre-established price. An incentive stock option (ISO) is a type of stock option that allows favorable tax treatment to the stock option holder. Only employees of the startup can receive ISOs. Stock Option Plan.

Stock Options 40

Stock Options Stock Capital Gains Employee 40

Austin Startup

OCTOBER 29, 2010

If you’re not going to go public anytime soon, insiders always enjoy selling stock. Capital gains tax rates may go up after Jan 1st, and some people need to acquire that new Ferarri 458 or buy that ski cabin in Aspen. Without the benefit of inside information, we can only speculate on the deal.

SEM 67

SEM Capital Gains New York Valuation 67

Both Sides of the Table

MAY 24, 2021

But markets have changed and I think investors, founders and experienced executives who want to join later-stage startups can all benefit from playing the long game. Interim liquidity plus long-term capital gains work really, really well. It literally drove FOMO.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Ben's Blog

APRIL 7, 2021

Corporate incentives: Fairchild Semiconductor in 1957 developed a broad-based equity incentive compensation program known as stock options. Over time, the concept of broad-based equity ownership has become characteristic of most tech companies and embedded in Silicon Valley startup culture very early on. Venture capital.

Silicon Valley 36

Silicon Valley Non-Compete San Francisco Government 36

The Next Web

JULY 21, 2013

Editor’s note: This is a guest post by Güimar Vaca Sittic , a two time Internet entrepreneur currently working at Quasar Ventures based in Buenos Aires, and a Startup Chile Judge. Let’s take the example of a company that has already gained some traction and raised a seed round from angels during its 24th month. Investing in vesting.

Vesting 143

Vesting Founder Chile Equity 143

Austin Startup

FEBRUARY 3, 2019

is vital to our startup ecosystem here. And I hope these lessons have an impact beyond Austin angels and startups as well. We are in 62 startups and 19 VC funds now ( our portfolio ), and I have some good data at this point on how profitable our endeavors have been, so I feel pretty qualified to share these lessons with you.

Angel Investor 48

Angel Investor Advisory Board Equity B2C 48

Both Sides of the Table

AUGUST 30, 2010

My original thinking from Oct ’09 was, while I didn’t (and still don’t) have a crystal ball I worried that: consumers were over-stretched with debt (and make up 77% of the economy), unemployment would continue to rise, which in turn would drive the stock market south and cut the rate of M&A activity and VC investment even further.

Entrepreneur 298

Entrepreneur Technical Review Balance Sheet Government 298

techcrunch.com

SEPTEMBER 2, 2012

Although these types of notes are relatively easy and cheap to form, many have argued that these types of vehicles are not startup-friendly for a variety of reasons, which we’ll explain below. The point, he says, is to avoid time-consuming valuation negotiations and allowing a variable amount of capital to be raised. Enterprise.

Equity 87

Equity San Francisco Technical Review Angel Investor 87

Both Sides of the Table

JANUARY 2, 2016

They get to have “long-term capital gains” taxes which are much lower than short-term capital gains taxes paid by people who have stock options or income taxes paid to workers. To me it favors people like me with capital over those that are purely labor. Founders start companies.

Dividend 150

Dividend Capital Gains Silicon Valley Stock 150