Remove Cofounder Remove Demand Remove Dilution Remove Distribution
article thumbnail

Entrepreneur Startup Share Depends on Contribution

Startup Professionals Musings

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Building a product doesn’t get it distributed and sold. In many cases, one founder has started earlier and brings an important completed piece of work to the table, and that can have great value.

article thumbnail

Splitting Startup Equity for Your Piece of the Pie

Startup Professionals Musings

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Building a product doesn’t get it distributed and sold. In many cases, one founder has started earlier and brings an important completed piece of work to the table, and that can have great value.

Equity 228
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What Happens When Startups Turn from Their Innovation Stage to Operational Excellence?

Both Sides of the Table

As the idea went from innovating on software & systems to launching a company to rolling it out in the field brought on Rahul Gandhi as his co-founder to physically launch the company. and we were met with weak demand, slow growth and high costs. were more distributed. Seriously, this happens.

article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad.

article thumbnail

How to Talk About Valuation When a VC Asks

Both Sides of the Table

I know that some founders feel uncomfortable with this as though they might somehow be sharing something so confidential that it ultimately hurts you. Many VCs will have a distribution curve where they’ll do a small number of early-stage deals (say $1.5–3 Why shouldn’t most founders just name a price? After all?—?we

Valuation 324
article thumbnail

How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). If new investors get better rights in a future equity financings (such as registration rights, price-based anti-dilution, redemption rights, etc.), Anti-dilution protection.

Finance 70
article thumbnail

Taking on Tech Titans

Reid Hoffman

Greylock investor Sridhar Ramaswamy , who co-founded search engine startup Neeva , says it’s more important for startups to think about creating a product that is useful and resonates with people before worrying about whether a large incumbent is doing it. TRANSCRIPT.