Berkonomics

MARCH 8, 2018

Many early stage CEOs and board members have asked for some guidance regarding pay and time commitments for board members. Pay early stage board members of companies that are not lifestyle businesses one percent of the fully diluted equity in the form of an option that vests over four years of service.

Early Stage 102

Early Stage Vesting Stock Options Preferred Stock 102

Both Sides of the Table

MAY 27, 2013

In addition to helping manage the board Chris also helps represent the interests of the angel investors / common stock holders. I would say the norm for many early-stage companies is somewhere between 6-10 in-person meetings per year. That in itself is quite a challenge. Ask for short conference calls.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

Both Sides of the Table

JULY 22, 2010

VC’s in early rounds will argue that “participation&# is simply downside protection and if you sell for a lower price they should get more of the proceeds. Privately some early-stage VC’s talk about participation helping them to “juice their returns&# on smaller exits. This is a shame.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Berkonomics

OCTOBER 26, 2010

Many early stage CEOs and board members have asked for some guidance regarding pay and time commitments for board members. Pay early stage board members of companies that are not lifestyle businesses one percent of the fully diluted equity in the form of an option that vests over four years of service.

Stock Options 66

Stock Options Early Stage Stock Vesting 66

Up and Running

AUGUST 17, 2015

C Corp versus LLC, non-competes, liquidation preferences, preferred versus common stock, and so on). During the early stages of the process, they launched a catering business and were able to cater several business school events, all the while refining their menu and getting firsthand experience test driving their concept.

Entrepreneur 60

Entrepreneur Cofounder Angel Investor eCommerce 60

Gust

DECEMBER 18, 2013

Because the investor is putting in the seed money where the later stage investor won’t take the risk (“angels rush in where VCs fear to tread”) the investor rightly figures that the reward should be commensurate with the risk. That is a swing of 15x from the investor’s point of view!

Valuation 150

Valuation Founder Seed Money Common Stock 150

Growthink Blog

MAY 10, 2012

When seeking equity investments, the source of capital is, for the most part, tied to the stage of capital being raised. You see, equity capital is raised in stages or rounds. The five main stages include the following: 1. Early Stage Investment (Series A & B) 4. Pre-Seed Funding 2. Seed Funding 3.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88