Up and Running

AUGUST 17, 2015

C Corp versus LLC, non-competes, liquidation preferences, preferred versus common stock, and so on). The fundraising process may start with friends and family, but may quickly shift to a bank loan, individual angel investors, or at a later stage, venture capital or private equity.

Entrepreneur 60

Entrepreneur Cofounder Angel Investor eCommerce 60

Startup Company Lawyer

MAY 4, 2009

The Institute offers a four month program, called a Semester, hosted initially in the Bay Area and then expanding to locations around the world. The program participants, the Founders, receive extensive training in weekly sessions overseen by three Mentors – two seasoned CEOs and one domain expert for each topic.

Founder 28

Founder Warrant San Francisco Intellectual Property 28

Both Sides of the Table

MARCH 21, 2010

I’ve heard the following so many times that it still makes me scratch my head, “if those guys are going to get rich off of our backs then we’re going to look like fools if we don’t have equity.&#. I’ve already made clear that I think raising equity from “strategic money&# is an oxymoron.

Warrant 298

Warrant Dilution Startup Stock Options 298

The Startup Lawyer

FEBRUARY 4, 2011

If an incubator offers your startup $25,000 in exchange for 6% equity, the pre-money valuation is a whopping $391,667. Rather than assign a monetary value to the intangibles, a startup should instead assign an equity percentage value to intangibles like mentorship. Other incubators may want to set up an option pool.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

The Entrepreneurial Mind

MARCH 10, 2010

Over the next 12 months, the microfund intends to select 10-14 entrepreneurs for the program who will receive financial, business, and technological support to accelerate the growth of their businesses. In return for this investment, JumpStart Foundry will receive a collective 10% ownership in the Common Stock of the company.

Nashville 53

Nashville Tennessee Early Stage Common Stock 53

Startup Company Lawyer

FEBRUARY 21, 2010

I was speaking at an event last month to a group of CEOs and was surprised by the number of CEOs that were worried about the value of their common stock in a M&A transaction. Due to aggregate liquidation preferences that may exceed the acquisition price in an M&A deal, common stock may be rendered worthless.

Retention 31

Retention Liquidation Preference Employee Common Stock 31

Professor VC

JULY 25, 2013

One area I''ve noticed a lot more recently are angel investors and seed stage funds trying to grab a little bit extra, whether it''s warrants for leading the round, advisor shares to go along with the investment, or a common stock stake for just being who they are. The other investor could''ve certainly lobbied to get me an allocation.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Up and Running

SEPTEMBER 20, 2021

The use of a cap table for a company comes into play when it has to track the total amount of shares, the value of shares, and the equity ownership of all the shareholders. The data of the company, such as debt and the company’s equity ownership, is laid out with the help of a cap table. Total share ownership.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

venturehacks.com

MARCH 21, 2008

Most of their companies would probably give 6% of their shares to YC for free, just to participate in the program. Advisor compensation Whether you’re hiring a normal advisor or super advisor: Advisory shares are usually issued as common stock options. Equity is the gift that keeps on giving.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

www.paulgraham.com

APRIL 28, 2010

Some VCsnow require that in any sale they get 4x their investment backbefore the common stock holders (that is, you) get anything, butthis is an abuse that should be resisted. It costs you a little more equity, but being able to play the two firms off each other (as well as ask one if the other is being out of line) is invaluable.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

The Entrepreneurial Mind

MARCH 10, 2011

Each of the selected concepts for our first year of operating this microfund received $15,000 in equity capital and special arrangements with participating partners for marketing, accounting, legal and technology services. ownership in the Common Stock of the company. In addition, three members. In return for.

Nashville 65

Nashville Tennessee PHP Ruby 65