Agile VC

APRIL 17, 2011

2010 Operating Income: $16 million. Interesting to note that Hafner and English own common stock but also made meaningful investments in the Series A & B rounds. Notes: In an IPO preferred share classes are converted into common stock, and liquidation preferences and accumulated but unpaid dividends essentially go away.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

The Next Web

JUNE 15, 2012

After all, cash may be in short supply, but there’s a virtually endless amount of work to be done, from coding and web development, to PR, sales, general operations, or sage advice from an industry veteran. It’s a logical solution. But beyond motivation, there are more pragmatic factors at play here too.

Equity 116

Equity Stock Options Vesting Stock 116

Up and Running

SEPTEMBER 19, 2017

Currently, most ecommerce businesses have IT staff constantly running manual tests to confirm that their site is operating properly, or they manually create expensive software to run these tests.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Up and Running

AUGUST 17, 2015

Between my experiences as a management consultant, as well as my product and marketing roles at multiple tech companies, I felt that I had enough operational experience to make that leap sooner than later. C Corp versus LLC, non-competes, liquidation preferences, preferred versus common stock, and so on).

Entrepreneur 60

Entrepreneur Cofounder Angel Investor eCommerce 60

Startup Professionals Musings

JANUARY 29, 2018

I’ll never forget that great sense of excitement I felt when I incorporated my first business, and realized that I was now the proud owner of 10 million shares of common stock. The acceptance of this option is now common, even though introduced only a few years ago. Set maximum board seats and select criteria in bylaws.

Stock 129

Stock Vesting Preferred Stock Cofounder 129

Berkonomics

JANUARY 6, 2022

A rather common but small dividend rate of six percent becomes a massive amount after seven years, almost half again the value of the original investment. In a cutout, some percentage, usually fifteen or twenty percent of the total sale, is allocated to management to continue operations through the closing period and help in closing the sale.

Dividend 62

Dividend IRR Preferred Stock Participating Preferred 62

ReadWriteStart

FEBRUARY 13, 2020

The well-known ridesharing giant hit the market this year with a target price of $45 dollars per share, with 180 million shares of common stock available at launch. That tells investors that the company’s growth isn’t happening just because they’re throwing cash at their operations.

IPO 147

IPO Startup Stock Initial Public Offering 147

www.inc.com

SEPTEMBER 24, 2011

Office and Operations. Graham also pushes for common stock, the right to participate in future funding rounds to preserve the size of the stake, and a guaranteed seat on the board. Naming a Business. How to Incorporate. Financing a Small Business. Buying a Small Business. Franchises. RUNNING A BUSINESS. Success Stories.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Gust

DECEMBER 8, 2011

Form a legal entity to operate the business (we’ll use a Delaware corporation as an example for Newco). Make escrow arrangements for restricted stock (i.e., Consummate the stock issuances, make any necessary securities filings and issue the corresponding stock certificates. Appoint Newco’s initial Board of Directors.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

The Next Web

JUNE 17, 2015

For the security, shoot for convertible note or common stock deals, where you can; say no to preferred stock requirements that may impede your ability to raise future capital. Giving up equity in your business, as an alternative to paying cash, often sounds like a great idea to cash-starved startups.

Equity 60

Equity Valuation Preferred Stock Common Stock 60

Austin Startup

OCTOBER 27, 2017

Out of State VCs When you’re not CEO Material Preferred Stock v. Common Stock Ask the Users Because we’re known as Startup/VC lawyers who don’t represent VCs (just companies), I often get asked about my thoughts on “founder friendliness.” Good entrepreneurs and advisors know that. Background reading: Local v.

Founder 48

Founder Cap Table Preferred Stock Common Stock 48

Berkonomics

OCTOBER 1, 2015

A rather common but small dividend rate of six percent becomes a massive amount after seven years, almost half again the value of the original investment. That further reduces the amount available to founders if not still in the ranks of management. So this advice is directed to the investors.

Dividend 48

Dividend Preferred Stock IRR Participating Preferred 48

Growthink Blog

MAY 10, 2012

Stage #2: Seed Funding Seed funding (also called seed capital) typically ranges from $100,000 to $500,000 and is often provided by angel investors, and is usually structured as convertible notes or common stock. The name is derived from the class of preferred stock investors receive in return for their capital.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Agile VC

FEBRUARY 2, 2012

How They Do It : Operate a social network at Facebook.com, through Facebook’s mobile apps, and the Facebook Platform which lets other websites extend Facebook’s tools for authentication and social sharing. – All of Facebook’s ad revenue comes from the Facebook.com website. Headquarters : Palo Alto, CA.

IPO 100

IPO South Korea Venezuela Revenue 100

ithacaVC

APRIL 10, 2012

Rather, they want their investment dollars used for growing and operating the portfolio company going forward. They have raised some money from 12 friends and family (let’s assume the friends and family have purchased common stock). To me this makes perfect sense and is justified.

Cap Table 49

Cap Table Pre-Money Valuation Stock Options Due Diligence 49

ithacaVC

JANUARY 24, 2013

The X and Y are negotiated, with the Y typically being a date shortly before the convertible debt is all used up by the company in its operations. Let’s assume the following: Common Stock outstanding: 3,400,000 shares owned by the founders.

Valuation 53

Valuation Balance Sheet Option Pool Dilution 53

www.paulgraham.com

APRIL 28, 2010

Most startups operate close to themargin of failure, and the distraction of having to deal with clientscould be enough to put you over the edge. And we think its better if startups operate out of their ownpremises, however crappy, than the offices of their investors. Theres only common stock at this stage.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

The Entrepreneurial Mind

MARCH 10, 2010

In return for this investment, JumpStart Foundry will receive a collective 10% ownership in the Common Stock of the company. Together, this founding group set out to craft a new way to provide support, both financial and operational, to innovative and promising entrepreneurs."

Nashville 53

Nashville Tennessee Early Stage Common Stock 53

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 addition, three members.

Nashville 65

Nashville Tennessee PHP Ruby 65

K9 Ventures

OCTOBER 19, 2015

” That is precisely how things seems to be operating in late stage private markets. I imagine that that’s almost like a new thing for several of the wall-street type investors since they typically only invested in common stock in liquid markets. These investors are often looking for non-venture returns.

Venture Capital 48

Venture Capital Liquidation Preference Valuation Portfolio 48

Gust

AUGUST 6, 2014

A company gets started and gets some traction [these days it is difficult to nearly-impossible to get funded without having an operating company and a product that is pretty near completion], and then starts talking to as many investors as it can find, ideally getting introduced to them by mutual acquaintances.

Term Sheet 170

Term Sheet Lead Investor Preferred Stock Common Stock 170