Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. The cap is irrelevant if the next equity financing is at a valuation below the cap amount.) was spun out, and the valuation was set by that financing round.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Hunter Walker

AUGUST 24, 2014

The vast majority of my future savings was (a) not vested yet and (b) tied to hope for future stock grants I’d earn. It’s for reasons like these that I support getting startup founders some liquidity during their company’s first few years, perhaps as early as Series A financing when appropriate.

Founder 108

Founder San Francisco Liquidity Event LP 108

Tim Keane

JANUARY 12, 2010

The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay. For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Gust

SEPTEMBER 17, 2014

It’s like we need a finance 101 course for entrepreneurs. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. These are all real conversations. of the time I have no vested interest in having the debate. There were no metrics. Last year ….

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Up and Running

JUNE 2, 2011

There comes a time when every business must secure financing to cover their growing needs. Unfortunately the world of finance can be a bit tricky, especially when it comes to business loans. If you are not vested, how can you expect a perfect stranger (lender) to be? Collateral. Business and personal cash are very important.

Vesting 82

Vesting CPA SBA Bankruptcy 82

ithacaVC

DECEMBER 13, 2013

The option plan shares available for future issuance typically represent the number of additional options needed for hiring planned up to the point of the NEXT financing (as in we are doing a Series A round now, how many options do we need prior to doing a Series B round). times more equity than Founder X. after the financing closes).

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

Steve Blank

SEPTEMBER 2, 2015

At the same time, as these conversations were going on with the city, as I understand it, Stanford got cold feet and decided they really didn’t want to extend out 3500 miles. Of the cohort that just graduated I think eight are completely self-sufficient and actually revenue positive and another 10 are in Series A round financing. .

Entrepreneur 120

Entrepreneur New York Cofounder Equity 120

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . In the private equity universe, most Partners have primary training as deal-makers, not as managers. (To see the video above, please click the image, and then click on the Play button.).

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

www.quora.com

SEPTEMBER 22, 2011

Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation Stock Options Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? This ties into this Paul Graham article: [link] /equity. Login if you already have an account.

Equity 40

Equity Employee Founder Cofounder 40

Software By Rob

NOVEMBER 16, 2009

This morning Seth Godin published a post titled Debt, equity and a third thing that might work better. I was surprised by this, as I thought Seth was going to discuss another option I’ve seen used with great success: customer financing. Customer financing is not popular with startups because it’s hard.

Equity 42

Equity Software Review RSS Widget 42

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. Convertible notes.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

www.chubbybrain.com

SEPTEMBER 28, 2011

If I tell someone I’m the mayor of a spot, I’m in an instant conversation: “What makes you the mayor?” Go vest yourself. Don’t exacerbate the issue by needing to figure out how to deal with a large equity deadweight on your hands (investors won’t like that the #2 stakeholder is absent, even estranged, from your company).

Software Review 79

Software Review Startup Technical Review Vesting 79

venturehacks.com

MARCH 21, 2008

If an advisor can uncork a million dollars of your company’s latent value with 15 minutes of conversation or a single introduction, you should pay him appropriately. The options typically vest monthly over 1-2 years with 100% single-trigger acceleration and no cliff. Equity is the gift that keeps on giving.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

www.paulgraham.com

OCTOBER 23, 2010

The sixth largest center for oil, or finance, or publishing?Whatever Whats not a theory is the converse: ifyoure trying to solve problems you dont understand, youre hosed. VCsnever quite say yes or no; they just engage you in an apparentlyendless conversation. It happens so oftenthat weve reversed our attitude to vesting.

Startup 108

Startup Software Review Hiring Detroit 108

maplebutter.com

JANUARY 8, 2013

If you believe in it – then finance whatever you can yourself. Ideally you can pay them based + equity so that you’ll get their attention and focus on the project. At the end of the conversation, ask them if they’d be willing to make an introduction. Other sources of capital. Government grants – Credit cards / debt. P.S. Do #1.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

venturehacks.com

OCTOBER 21, 2010

Reading on, the term sheet states, “The $8 million pre-money valuation includes an option pool equal to 20% of the post-financing fully diluted capitalization.&# Third, if you sell the company before the Series B, all un-issued and un-vested options will be cancelled. This can be done on any financing or M&A event.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Austin Startup

MAY 17, 2017

Instead, the company just has a loose set of individual advisors they work with on strategic matters, often in exchange for equity with a vesting schedule. They’ll often ask for different variants of ‘information rights’ — which can include delivery of regular financials, and notification of major transactions (like financings).

Seed Stage 48

Seed Stage Startup Cap Table Angel Investor 48

Seeing Both Sides

MAY 20, 2014

In a dramatic shift versus a decade ago, technology jobs are just as sought as roles in finance. As uncomfortable as it is to give and receive feedback, the MBA class contains people who have a vested interest in your success and want to see you “Be all that you can be”.

Vesting 50

Vesting Framework Equity Matching 50