Both Sides of the Table
JANUARY 21, 2010
You never got around to agreeing exact equity splits but you had many conversations about it. Shame about not getting it in legal writing that you owned the original IP. They usually ask for warrants (basically like a stock option) in exchange for taking a deferred fee.
Both Sides of the Table
SEPTEMBER 28, 2014
Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left. So money spent should add equity value or create IP that eventually will. If you have raised venture capital and you feel your runway (number of months cash left) is looking low have a conversation with your VC.
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Both Sides of the Table
JANUARY 5, 2010
Through comment conversations with many of you I tried to emphasize that it isn’t enough to just have one attribute. If your idea is so amazing that it warrants my hard-earned angel money or the money of my LP investors from our fund then why should I take a risk on you if you won’t take a risk on yourself? You need the whole package.
David Teten
JANUARY 19, 2021
Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. As a result, unfounded hockey-stick graphs and unicorn promises give way to financial fluency, realistic expectations, frank conversations about what a business can credibly achieve, and transparency. . Lenders sometimes take warrants.
Both Sides of the Table
SEPTEMBER 18, 2014
These are all real conversations. What if when you have that conversation you don’t agree? If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy. I have them all the time. I’m bored of it. ” Simple. And so forth. Employment.
Austin Startup
AUGUST 20, 2017
Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services. It behooves you to strive for similar succinctness and to carry that across all your communications, from web to social media to presentations to just casual conversations at your country club.
Gust
SEPTEMBER 17, 2014
These are all real conversations. What if when you have that conversation you don’t agree? If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy. I have them all the time. I’m bored of it. But how do I offer cheaper prices to early investors?”
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