David Teten

JANUARY 19, 2021

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). That said, nothing is cost-free. More complex cost of capital calculation. Inversely, if the company has slower than predicted growth, the effective cost of capital is automatically lowered. Volatile, uncapped.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

YoungUpstarts

MARCH 14, 2012

IPO stands for Initial Public Offering, and is the first sale of a private stock to the public. Most recently, the mass media has been concerned with the Facebook IPO. EBITDA is often used in loans covenants. What You Thought It Meant: Giant Awesome Animatronic Porcupine.

Non-disclosure Agreement 202

Non-disclosure Agreement NDA IPO Covenant 202

Tim Keane

MARCH 9, 2011

The overarching idea, of course, is to reduce the cost of capital while maintaining appropriate flexibility for the venture.  2]   Aligning interests in structure: cost and risk.   Appropriate covenants.   About the same cost as #2 but more flexible if repayment terms slip a bit. Possibilities: 1. 

Finance 83

Finance Bootstrapping Startup Equity 83

Up and Running

APRIL 8, 2013

The key thing is that the estimated return on the project must meet or exceed the cost of the external capital; otherwise the project is not worth undertaking. Also, equity investors usually only see a return on their investment if the company is acquired or IPO s.

Equity 82

Equity Covenant Venture Capital Finance 82