View from Seed

OCTOBER 21, 2014

On the positive side for a founder, directly stating a high valuation expectation up front can anchor the negotiations to a higher level, assuming that an investor takes the leap of faith to invest. They’ll therefore systematically seek to invest in startups at the lowest cost-basis possible. So What Should Founders Do?

Valuation 336

Valuation Founder Seed Stage Angel Investor 336

YoungUpstarts

MAY 14, 2018

Marks, founder and managing partner of High Rock Partners and author of “ Middle Market M & A: Handbook for Investment Banking and Business Consulting “ Conventional wisdom says that a company grows by reaching new customers, increasing its workforce, expanding marketing or launching new products or services. by Kenneth H.

Acquisition 109

Acquisition Finance Intellectual Property Mezzanine 109

VC Cafe

SEPTEMBER 6, 2011

Are your costs per acquisition going up or down with scale? Management team that sounds and looks like they can execute the plan – if you didn’t finish building the team yet, make sure you have at least one co-founder with complementary skills. Bottom up is better than top down projections (i.e. Have a sigle main idea.

Startup 133

Startup Cofounder Warrant Stock Options 133

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? VIII: The Leading Flexible VCs, With Structures Between Equity and Revenue-Based Investing.

Equity 78

Equity Revenue Cofounder Colorado 78

K9 Ventures

OCTOBER 10, 2017

I’ll start with all the questions I can think of, from many different perspectives: founders, LPs, the press, and even other VCs. Yes, the infrastructure is cheap (to start), but the human costs have gone up dramatically. Q: Does a Pre-Seed require founders to give up more equity in the company? Those times are long gone.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

David Teten

OCTOBER 1, 2015

I’ve been looking for suggestions for an initial deal structure that is appropriate for the theoretical case of a trusted dev shop putting in $100k in market-value of services over a 6 month period in time. What are the terms of their relationship with the founder? That said, I’m not sure of the most appropriate structure.

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60

grasshopperherder.com

SEPTEMBER 24, 2011

« Thanks but No Thanks – Things to Avoid When Recruiting Co-founders Why is Cyber Squatter a Bad Word? Some have been as co-founder, most have been as a consultant with the possibility of becoming an paid employee, “as soon as we close our funding round.” Which corporate entity do the founders own stock in?

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41