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Techstars Equity Back Guarantee

Feld Thoughts

Today Techstars announced an “ equity back guarantee ” for any company that goes through the Techstars program starting in 2015.

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Are You Getting Your Fair Share Of Startup Equity?

Startup Professionals Musings

So the first question I usually get is what percent of the company or equity is that person worth? Now comes the reality check. Martin Zwilling.

Equity for Early Employees in Early Stage Startups


I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. million.

How does equity dilution work for startups?


Equity dilution works when the same pie is divided among more people. Uncategorized company equity dilution founder investors startup

Should You Offer Equity Compensation to Employees?

Up and Running

Of course, not every equity compensation story is a David Choe Story. In this article, I’m going to examine: What equity compensation is.

Founder's Dilemmas: Equity Splits

Startup Lessons Learned

Setting the early equity split in stone is one of the biggest mistakes founders can make. Having the real facts helps us ask better questions.

Founder's Dilemmas: Equity Splits

Founders Dilemmas: Equity Splits. The following is an exclusive excerpt which sets up a common pitfall regarding equity splits. Contact.

For Equity Investors, A Startup Has To End To Win

Startup Professionals Musings

Yet one of the first things a potential equity investor asks about is your exit strategy. Find a private equity firm or friendly individual.

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals.

Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Opportunity Cost


While they differ in many ways from experience to risk tolerance, etc, you can boil them all down to one element – opportunity cost.

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Startups Should Be Responsible for Explaining Equity to New Employees

View from Seed

Of late, I’ve encountered numerous potential startup candidates and newly hired employees who have no idea what their equity means.

Are You Ready for Equity Based Crowdfunding?

Up and Running

Donation and equity crowdfunding both appeal to the public’s desire to participate collectively in fulfilling others’ entrepreneurial visions.

What Is a SAFE? A Closer Look at The Simple Agreement for Future Equity

Early Growth Financial Services

But sometimes the complexity and costs outweigh the benefits. Enter the SAFE, or Simple Agreement for Future Equity. SAFEs are not debt instruments It’s right there in the name: Simple Agreement for Future Equity. Convertible debt is a staple in startup funding.

Convertible Equity, A Better Alternative To Convertible Debt?

Convertible Equity, A Better Alternative To Convertible Debt? Startups. Mobile. Gadgets. Europe. Video. Enterprise. Venture. Social. GreenTech.

Free Startup Docs: How Much Equity Should Advisors Get?

Free Startup Docs: How Much Equity Should Advisors Get? Tags: founder-institute , Startups , equity Sponsored Ads. Startups. Mobile.

Government Grants Cost No Equity, But are Not Free

Startup Professionals Musings

A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. Professional help costs money.


What is Sweat Equity Worth?

Franchises Franchises Home Franchise 500 Home-Based Low Cost Top New Fast Growing Top Global Biz Opportunities Franchises for Sale Franchises A Bright Forecast for a Solar Panel Installation Franchise. What is Sweat Equity Worth? Determining how to value sweat equity is key when negotiating with investors and employees. Comment.

The Real Cost of Raising Money Through Equity

Fresh Inc.: The Staff Blog

Business finance runs along a continuum where the lowest cost of capital is a loan and the highest cost of capital is equity.

10 Partner Qualities to Test Before Sharing Equity

Startup Professionals Musings

entrepreneur startup co-founder partner equity businessThe relationship has to have trust, communication, and respect in order to work.

Startup Equity For Employees

Startup Equity For Employees. 7 Salary vs Equity. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. Buying your stock would cost $200,000! Salary vs Equity. Contents. Stock.

Startup Equity Crowdfunding Grows in Europe (NESTA Report)

VC Cafe

investors can then, through the platform, buy small parts of this equity stake. Decision on how much equity. How investment is facilited.

What is convertible equity (or a convertible security)?

Startup Company Lawyer

Quick answer: convertible equity (or a convertible security) is convertible debt without the repayment feature at maturity or interest. ” In response, Seth Levine wrote a very thoughtful post on convertible debt versus equity. Fred Wilson has been openly critical of convertible debt , and prefers priced equity rounds.

8 Secrets for Maximizing Startup Equity and Control

Startup Professionals Musings

Every outside hire increases your cost and risk. startup control equity bootstrapping Rich Christiansen business Think minimum spending.

What Private Equity Investors Want: 5 Metrics

Fresh Inc.: The Staff Blog

Private equity funds are numbers-driven. This helps the new ownership figure out which products are selling and where the costs really are.

There Is Such A Thing As Free Lunch - Free Lunch Is Opportunity Cost In Economics


Free Lunch Is Opportunity Cost In Economics - Just saying: there is such thing as a free lunch, it usually involves a trade off (free lunch at a bar if you order a muinimum of drinks). The above only makes sense in reference to equity speculators who expect no risk.

When should a convertible note be treated as a replacement for an equity round, and take on characteristics of an equity financing?


A convertible note and an equity round are two different things, done for different reasons. A large majority of serious investors will insist on an equity round, either lightly documented (such as a Series Seed) or fully documented (such as an NVCA Model Series A). It doesn’t work that way.

11/29/2014 - Superfund Equities Report


11/29/2014 - Superfund Equities Report - The fund sold F (Ford) and piled up on TASR (Taser), SWHC (Smith & Wesson), ZNGA (Zynga) and ABR (Arbor REIT) Citi Group''s Index unit is for sale - LINK OPEC''s meeting in Vienna this week shook the oil markets. Seagate expects a total redemption cost of $362M.

Is Dead Equity Crippling Your Company?


Choe opted to forgo a cash payment “in the thousands” for the equity equivalent at the time. Anticipating and Avoiding the Dead-Equity Pitfalls.

The Real Cost of Capital

Fresh Inc.: The Staff Blog

But how much is their help going to cost you, really? What's the real cost of capital for your business? You've got investors lined up.

Cost ratios as a measure of fund efficiency

The Equity Kicker

This applies to all classes of fund managers, including pension fund managers, IFAs, private equity fund managers, and venture capital fund managers.

IRR 20

Should You Give Up Equity for the Sake of Growth?

Fresh Inc.: The Staff Blog

But here are six cases when you should consider outside equity capital. The most important factor in raising equity is a proven business model.

Why Your Customers Buy More When Value Outweighs Cost


This concept is illustrated in the heuristic below: Value force outweighs cost force. million in incremental revenue. Conclusion.

Professional Investors Qualms About Crowdfunding

Startup Professionals Musings

At least ten online portals are already gearing up to help regular people buy startup equity, without abiding by accredited investor rules.

Basics of Unit Economics Analysis

Non-Linear Growth

Economics Growth Equity Investment Selection Raising Capital average customer lifetime capital expenditures churn contribution margin marginal operating costs unit economics When an investment passes our first-screen at Meritage Funds, the first deep-dive we typically do is on the unit economics of the business.

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The Real (and Very High) Cost of Crowdfunding

Fresh Inc.: The Staff Blog

Raising money from hundreds of investors has never been easier--but it comes with higher costs than you might realize. percent at $500,000).

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The Right Way to Grant Equity to Your Employees

Fresh Inc.: The Staff Blog

The equity culture among young technology companies is almost universal. Here''s how you can. This pool should be reserved for non-executives.

Do My Early Stage Investors Own Too Much Of The Company?

Ask The VC

Question: Most VCs commented that they can not fund current cap table where the CEO and COO would get 10% equity once fully vested while the current investors have 80%. Also, I have been offered 10% equity with 4 year vesting and 1 year cliff. Equity angel ceo early stage equity ownershipLast years revenue was $52k.

What It Really Costs to Launch a Start-Up

Fresh Inc.: The Staff Blog

As a co-founder, RRE was committed to putting in the money at a relatively attractive price instead of receiving any founders'' equity.

Should Equity-Based Crowd Funding Be Legal?

Growthink Blog

Letting small companies sell equity stakes online would be a huge boost to those firms—like angel investing on steroids. The businesses would get access to tens of millions more potential investors, and could reach out to them at little or no cost through online outlets like Facebook. Funding is the lifeblood of any small business.

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