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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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Equity for Early Employees in Early Stage Startups

SoCal CTO

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.

An Advisor Equity and Advisor Pool Breakdown

Eric Friedman

As a potential advisor looking to get involved with the company; MORE EQUITY! Eric Friedman Startups Advisors Equity Startup Advisors

How does equity dilution work for startups?

Gust

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.

Kindred Disciplines: Growth Equity and Growth Hacking

Non-Linear Growth

When I hear “marketing”, I think soft, fuzzy, ambiguous, and cost center. Generate a thesis, test, measure, re-calibrate and repeat.

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

www.startuplessonslearned.com

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

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.

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.

Startups Should Be Responsible for Explaining Equity to New Employees

View from Seed

It falls on the hiring company to thoroughly explain equity options to their new employees. Uncategorized equity VC” Full Stop.

Opportunity Cost

StartupCFO

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

Cost 28

Government Grants Cost No Equity, But are Not Free

Startup Professionals Musings

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.

SBIR 21

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.

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.

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.

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?

techcrunch.com

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?

techcrunch.com

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

Startup Equity For Employees

www.payne.org

Startup Equity For Employees. 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.

What is Sweat Equity Worth?

www.entrepreneur.com

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.

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.

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

Gust

convertible note and an equity round are two different things, done for different reasons. 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.

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.

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

Agile VC

Sometimes co-founders put off the equity split question for some time. Both of these are typically reflected in the founder equity split.

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.

Is Dead Equity Crippling Your Company?

Altgate

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

11/29/2014 - Superfund Equities Report

Chaganomics

11/29/2014 - Superfund Equities Report - www.tinyletter.com/superfund 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?

Noam Wasserman

Dead equityequity held by employees and founders no longer working at the company — is a large and growing problem.

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 18

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.

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.

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

ConversionXL

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

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.

Cost 21

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).

SEC 18

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.

7 Best Strategies for Maintaining Equity

Early Growth Financial Services

Of utmost concern to many entrepreneurs is how to retain maximum equity in their startups. Whether you’re funded, seeking funding, or still bootstrapping, here are some of the best strategies for avoiding dilution and maintaining maximum equity: 1. Rightly so. Milestone raises.

FIN-FSA Cracks Down On Equity Crowdfunding Platforms

ArcticStartup

During the last few years, equity crowdfunding has been a fast growing activity in Finland and in the rest of Europe. About the Author.

Unicorpse and The Moral Hazard of Making Unicorns

Non-Linear Growth

Who bears the cost? I’m sure that many more thoughtful than me has written about the moral hazard of venture capital. million ARR.