View from Seed

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How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. Below, Lee Hower offers advice for approaching these equity discussions objectively and properly. Sometimes co-founders put off the equity split question for some time.

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What Is Venture Debt and How Should Startups Use It?

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It can be lower cost and can either buy more time or accelerate growth. Glen Mello: Venture debt is a good complement to equity. It’s generally got a lower cost compared to equity capital and can help support growth. Equity doesnt need to be repaid, so it’s a more “permanent” capital source.).

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Startups Should Be Responsible for Explaining Equity to New Employees

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When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. It falls on the hiring company to thoroughly explain equity options to their new employees.

Equity 120
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Pitch Deck Month: The “Where Are You Going?” Slide

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With extremely limited resources and time, one wrong step could cost you 6-9 months of runway. The decision around sequencing is equally (if not more) important, especially in the first 12-18 months of the business as you search for PMF and test out your initial go-to-market (GTM) strategy.

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Startups Should Be Responsible for Explaining Equity to New Employees

View from Seed

When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. It falls on the hiring company to thoroughly explain equity options to their new employees.

Equity 120
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Why NextView Invested in HomePace

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accessible US home equity as of Q1 2022. Home equity is usually the largest asset of the average U.S. increasing their debt load and taking on interest expense, either through home equity loans or reverse mortgages. Home equity is usually the largest asset of the average U.S. in 2022, and there is $9.9T

Equity 156
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State of VC 2.0

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Q: What is going to happen to the cost of capital? Q: What is the opportunity cost of not being in tech? Source: Cambridge Associates (VC) & TradingView (Equities). A: Tech is a $5tn industry, and is only a small % of total GDP. Are low interest rates structural, or temporal? . So, to conclude, are we in a bit of a bubble?

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