Remove Cost Remove Equity Remove Technical Cofounder Remove Venture Capital
article thumbnail

How to Scale a Venture Capital (or Private Equity) Fund

David Teten

. – Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives. All of the strategies above have very modest fixed cost.

article thumbnail

How Much Founder Stock Should You Offer Co-Founders?

Startup Professionals Musings

The first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90 percent of the equity. The value in a startup is all about tangible results, so there is no equity value in the idea alone. Amount of venture funding provided.

Cofounder 261
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Our categorization is not a technical one. Equity Ownership.

article thumbnail

Should You Share Equity with Consultants?

www.inc.com

Advisor. ); STARTUP. Should You Share Equity with Consultants? To grow his cash-strapped start-up, Parker ended up sharing equity -- not only with employees, but also with consultants and vendors. Parker found that equity as compensation helped build loyalty to his company -- even among consultants. Email address: Home.

article thumbnail

Timing: When to raise seed funding.

Scalable Startup

At this stage you’re essentially selling yourself and your cofounders. You’re less vulnerable, pay less equity for your funding, and you have some very specific things to talk about. PreCog Security, a company I am currently helping to build as cofounder, is taking this approach. Raise when you start getting traction.

article thumbnail

Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

I’ve seen a range of options for supporting entrepreneurs, which I can rank from least to most involvement in companies by investors: financier VCs, e.g., Correlation Ventures. portfolio operator VCs, e.g., Andreessen Horowitz, ff Venture Capital, First Round Capital, Google Ventures. mentor VCs, e.g., most VCs.

article thumbnail

Ten Ways To Lose A Deal

YoungUpstarts

Adams, authors of “ Venture Capital For Dummies ® “ You’ve managed to get the attention of well-established venture capitalists. Not to worry, if you’re having trouble navigating the mystical world of venture capital, you’re in good company. by Nicole Gravagna and Peter K. But then disaster strikes.