Up and Running

AUGUST 17, 2015

Between my experiences as a management consultant, as well as my product and marketing roles at multiple tech companies, I felt that I had enough operational experience to make that leap sooner than later. C Corp versus LLC, non-competes, liquidation preferences, preferred versus common stock, and so on).

Entrepreneur 60

Entrepreneur Cofounder Angel Investor eCommerce 60

Both Sides of the Table

JANUARY 21, 2010

Your contractor wrote a great V1 of the product and it helped you get angel funding. How to manage costs - One of the biggest frustrations that people have with lawyers are unexpected costs. You need to know how liquidations preferences work. In every firm there are A, B and C players. Good people and evil people.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

David Teten

AUGUST 21, 2019

Lower processing cost. Much lower cost of capital, if company is highly successful. The cost of VC funding to a unicorn CEO can easily be the equivalent of paying well over 100% annual interest. Cost of capital is tax deductible, unlike traditional equity VC. For a VC round, this can be $25-50k+.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

K9 Ventures

JUNE 5, 2015

In addition, the competition for and the cost of hiring people, especially in the San Francisco Bay Area, has gone up dramatically. So while the infrastructure cost and startup costs may have declined, the operating costs have increased. If it doesn’t have the product fully baked yet? Pre-Seed is the New Seed.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Both Sides of the Table

SEPTEMBER 2, 2009

I took money with a 3x participating preferred liquidation preference with 8% compounded interest annually. Coupled with my participating preferred from 1999 and 2000 I had more than $55 million of liquidation preferences. In my first company I had to raise money in April 2001 or die.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

K9 Ventures

MARCH 23, 2011

It is in essence equivalent to being a Liquidation Preference that is typically seen in a preferred equity financing. I’ve done priced equity rounds for companies at pre-negotiated amount with law firms on the basis of using standard docs at prices which are marginally more than it would have cost to do a note.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

SoCal CTO

JULY 13, 2010

Pivoting - Chris Dixon , June 14, 2010 My Hunch cofounders and I frequently ask ourselves: “If we were to start over today, would we build our product the same way we had so far?&# The sunk costs trap. had two occasions recently to review products which had clear market leadership. liquidation preference.

Cofounder 175

Cofounder Technical Cofounder Term Sheet Startup 175

abovethecrowd.com

APRIL 20, 2016

In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. Moreover, once high-flying startups began to struggle on the fundraising trail.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Both Sides of the Table

FEBRUARY 14, 2016

The principle of microeconomics is that at a market-clearing price for any product the right amount of sellers and buyers will emerge and a price will be set. Some products are “inelastic” meaning when prices go up demand doesn’t fall much (think cigarettes, alcohol or even illicit drugs).

Valuation 150

Valuation Down Round Startup Later Stage 150

Life Beyond Code

SEPTEMBER 27, 2011

here is what Taariq says about 1M/1M: “With Sramana, we sprinted from vague product concept to a customer-driven business with real, reference customers in just six months. At 1/12th the cost, 1M/1M provides far more value. Any startup that wants to fast-track to being ‘Silicon Valley VC ready’ should participate in this program.”.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116