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Arif Bhalwani, CEO of Third Eye Capital, on the ‘Golden Age’ of the Private Credit Market

The Startup Magazine

As an investor, these experiences have honed my ability to see beyond spreadsheets and valuations, to the core of what makes businesses thrive: the people, the vision, and the relentless pursuit of excellence. However, it’s crucial to approach this ‘golden age’ with a balanced perspective.

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Good riddance to non-competes

OnlyOnce

Some restrictive covenants for a limited period of time for former employees are totally fair. That’s why people at hedge funds and investment banks have “garden leave” where the incoming firm has to pay them to sit on the sidelines for a year before joining.

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Launchpad LA – More Details Revealed

Both Sides of the Table

He had a pile of debt and covenants that made him vulnerable if the debt holders wanted to play rough. I set out some simple objectives, picked 13 startup CEO’s, planned a series of events, spent time personally trying to coach people through their fund raising processes and waited to see where it went.

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Master of Customer Acquisition, Matt Coffin, On Startups …

Both Sides of the Table

He tells the story of how he was out of cash, stressed out, nobody in LA or Silicon Valley would give him money, he had finally found an investor in Minneapolis but his venture bank was going to shut him down for breaking a “covenant&# in their agreement by not having enough cash in the bank. The answer? That was a quick meeting!!

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What if you see juicy competitor information?

Berkonomics

It is natural to want to associate with these people for many reasons, certainly socially. And none of this is especially considered a trade secret, violating the unspoken covenant between competitor CEOs that there is a limit to such exchanges. Some of these are old friends, some even former associates.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Many venture debt lines have “covenants” that restrict you from going below a certain amount of cash in the bank (in normal times they are more common – in better times they are less common). And you risk “trading while insolvent” which has legal implications.

Burn Rate 383
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Accepting Outside Investors? Here Are 5 Things to Watch Out for in Your Contract

Up and Running

When you hear of a company that sells for, say $10 million, most people assume that the founders are now multi-millionaires. If there’s a liquidation preference clause, however, you’ll need to look at the formula in the clause to see how people get paid off. Liquidation preference. See Also Planning for the Future: Your Exit Strategy.