article thumbnail

The Corrosive Downside of Acquihires

Both Sides of the Table

For the past 5 years or so Google, Facebook and a handful of tech industry giants have been quietly buying scores of early-stage startups for their talent. Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. And who cares, right?

article thumbnail

Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

VI: Revenue-based financing: The next step for private equity and early-stage investment. VIII: The Leading Flexible VCs, With Structures Between Equity and Revenue-Based Investing. David Teten , Versatile’s founder, was previously a Partner with HOF Capital and ff Venture Capital, two early-stage New York VC firms.

Equity 78
Insiders

Sign Up for our Newsletter

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

article thumbnail

Acquihires 101: Tips for Founders

Scott Edward Walker

The acquirer is typically a large successful company, and the target is typically a failing early-stage startup. The appeal from the acquirer’s perspective is that – in one fell swoop – it acquires a team of engineers. How is the Deal Structured?

Founder 45
article thumbnail

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

David Teten

I’ve been looking for suggestions for an initial deal structure that is appropriate for the theoretical case of a trusted dev shop putting in $100k in market-value of services over a 6 month period in time. I recently joined CoVenture , an early-stage venture capital firm that develops products and invests cash in exchange for equity.

article thumbnail

Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

While the CAC ratio helps SaaS businesses at scale to manage their Sales and Marketing spend, the SLC is a helpful framework for early stage businesses before you have meaningful data. Ramping up too quickly will burn precious cash reserve and could sink the business. Yet many B2B companies don’t have a clue.