View from Seed

OCTOBER 21, 2014

Like any economic transaction, the pricing of a startup’s seed round ultimately depends on the equation of perceived supply (in this case, the quality of the team, product, and market opportunity) and the demand (how many competitive alternatives there are to any one given funder, including non-consumption).

Valuation 336

Valuation Founder Seed Stage Angel Investor 336

YoungUpstarts

MAY 14, 2018

Marks, founder and managing partner of High Rock Partners and author of “ Middle Market M & A: Handbook for Investment Banking and Business Consulting “ Conventional wisdom says that a company grows by reaching new customers, increasing its workforce, expanding marketing or launching new products or services.

Acquisition 124

Acquisition Finance Raleigh Mezzanine 124

Both Sides of the Table

MAY 13, 2013

If you give $2 million for 20% of a company ($8 million pre + $2 million investment = $10 million post-money valuation) that has no product and no customers and it turns around 3 months later and sells for $5 million it would hardly be fair for investor to get $1 million back (20% of the proceeds). Not looking for quick flips.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

YoungUpstarts

NOVEMBER 13, 2012

Negotiating a different deal structure could have prevented the price from dropping. Unique social networking product. Christopher Wallace is Vice President of Sales and Marketing for Amsterdam Printing , one of the nation’s largest providers of promotional products for businesses large and small. Unprofitable.

IPO 162

IPO Exit Strategy San Francisco Startup 162

YoungUpstarts

MAY 9, 2019

The CIM is a document that outlines the company being sold, its history, products and services, customers, financial performance, management team, and growth strategies. Out of thirty lookers, perhaps ten will submit an indication of interest (IOI). Like attorneys, you don’t want to skimp on tax advice either!

Private Equity 113

Private Equity Equity Investment Bankers Government 113

Genuine VC

JULY 30, 2012

Like any economic transaction, the pricing of a startup’s seed round ultimately depends on the equation of perceived supply (the quality of the team, product, & market) and demand (how many competitive alternatives there are to any one given funder, including non-consumption).

Valuation 136

Valuation Pre-Money Valuation Angel Investor Syndicate 136

K9 Ventures

OCTOBER 10, 2017

If it doesn’t have the product fully baked yet? A Seed round today — like the Series A round of yesteryear — requires some kind of traction or product. They shouldn’t even be looking for a fully built product. Or if the traction is not yet interesting enough to attract a full Seed round? Those times are long gone.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Scott Edward Walker

DECEMBER 13, 2018

An acquihire is essentially the acquisition of a startup for its talent/team (rather than for its products or services). How is the Deal Structured? The purpose of this post is briefly (i) to provide an overview of acquihires and (ii) to discuss the significant legal issues that founders must address. What is an Acquihire?

Founder 45

Founder Merger IP Liquidation Preference 45

Jeff Hilimire

MARCH 4, 2014

It’s easy to get caught up in the dollar signs and deal structure and overlook this important step in the process. Fear of the unknown can be crippling for productivity and stability within the organization. Understand the process before you start. Understandably, going through this process can make people nervous.

Private Equity 61

Private Equity Acquisition Deal Structure Sales 61

Hunter Walker

MAY 18, 2015

Similarly, a GP might be in the middle of great flow, but we need to have conviction that they can identify the right deals, structure creatively, and negotiate effectively. While there has been meaningful growth in the number of early stage venture funds, very few are able to provide meaningful operational and product guidance.

LP 48

LP Portfolio Early Stage Institutional Investors 48

Cracking the Code

OCTOBER 10, 2008

Like SaaS products themselves, we now intend for these laws to be periodically refined through major releases to reflect the changing landscape of the SaaS world. Save Asia for post-IPO Single instance, multi-tenant, single datacenter - Have only one version of the code in production.

Software Review 48

Software Review North America Europe Metrics 48

Entrepreneurs-Journey.com by Yaro Starak

JANUARY 21, 2011

Investment in small businesses require knowledge of transactions and the related aspects such as business valuation, due diligence, deal structuring / financing, contracts, etc. There are two kinds of people, ones that are interested in the product offering and others who are interested and motivated by the process.

Internet 80

Internet Technical Review Stock Due Diligence 80

David Teten

MAY 20, 2013

In the end, Plated was able to use the domain to prove out its minimal viable product for a nominal amount of cash, raise capital, and purchase the domain in full. If we find the right partner, we can be flexible in deal structures to best align everyone’s interests.

Naming 114

Naming Startup Venture Capital Portfolio 114

David Teten

MAY 20, 2013

In the end, Plated was able to use the domain to prove out its minimal viable product for a nominal amount of cash, raise capital, and purchase the domain in full. If we find the right partner, we can be flexible in deal structures to best align everyone’s interests.

Naming 114

Naming Startup Venture Capital Portfolio 114

Duct Tape Marketing

FEBRUARY 16, 2023

Just like every business thinks about their customers and what their customer wants, when you wanna sell your business, you are basically entering the same kind of world, but instead of your product or service, it's your business. Let's talk about some of the deal structures you've seen. 09:23): Sure.

Technical Review 80

Technical Review Wisconsin Non-disclosure Agreement Salary 80

grasshopperherder.com

SEPTEMBER 24, 2011

Not that they were trying to take advantage of me necessarily, but it happened because of the deal structure. Product Management (2). Productivity (5). In a couple of cases the other person actually made out with a fair bit of cash and I got screwed. Tristan says: January 24, 2011 at 9:07 pm. Finding Co-Founders (11).

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41