View from Seed

OCTOBER 21, 2014

In this case, it’s almost like opening a job interview by sharing salary requirements. As a funding conversation progresses from initial to subsequent meetings, the topics of round structure and pricing become much more natural.

Valuation 336

Valuation Founder Seed Stage Angel Investor 336

Genuine VC

JULY 30, 2012

It’s like opening a job interview by sharing salary requirements. Of course, as a funding conversation progresses from an initial to subsequent meetings, the topic of round structure and pricing become much more natural. So the communication may needlessly shy away some investors from the table who would otherwise be good partners.

Valuation 136

Valuation Pre-Money Valuation Angel Investor Syndicate 136

Duct Tape Marketing

FEBRUARY 16, 2023

3:57] If I’m that solo owner and I’ve been paying myself a nice salary and there’s maybe 10% profit at the end of it – is that considered cash flow or is that considered an expense of the business? [6:34] 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

Jeff Hilimire

MARCH 4, 2014

With my first sale, my partners and I focused all of our attention on the details of the sale (what the valuation would be, how would it be structured, etc) and very little about what would happen with us individually. We weren’t smart about making sure we had the proper roles, salaries, and autonomy within the new company.

Private Equity 61

Private Equity Acquisition Deal Structure Sales 61

David Teten

JANUARY 21, 2021

All Earnest investments are made using the Shared Earnings Agreement (SEAL) – a custom salary/profit share structure, aligned with how most bootstrapped founders are compensated. We determine a salary cap with the founder based on a software engineer in the closest major city.

Equity 78

Equity Revenue Cofounder Colorado 78

A Smart Bear: Startups and Marketing for Geeks

JUNE 27, 2011

Deal A gets to your number in stock options with a 4-year earn-out in a public company whose stock has been uninteresting for the past three years, plus an additional third of your number in cash — more than you wanted! Deal B gives you 70% of your number, all in cash, all up-front. Do you prefer Deal B?

Sales 235

Sales Term Sheet Stock Deal Structure 235

grasshopperherder.com

SEPTEMBER 24, 2011

Without receiving a real salary, I’d be wary of signing a non-compete in an area which I have domain expertise in. Lastly and most excitingly , it is very very easy in this structure to cause Company B to go bankrupt. The founder who owns 51% of Company B can elect to pay himself a salary of $1 USD. At what price?

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41