Austin Startup

JULY 6, 2018

The below outlines how I would approach the decision: Cash and Equity. Very simply, what are you giving and what are you getting in return in terms of cash and equity for joining the program? Anti-Dilution. See: Startup Accelerator Anti-Dilution Provisions; The Fine Print.

Dilution 48

Dilution Startup Technical Review Equity 48

Hunter Walker

AUGUST 7, 2017

Employee options pools, typically created at the point of financings, shouldn’t be treated as haggling over dilution, but rather a strategic resource that will help founders build the best team and, by extension, a more valuable company.

Equity 94

Equity Pre-Money Valuation Option Pool Founder 94

www.quora.com

SEPTEMBER 22, 2011

Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation Stock Options Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? This ties into this Paul Graham article: [link] /equity. I'm always su. This answer.

Equity 40

Equity Employee Founder Cofounder 40

Startup Professionals Musings

SEPTEMBER 5, 2016

Many aspiring entrepreneurs jump ship from corporate environments, complaining that they want to be their own boss, only to find that investors are more demanding bosses than the ones they left. You don’t have to fight for your equity, and no one can slow you down in decision making. Keep later critical financing needs viable.

Bootstrapping 120

Bootstrapping Entrepreneur Startup Exit Strategy 120

Gust

OCTOBER 21, 2011

For convertible notes, the only liquidity event we need be concerned with is an acquisition of the startup in the near future, before the maturity date; otherwise, the notes will convert to equity of one kind or another, and the eventual sale of that equity (in a public offering, acquisition, or private sale) is a different subject for another day.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

The Next Web

FEBRUARY 27, 2014

This is typically in conjunction with an upcoming financing or pending takeover offer. Supply and demand. To start, let’s not forget about the obvious: the natural economic principles of supply and demand apply to valuing your business. your equity in a hot new patented technology business), the higher the demand (e.g.,

Valuation 167

Valuation Forecast Seed Stage .Net 167

Gust

OCTOBER 12, 2011

Last week , we took the plunge and began dissecting an example term sheet for a convertible debt financing round piece by piece. In Part II, we looked at the mandatory conversion language that is at the heart of any convertible debt financing. Same, except at the option of the noteholders (per the term sheet example above).

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

Berkonomics

FEBRUARY 21, 2019

Second, almost no professional investor will consider putting that much into a startup until there is proof of market demand, product viability or some other mitigation of failure. Third (if you’re keeping score), it is not wise to dilute the founder’s ownership greatly in the first round of financing.

Dilution 48

Dilution Retention Valuation Startup 48

K9 Ventures

JUNE 12, 2012

You get a situation whether investors are incentivized to put in more money into a company, not only to buy more equity, but also to fund the quick growth. Founders typically get their equity in a company once — at the time of founding and then get diluted with each subsequent round of financing.

Venture Capital 117

Venture Capital Silicon Valley Founder Seed Stage 117

K9 Ventures

JUNE 12, 2012

You get a situation whether investors are incentivized to put in more money into a company, not only to buy more equity, but also to fund the quick growth. Founders typically get their equity in a company once — at the time of founding and then get diluted with each subsequent round of financing.

Venture Capital 105

Venture Capital Silicon Valley Founder Seed Stage 105

Up and Running

MAY 27, 2014

Is this the investor’s first time investing in a company that needs to raise multiple rounds of financing (if you are in fact doing so)? Is the investor asking for a non-dilution clause (a stipulation that their equity shares never dilute) in your operating agreement? (No Is your target market new to the investor?

Angel Investor 119

Angel Investor Dilution Accredited Investor Due Diligence 119

Ben's Blog

MAY 24, 2021

Second, by better matching supply and demand, direct listings have generally mitigated the magnitude of IPO Pops, thus engendering better overall price discovery. Among the findings are: SPAC dilution amounts to roughly 50% of the cash ultimately delivered to the companies brought public. Time Period IPO Pop* 1980-1989 6.1%

SEC 36

SEC Accredited Investor IPO Technical Review 36

Tim Keane

JANUARY 12, 2010

The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay. For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

APRIL 25, 2011

It’s nearly impossible to get a services company financed by VCs. They have created two internal technology “products&# and wanted to figure out how they could turn their services business into a product business that could be financed. You’re a small fish. This team is talented. They wanted advice.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

K9 Ventures

OCTOBER 10, 2017

This post is intended to be a dynamic document, and I will attempt to update it from time to time with new questions that may arise or as financing trends evolve. Q: What amount of financing is considered Pre-Seed? It’s a legitimate stage of financing in the venture eco-system as of this writing (October 2017).

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Berkonomics

FEBRUARY 24, 2012

Second, almost no professional investor will consider putting that much into a startup until there is proof of market demand, product viability or some other mitigation of failure. Third (if you’re keeping score), it is not wise to dilute the founder’s ownership greatly in the first round of financing.

Dilution 72

Dilution Retention Valuation Equity 72

rapidrollout.wordpress.com

JANUARY 15, 2011

He or she might call himself a “consulting CTO,&# “freelance CTO,&# “on-demand CTO,&# “CTO on call,&# “CTO for hire,&# or just a “technology strategy advisor.&# And finally, you may be able to avoid diluting your equity. See my blog post, Startup Advice: When to Use a Consulting CTO.

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

The Startup Lawyer

JUNE 9, 2010

A startup’s Series A financing shouldn’t be a large liquidity event or salary payday for the startup’s founders. The term sheet was pretty much a done deal, when the startup’s CEO demanded a salary of $25,000. It aligns his interest with the equity holders. Not all startup founders understand this tenet.

Salary 99

Salary Term Sheet Liquidation Preference Liquidity Event 99

Up and Running

APRIL 24, 2018

Not only that, but global equity funding to digital health companies reached $3.67 You and your team must know how to think about problems from new angles and adapt to changing market and customer demands. SBIR often offers grants to projects that are deemed risky by the VCs or equity investors. Secure timely funding.

SBIR 73

SBIR Startup Artificial Inteligence Intellectual Property 73

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. By the first quarter of 2016, the late-stage financing market had changed materially. Investors were becoming nervous and were no longer willing to underwrite new Unicorn-level financings at the drop of a hat. It will also minimize future dilution.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Both Sides of the Table

FEBRUARY 14, 2016

The Laws of Supply & Demand. The most basic chart of microeconomics is a supply & demand curve. Demand represents a buyer and supply a seller. In the case of startups the “buyer” is the VC looking to part cash for “purchasing” equity in your startup. Now for every dollar a VC raises $2.50

Valuation 150

Valuation Down Round Startup Later Stage 150

maplebutter.com

JANUARY 8, 2013

If you believe in it – then finance whatever you can yourself. Ideally you can pay them based + equity so that you’ll get their attention and focus on the project. Then decide if you can build more value on either end of that process to demand a higher premium. Co-founders are the highest form of dilution to a business.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Professor VC

JULY 25, 2013

Another closely related area is that of variable pricing on convertible debt or equity deals where different investors have different caps. Angel Investors Silicon Valley term sheets venture financing venture capital' Generally (but not always) it is investors that came on board a little earlier.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

K9 Ventures

NOVEMBER 21, 2011

And that too usually when there is sufficient investor demand for the next round, i.e. the leverage needs to be in the company’s hand (rather than investors) for any type of founder liquidity to even be an option. The concept of the Series FF stock is a good example of this.

Founder 87

Founder Common Stock Preferred Stock Stock 87

K9 Ventures

NOVEMBER 21, 2011

And that too usually when there is sufficient investor demand for the next round, i.e. the leverage needs to be in the company’s hand (rather than investors) for any type of founder liquidity to even be an option. The concept of the Series FF stock is a good example of this.

Founder 84

Founder Common Stock Preferred Stock Stock 84

crowdSPRING Blog

DECEMBER 13, 2018

As we wrote in Brand Health, 6 Important Questions You Should Ask About Your Small Business Brand , Brand health can be measured in numerous ways, including brand reputation, brand awareness, brand equity, brand positioning, and brand delivery. Consistent, strategic branding allows your business to grow strong brand equity.

Marketing 162

Marketing Charlotte Naming Design 162