Startup Professionals Musings

MAY 18, 2015

Even though initial stock has no value or market, it is extremely valuable in dividing entity ownership between multiple co-founders, commensurate with their investment, contribution and role. Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out.

Stock 120

Stock Vesting Common Stock Founder Vesting 120

Steve Blank

JULY 15, 2010

Number of Venture Backed Liquidity Events 1991-2000. Number of Venture Backed Liquidity Events 2000-2010. They’ve created virtual IPO’s for founders and employees via late-stage private financing. If you’re starting a software company, your exit is most likely a sale to a larger company. Source: NVCA.).

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

Gust

OCTOBER 21, 2011

This week we move on to something near and dear to the hearts of entrepreneurs and investors alike: The exit, more formally known as a “ liquidity event.” In descending order of preference from the founders’ point of view: 1. a) payable upon demand as of the closing of such transaction; or. (b)

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). The liquidation preference would not apply in this situation, and any distribution to stockholders would trigger the dividend preference. Co-sale rights.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

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. While a startup typically receives millions of dollars in a Series A, if too much of that $$$ flows guaranteed to the founders, various incentives get out of whack. Case Study.

Salary 99

Salary Term Sheet Liquidation Preference Liquidity Event 99

Steve Blank

JUNE 11, 2013

These are great, but they are not repeatable by a sales organization. The test is: If you add one more sales person or spend more marketing dollars, does your sales revenue go up by more than your expenses? • Business model : A business model answers the basic questions about your entire business: Who are the customers?

Venture Capital 333

Venture Capital IRR Liquidity Event Business Model 333

Steve Blank

JUNE 11, 2013

These are great, but they are not repeatable by a sales organization. The test is: If you add one more sales person or spend more marketing dollars, does your sales revenue go up by more than your expenses? • Business model : A business model answers the basic questions about your entire business: Who are the customers?

Venture Capital 225

Venture Capital IRR Liquidity Event Business Model 225

abovethecrowd.com

APRIL 20, 2016

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. We have already seen examples of founders and management obtaining liquidity in front of investors.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

www.quora.com

JANUARY 16, 2011

Find Questions, Topics and People Add Question Add Question Non-Technical Co-Founders Co-Founders Technical Co-founders Finding Co-Founders Startups & "How Important Are Ideas?" " Web Development Startups Solo Founders I am a creative guy with a startup idea.

Developer 42

Developer Technical Review Cofounder Technical Cofounder 42

www.vccafe.com

MARCH 11, 2013

.” Hackernews list of “Tools of the Trade” for startups - includes over 150 SaaS tools used by startups, and over 150 comments with interesting insights from founders. on demand billing and fraud management. turn customer feedback into sales and relationships. Founders Institute Plain Preferred Term Sheet â??

Software Review 53

Software Review Technical Review Startup 53