Startup Professionals Musings

APRIL 12, 2021

In my experience as a business advisor and occasional investor, many of you won’t make it that far, succumbing to the high costs of getting those first customers, funding an initial inventory, and building an operational support process. Actively seek out government and local incentives.

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Dilution Incubator Bootstrapping Government 404

Startup Professionals Musings

JANUARY 26, 2019

This usually means not taking money from equity investors, since investors want fast growth, high profits, and an exit event, to allow investments to be recouped. Non-equity funding has to come from personal sources, or government grants, or bank loans. Corporate versus personal growth really becomes a lifestyle decision.

Startup 194

Startup Equity Dilution LLC 194

Both Sides of the Table

SEPTEMBER 10, 2021

We operate at scale and speed unprecedented in human history.” * I first wrote about the changes to the Venture Capital ecosystem 10 years ago and this still serves as a good primer of how we arrived at 2011, a decade on from the Web 1.0 dot-com bonanza. A seed round these days is $3–5 million or more! So in a way it’s self selecting.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

Seeing Both Sides

AUGUST 28, 2017

Perhaps, when things settle down a bit more, those companies will even raise series A capital from traditional institutional sources to expand the product features, beef up the operations team more fully and make progress in finding initial product-market fit. Shift of value from equity holders to token holders. Fuzzy Governance.

Early Stage 20

Early Stage Equity Venture Capital Government 20

Seeing Both Sides

AUGUST 28, 2017

Perhaps, when things settle down a bit more, those companies will even raise series A capital from traditional institutional sources to expand the product features, beef up the operations team more fully and make progress in finding initial product-market fit. Shift of value from equity holders to token holders. Fuzzy Governance.

Early Stage 20

Early Stage Equity Venture Capital Government 20

Startup Professionals Musings

MAY 19, 2014

A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. Since government grants are funded by tax dollars for specific industries and research, usage of grant funds is carefully monitored. To the investors, it means less dilution and lower overall risk.

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Seed Money SBIR Dilution Government 242

Startup Professionals Musings

JANUARY 21, 2017

This usually means not taking money from equity investors, since investors want fast growth, high profits, and an exit event, to allow investments to be recouped. Non-equity funding has to come from personal sources, or government grants, or bank loans. Corporate versus personal growth really becomes a lifestyle decision.

Entrepreneur 120

Entrepreneur Equity Dilution LLC 120

Startup Professionals Musings

NOVEMBER 4, 2013

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. Increasing government regulations. Consider the recent example of Facebook and Mark Zuckerberg.

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IPO Founder Exit Strategy Investment Bankers 224

Startup Professionals Musings

SEPTEMBER 30, 2012

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. Increasing government regulations. Consider the recent example of Facebook and Mark Zuckerberg.

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Exit Strategy IPO Investment Bankers Entrepreneur 239

Startup Professionals Musings

JULY 3, 2015

In reality, this option is a nightmare that can bump you out of the driver seat, dilute your equity and create a business entity you can’t control. Extensive government reporting and compliance rules. All strategy and operational moves become public. Private companies are largely exempt from these reporting requirements.

IPO 120

IPO Initial Public Offering Entrepreneur Private Equity 120

Gust

MAY 11, 2014

A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. Since government grants are funded by tax dollars for specific industries and research, usage of grant funds is carefully monitored. To the investors, it means less dilution and lower overall risk.

Seed Money 164

Seed Money SBIR Dilution Government 164

Startup Professionals Musings

JULY 5, 2011

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. Increasing government regulations. Pressures to maintain growth pattern.

Exit Strategy 235

Exit Strategy IPO Investment Bankers Entrepreneur 235

Up and Running

APRIL 24, 2018

Not only that, but global equity funding to digital health companies reached $3.67 Health care ethics are the moral principles and values that allow you to make the right choice while promoting, distributing, and operating your product to healthcare organizations or patients directly. billion in 2017 YTD (as of May 22, 2017).

SBIR 73

SBIR Startup Artificial Inteligence Intellectual Property 73

The Equity Kicker

APRIL 13, 2012

Given Google’s success, it’s unsurprising that this type of dual-class governance structure is now somewhat standard among newer technology companies. For example, it took over three years just to ship our first Android handset, and then another three years on top of that before the operating system truly reached critical mass.

Dilution 87

Dilution Stock Government SEC 87

Austin Startup

MARCH 7, 2021

Are they running from high prices, high taxes, dysfunctional government, and wildfires? All of the investors, all of the big companies, all of the government groups?—?they In fact, the Houston city government ranks number onein the country in renewable energy use. What’s bringing them here? Count all of the people you know!

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Texas San Antonio Houston Dallas 90

David Teten

OCTOBER 1, 2015

portfolio operator VCs, e.g., Andreessen Horowitz, ff Venture Capital, First Round Capital, Google Ventures. portfolio operator VCs, e.g., Andreessen Horowitz, ff Venture Capital, First Round Capital, Google Ventures. equity that belongs to departed cofounders)? mentor VCs, e.g., most VCs. mentor VCs, e.g., most VCs. The cliffs?

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Software Developers Software Development Software Review Technical Cofounder 60

www.paulgraham.com

APRIL 28, 2010

Most startups operate close to themargin of failure, and the distraction of having to deal with clientscould be enough to put you over the edge. Whatkind of anti-dilution protection do they want? And we think its better if startups operate out of their ownpremises, however crappy, than the offices of their investors.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Transformify

FEBRUARY 1, 2019

Freedom to Operate. Taking this route has one obvious advantage and it is the fact that the entrepreneur remains in control of the business and no equity is acquired by third parties. Grants & Government-backed loans. mio which are available to growing businesses that need more funding to scale their operations.

Affiliate 49

Affiliate Equity Valuation SEO 49

abovethecrowd.com

APRIL 20, 2016

As discussed above, these terms can cleverly fool the inexperienced operator, because they are able to “meet the ask” with respect to cover valuation, and the accepting founder does not realize the carnage that will come down the road. It will also minimize future dilution. This is uncharted territory. Now you make your own decisions.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Reid Hoffman

JUNE 8, 2021

And all of the other smart and operational decisions that have enabled Airbnb to weather the storm and go on to have one of the most successful public market debuts. In our case, society, we call the 900,000 communities we operate in. Most boards have an audit committee, a nominating governance committee and a comp committee.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

Reid Hoffman

JUNE 8, 2021

And all of the other smart and operational decisions that have enabled Airbnb to weather the storm and go on to have one of the most successful public market debuts. In our case, society, we call the 900,000 communities we operate in. Most boards have an audit committee, a nominating governance committee and a comp committee.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

Startup Professionals Musings

OCTOBER 10, 2013

This usually means not taking money from equity investors, since investors want fast growth, high profits, and an exit event, to allow investments to be recouped. Non-equity funding has to come from personal sources, or government grants, or bank loans. Corporate versus personal growth really becomes a lifestyle decision.

Founder 231

Founder Equity Dilution LLC 231

Startup Professionals Musings

SEPTEMBER 10, 2012

This usually means not taking money from equity investors, since investors want fast growth, high profits, and an exit event, to allow investments to be recouped. Non-equity funding has to come from personal sources, or government grants, or bank loans. Corporate versus personal growth really becomes a lifestyle decision.

Entrepreneur 241

Entrepreneur Equity Dilution LLC 241