View from Seed

SEPTEMBER 14, 2021

Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less. The key takeaway is that it seems like the top of the pack is moving further away from the rest, and the power law is increasing. So, to conclude, are we in a bit of a bubble?

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

David Teten

SEPTEMBER 2, 2017

It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. Also see Preqin’s Key Due Diligence Considerations for Private Equity Investors. . VC and private equity are very illiquid on both the investing and the personnel side. So assessing fit is critical.

Private Equity 60

Private Equity Venture Capital Equity Partner 60

View from Seed

SEPTEMBER 14, 2021

Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less. The key takeaway is that it seems like the top of the pack is moving further away from the rest, and the power law is increasing. So, to conclude, are we in a bit of a bubble?

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

Both Sides of the Table

SEPTEMBER 29, 2009

The rest of this post series deals with the reasons why VC froze up in the first place, why investments have heated up recently and why the future of VC funding at the current pace is not certain. They should heed the age old advice that raising slightly more money while you can is always better than trying to optimize future valuations.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

venturehacks.com

SEPTEMBER 22, 2011

The Equity Equation. As this nuclear winter of venture hacks continues, I thought you might enjoy our thoughts on Paul Graham’s The Equity Equation. ” Read the rest of The Equity Equation first; it is great. You have to pay market rates regardless of the equity equation. SUPPORTED BY. venturehacks.

Equity 40

Equity Cap Table Valuation RSS 40

View from Seed

SEPTEMBER 14, 2021

Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less. The key takeaway is that it seems like the top of the pack is moving further away from the rest, and the power law is increasing. So, to conclude, are we in a bit of a bubble?

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Transformify

JULY 23, 2018

To boost innovation and SME sector growth, the EU Commission has launched the SME Instrument of the Horizon 2020 program – the largest non-dilutive fund in the world. Why non-dilutive? It is a grant, not an equity funding. The startups are not selling equity or issuing new shares. Do you need to pay to consultants?

Intellectual Property 66

Intellectual Property Angel Investor Dilution Startup 66

Lightspeed Venture Partners

OCTOBER 14, 2012

Instead of taking equity, he asked for a $2 per dress royalty until he recovered his capital, then $1 per dress thereafter. How should the entrepreneur think about Kevin’s royalty offer against Lori and Daymond’s equity offer? Kevin’s offer seems to be pretty attractive given that there is no equity dilution.

Equity 158

Equity Dilution Redemption Distribution 158

Austin Startup

MARCH 7, 2021

Now the 9th largest economy in the world, it‘s clear that the rest of the world is waking up to the potential in Texas. In 2019 and 2020, we saw hundreds of millions of dollars in non-dilutive funding go to Texas startups, most of which had never worked with the government before. Each city has its own special character.

Texas 90

Texas San Antonio Houston Dallas 90

Genuine VC

FEBRUARY 28, 2011

This post doesn’t going into general tactical approaches of job offer negotiation, but rather focuses on the fact that with startups a significant part of compensation is related to equity or options. It is essential that you ask the “number of fully-diluted shares outstanding.” Senior-level position. Early-Stage.

Startup 121

Startup Equity Vesting Salary 121

Up and Running

APRIL 24, 2018

Not only that, but global equity funding to digital health companies reached $3.67 However, you can certainly raise some of the capital through bootstrapping and the rest via seed funding. Venture capital, angel investors, and equity investment platforms (crowdfunding) seem to be the most popular options in the healthcare industry.

SBIR 73

SBIR Startup Artificial Inteligence Intellectual Property 73

The Next Web

OCTOBER 7, 2013

Often difficult to get, the first engineer sets the tone for the rest of the development team. Quite frankly, waiting provides more assurance around employment risk without the commensurate sacrifice in equity comp. Every time a startup raises capital, all common shareholders are diluted. So let’s say you have an offer in hand.

Engineer 129

Engineer Dilution Option Pool Vesting 129

Rob Go

JUNE 10, 2013

This means you can go either way on much of the rest of it and it doesn’t really matter. Keep salaries low and equity high. Worry more about making sure you pass than an extra point of dilution. Eliminate distractions. You’ll often hear conflicting advice about everything but “build a great product”. You make what you measure.

Startup 49

Startup Technical Cofounder Hiring Cofounder 49

View from Seed

JANUARY 26, 2016

To ensure you receive the rest, subscribe here. Third, founders at this stage have an incentive to minimize dilution at the point when their equity is the least valuable. This is the first of several blog posts discussing pre-seed rounds. In this post, I want to answer the question, “What are pre-seed rounds?”

Seed Stage 120

Seed Stage Early Stage Cofounder Finance 120

ithacaVC

OCTOBER 16, 2011

Originally, let’s say that Founder C and Founder L verbally agree (prior to formal entity formation) that the initial equity split between them would be 51% to Founder C and 49% to Founder L. This will typically follow the equity split so in this hypo Founder C would be in charge. This starts an interesting process.

Vesting 56

Vesting Cofounder Equity Dilution 56

The Equity Kicker

MAY 14, 2012

However, raising lots of money to buy lots of time is great if you can do it, but for a lot of startups it won’t be possible, at least not without excessive dilution. November – retail partner decision to roll-out product to rest of stores. July – pilot deal with a major retail partner goes live.

Finance 118

Finance Valuation Venture Capital Dilution 118

blog.simeonov.com

FEBRUARY 22, 2010

In one case the CEO had a different vesting schedule because he had spent a lot more time than the rest of the founding team on the idea. It outlines key points of agreement between founders around IP ownership, equity ownership, vesting, etc. The rest of the equity typically vests monthly with no cliff for 3-5 years.

Founder 44

Founder Vesting Agile Startup 44

Seeing Both Sides

JANUARY 4, 2012

Your employees start doing what I call "phantom equity math" (if this company were worth a billion dollars, I'd become a multimillionare!), Raising capital can be a hugely distracting, draining process and the dilution implications, as well as the choice of investors, has deep repercussions on your future options.

Lean 53

Lean Dilution Revenue Hiring 53

Professor VC

JUNE 20, 2011

But of course, the model had us requiring only $10M equity to breakeven and to achieve $185M in revenues in 2008 (the magic Year 5 in all business plans). The business model (OEM through broadband and home security companies for mass distribution) if not specific product functionality has remained largely the same. So what does this all mean.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

Both Sides of the Table

NOVEMBER 23, 2012

And equal numbers of startups seeking celebrity endorsements in exchange for equity. Don’t give up your hard-earned equity to celebrities. So having a huge celeb who takes 10% of your company is – well – taking 10% dilution for 0% benefit. And now that leaves 95% of the rest of you. It is a waste.

Startup 321

Startup Equity Warrant Dilution 321

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. This means that horizontal is the most restful and stable line position.

Marketing 162

Marketing Charlotte Naming Design 162

venturehacks.com

OCTOBER 21, 2010

Reading on, the term sheet states, “The $8 million pre-money valuation includes an option pool equal to 20% of the post-financing fully diluted capitalization.&# First, the option pool only dilutes the common stockholders. It states that the share price is $1.00… this must be a mistake!

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

maplebutter.com

JANUARY 8, 2013

However, one of my co-founders doesn’t seem to be as motivated as the rest of us. Ideally you can pay them based + equity so that you’ll get their attention and focus on the project. There’s no formula however I do know … the more you build before you need to hire / partner, the more equity you can keep. A few nuggets.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

venturehacks.com

MARCH 21, 2008

See Part 1 for the rest. If your company hasn’t raised a Series A, increase the advisor’s equity by roughly 30%-50% to account for dilution from seed investors, Series A investors, option pools, swimming pools, and the like. Finally, there is a beauty to paying in equity rather than an equivalent amount of cash.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

www.paulgraham.com

APRIL 28, 2010

Dilution is normal. They cant dilute you without diluting themselves justas much. And they wont dilute themselves unless they end up net ahead. So its your choicewhether you get diluted. [ Plus you get equity. Im not saying you should always absolutely refuse to give up youranti-dilution protections.

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63

The Next Web

DECEMBER 3, 2013

So we tend to go with one person, but we do like to see the team so even if that’s during the Q&A, you should bring up the rest of the team for questions.”. We saw a few quite recently where founders had given up 70 percent of equity to a really early stage seed investor,” Campbell said. Pick a confident speaker.

Startup 153

Startup Cofounder Valuation Dilution 153

Reid Hoffman

JUNE 8, 2021

Two follow-up questions to this, and you mentioned design, which we’re going to get to in a moment, because I think that’s a super important thing to understand about you and about Airbnb and all the rest. And I made a decision not to do an equity round, because I thought it would be a down round. So these are some checklists.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

Reid Hoffman

JUNE 8, 2021

Two follow-up questions to this, and you mentioned design, which we’re going to get to in a moment, because I think that’s a super important thing to understand about you and about Airbnb and all the rest. And I made a decision not to do an equity round, because I thought it would be a down round. So these are some checklists.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

Life Beyond Code

SEPTEMBER 27, 2011

Once the $1 million revenue milestone is crossed, entrepreneurs find it easier to find additional customers, manage working capital, and access funding, whether it is credit or equity. The rest of the services are for paying members only. The public roundtable is a free program accessible from anywhere in the world.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116

Up and Running

DECEMBER 9, 2014

Jared could you quickly tell us what are the pros and cons of a bank loan versus an investment for equity? The pro is that it’s cheap capital and it’s not diluted. You effectively become an employee of your equity holders which also has pros and cons as well. Are you going for private equity?

Small Business 95

Small Business Finance Forecast Metrics 95