YoungUpstarts

JULY 31, 2019

But “fundraising debt” comes into the picture when you raise too much too early, diluting your business at the beginning of the venture, with no real plan or unrealistic projections for how your business will scale. They need to comply with laws, create back-end processes, and build prototypes — all of which cost money. Fundraising debt.

Cofounder 127

Cofounder Burn Rate Technical Cofounder Seed Capital 127

Both Sides of the Table

SEPTEMBER 28, 2014

it is also the title of a fabulous book from Internet 1.0 In startup world low GM almost always equals death which is why many Internet retailers have failed or are failing (many operated at 35% gross margins). So money spent should add equity value or create IP that eventually will.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

View from Seed

DECEMBER 4, 2014

It’s also worth keeping in mind that regardless of how the founders’ common stock is divided, there will be future issuance of stock that will dilute the founders over the lifecycle of the company. Ideation/IP. You can then work with your law firm to formally draw up founder common stock paperwork either then or subsequently.

Equity 315

Equity Founder Sweat Equity Cofounder 315

Agile VC

DECEMBER 4, 2014

It’s also worth keeping in mind that regardless of how the founders’ common stock is divided, there will be future issuance of stock that will dilute the founders over the lifecycle of the company. You can then work with your law firm to formally draw up founder common stock paperwork either then or subsequently.

Cofounder 255

Cofounder Equity Founder Sweat Equity 255

Agile VC

DECEMBER 4, 2014

It’s also worth keeping in mind that regardless of how the founders’ common stock is divided, there will be future issuance of stock that will dilute the founders over the lifecycle of the company. You can then work with your law firm to formally draw up founder common stock paperwork either then or subsequently.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

VC Cafe

SEPTEMBER 26, 2010

Patents are nice but… in a consumer Internet business, it’s most likely that you aren’t re-inventing the wheel. It’s nice to have protected IP, but that will mostly matter later on in the event of an acquisition. Patented Technology?

Elevator Pitch 102

Elevator Pitch Incubator Technical Review Startup 102

Andrew Payne

JULY 7, 2010

I’ve written before about the “weedy ecosystem” Being just smart is not sufficient, because entrepreneurship is ultimately zero-sum: a dumb, poorly funded set of competitors will still steal mind-share, confuse customers, confuse investors, dilute your brand, and make it harder to build your business.

IP 47

IP Angel Investor Dilution Valuation 47