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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Similarly, when Flexible VC structures are based off of the founder’s own compensation (often via salary or dividends), investors are specifically tying their returns to the financial success of the founder. Founder Earnings” (Founder Salaries + Dividends + Retained Earnings). Profits, Founder Salaries, and/or Dividends Declared.

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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

Finance 70
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What type of entity should I form?

Startup Company Lawyer

C corps, LLCs, and S corps differ significantly in the areas of taxation, ownership, fundraising, governance and structure, and employee compensation. Any company that raises venture financing will need to be a C corp in order to issue preferred stock. In any event, the S corp election can be easily revoked at the time of a financing.

LLC 61
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A guide to investing for income and where to find it

The Startup Magazine

But as you build your empire, it’s important not to neglect other areas of your finances – namely your pension and savings. Another option is buying shares in individual companies that have the potential to pay out a share of the profits – known as dividends – to shareholders. There seems to be little time for anything else.

Dividend 158
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How Startup Valuations are Driving Company Equity

ReadWriteStart

Dividends paid and capital gains realized on a per-share basis provide ordinary shareholders with a way to participate in the profits stream of the company. The establishment of a dividend policy. Other aspects of organizational governance. They need to ensure that the shares are distributed productively. Common stock.

Valuation 108
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On the Road to Recap:

abovethecrowd.com

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. This is uncharted territory.

IPO 40
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5 Critical Tips to Reduce Your Business Taxes This Year [WEBINAR]

Up and Running

But basically, your personal finances and business finances are little more intermixed when it’s pass-through entity. How you get that money out of the corp, where you have to give to yourself either as owner wages, or you have to give to yourself as dividend income. It’s only taxed once at the individual level.

.Net 85