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5 Equity Distribution Parameters For Key Contributors

Startup Professionals Musings

Investors may not be called cofounders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. Amount of venture funding provided. The challenge is for real cofounders to keep their equity percentage above 50%, or they effectively lose control of operational decisions.

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What Does the Post Crash VC Market Look Like?

Both Sides of the Table

We drew this conclusion after a meeting we had with Morgan Stanley where they showed us historical 15 & 20 year valuation trends and we all discussed what we thought this meant. But rest assured valuations get reset. First in late-stage tech companies and then it will filter back to Growth and then A and ultimately Seed Rounds.

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Seed Stage Funding 101: What it Is & How it Works

The Startup Magazine

I will tell you brief details about seed stage funding, and deal sourcing on this page, so read the conclusion until the end. The following is a condensed explanation of seed funding: Seed money is a form of early-stage financing that new businesses receive from investors in exchange for a share of ownership in the company.

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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. I just want to figure out what a fair valuation is.&# I figured all the VC’s talked so we should. This starts with understanding how VCs and entrepreneurs often see valuation differently.

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Why a Company Can’t “Be More Like a Startup”

Steve Blank

If they select a business model that targets industry incumbents, they don’t have to worry about upsetting existing customers, partners or distribution channels. Existing companies also use network effects of monopolies/duopolies, distribution channel kickbacks, etc., to stifle competition.). Here are some of the most visible examples.

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Hammer or Hands?

View from Seed

I think a big question facing early stage investors is: are you a hammer? In the prior era of early stage investing, pre-seeds and seeds “fit” into neat buckets slotted in ahead of the neat buckets of series A’s and B’s. Some folks will continue to define stages in narrow terms.

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How to Talk About Valuation When a VC Asks

Both Sides of the Table

I thought I’d write a post about how to talk about valuation at a startup and give you some sense of what might be on the mind of the person considering funding you. It’s not uncommon for a VC to ask you how much capital you’ve raised and what the post-money valuation was on your last round. is to start with just the data.

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