Trending Sources

Probability Distributions and the Brute Force Approach

Rob Go

I’ve been thinking a lot about the outcome distributions in different circumstances. find that most people are not tuned to this sort of outcome distribution. notice a lot of people are tuned to this kind of outcome distribution, and that colors the way that they go about solving problems. Same thing for many sports.

Mathematical vs. Economic Dilution of Startup Equity: Thinner Slices of an Extra-Large Pizza


The themes of equity ownership and Board control will converge in my next post, where we’ll discuss clashes at the Board and shareholder level.

The Right Way to Grant Equity to Your Employees

Redeye VC

is the virtually universal practice among tech companies of distributing meaningful equity (usually in the form of stock options) to ordinary employees. Before companies like Fairchild and Hewlett-Packard began the practice fifty years ago, distributing stock options to anyone other than top management was virtually unheard of.

How to Divide Equity to Startup Founders, Advisors, and Employees

How to Divide Equity to Startup Founders, Advisors, and Employees. Equity for Founders. From there you can get the percentage of equity.

Quality over quantity on The Equity Kicker

The Equity Kicker

In summary, posting frequency no longer effects distribution. Robert Scoble is perhaps the greatest blogger of them all, so when I started blogging in 2006 I read  Naked Conversations , his guide to blogging. One of his tips was to post every day. tried them all, but Netvibes was my favourite. But the world has changed. Announcement

Angel Investors Skip Startups With No Profit Motive

Startup Professionals Musings

Angel investors and venture capitalists don’t make equity investments in non-profits. There is no discussion of equity, or return on investment.

Deciding How Much Equity to Give - How Much is Less Important Than What It's Worth!

Small Business Force

Equity and percentage ownership has always been a lightning rod for discussion and controversy with startups and entrepreneurs. He's been there.

Private Equity Investing: Secrets of Doing it Right (Part I)

Growthink Blog

Well, in most forms of angel and early-stage private equity investing, these breakdowns flow from a misunderstanding of the power and nature of outliers. And, correspondingly, returns of this scale crowd out and widely skew the distribution to fewer, higher returning deals. Second, it carries an extreme impact. And so on and so on.

How much equity do I give an advisor? What do they give me?

The Startup Toolkit

Those numbers get completely thrown out when the advisor is your distribution channel. Going back to the more normal 0.5-2%, you treat advisor equity just like founder or employee equity: vested over 4 years. year vesting, full acceleration on exit, optional cliff. It takes 2 hours per month to advise me. Founders

Private Equity Bankrupted My Company

Fresh Inc.: The Staff Blog

Oreck used to be one of the biggest names in the vacuum cleaner business. Ten years after he sold his company, David Oreck reflects on what happened.

Debt Or Equity To Fund Your Start-up: Which Is Better?


Loan financing and equity investment are two common methods of funding a new business start-up, assuming you do not have the capital on your own.

Should We Celebrate Equity Crowdfunding At The First Investment Or First Exit?


The countries in the ArcticStartup region have their own legislative quirks, but equity crowdfunding is here, there's no doubt about it.

What is Growth Equity, Anyway? And When Do You Need It?

Fresh Inc.: The Staff Blog

Now you have to develop worldwide sales and distribution, hire hundreds of employees, and most painfully, upgrade your team. Congratulations.

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How Cash Distributions Work

Bryce Dot VC

terms is the option for founders to make cash distributions to investors from profits as a return on their investment instead of selling out or taking their company public to create a liquidity event. model, founders who choose not to sell out or raise money from traditional VCs have the option to make cash distributions to investors.

Invesdor Launches Equity-Crowdfunding Platform That Skips The Paperwork


An ambitious new equity-crowdfunding player for Finland and Sweden-based startups has opened up publicly today. Post-paperwork?

Entrepreneur Startup Share Depends on Contribution

Startup Professionals Musings

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Funding.

[Asia] Online Equity Crowdfunding Platform For Startups SeedAsia Sprouts In Shanghai


Until this month. Designed to be as much informational as it is a financial one, like many of the U.S.-based

2 Disjointed Thoughts: Product Distribution Fit and Founder Heuristics

Rob Go

Product / Distribution Fit. My friend Brian Balfour wrote a blog post yesterday about emerging distribution channels and how they impact innovation.  It’s a great post – read the entire thing. One point he makes is that in even established vertical, new companies tend to rise on the back of new distribution channels.

How To Break Up A Business Partnership

Mike Michalowicz

”  That equity split of 50/50 made total sense back then. So the time to break ways with your business partner has finally come, huh? 

Experiment and Scandal

A VC : Venture Capital and Technology

Rinse, repeat, rinse, repeat and you get unicorns and distributed autonomous funding mechanisms entrusted with hundreds of millions before anything has even been funded. Don’t get me wrong. I am all for distributed autonomous organizations and the innovation behind them and in front of them. They are not happening in the lab.

Do It Right The First Time, Part II: Visit the Doctor or House Call?


Readers can anticipate my next point in continuing the analogy:  It makes no more sense for a non-lawyer to prepare fundamental legal, governance, equity and intellectual property documents than it would for a patient to self-diagnose and begin taking prescription-strength antibiotics or other medications. The risk is simply too great. 

Splitting Equity

Force of Good: a blog by Lance Weatherby

The subject of startup equity distribution is one that seems to generate a lot of interest. How much equity should you give a partner? Divide Not a bad starting point for a more serious discussion about equity split. wish I had have written this one line, " The rules are: I''m going to give no explanations. Number seven.

Considering ILPA Private Equity Principles

Recent Buzzes - VC Experts, Inc.

Last year the Institutional Limited Partners Association (ILPA), a voluntary organization dedicated to the interests of institutional limited partners in private equity funds, released its Private Equity Principles. Some of the more significant "Best Practices" offered by the ILPA include: Distributions. Deringer, John J.

Splitting Startup Equity for Your Piece of the Pie

Startup Professionals Musings

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Funding.

The Funding Gap


This graphic shows that the distribution of funding is not uniform across the spectrum of rounds size in dollars. ANNUAL US $$$. REFERENCE.

Fund Level Vs Deal By Deal Carry

A VC : Venture Capital and Technology

It is more common in private equity where the distribution of outcomes looks very differently. In a venture fund, the general partners will make something like twenty or twenty five investments. There are outliers for sure. A few venture funds will make less investments than that. But that’s not the point of this post.

Super Specialized Wine and Film Private Equity Funds

Entrepreneurial Growth Culture

Nowadays, many people will pull out their red flag if told that some sophisticated financiers are creating specialized private equity funds. Based in the United States, Bacchus Capital Management specializes in mezzanine and private equity wine industry investments, principally in California’s premium wineries. Hispanic market.

Should You Share Equity with Consultants?

Should You Share Equity with Consultants? To grow his cash-strapped start-up, Parker ended up sharing equity -- not only with employees, but also with consultants and vendors. Parker found that equity as compensation helped build loyalty to his company -- even among consultants. But sharing equity can have pitfalls, too.

Exits in Canada: May 2016


Only 1 deal had a disclosed value ($ 14M). 2 of the companies were in Toronto, 3 in Ottawa, 2 in Vancouver, the rest were distributed. No private equity deals this month. May was another ‘meh’ month for software acquisitions in Canada.  Highlights: Highlights: 9 deals announced (11 last month). Same as last month.

Exits in Canada: March 2016


No private equity deals this month. Highlights: 15 deals announced (14 last month, 8 in January). deals had a disclosed value.

Crowd-Funding Success Usually Brings New Challenges


But safely seeking equity investments from the crowd via the Jobs Act of 2012 is problematic and has still not been defined.

Exits in Canada: February 2016


buyer was a private equity firm. 1 was a management buyout. We work primarily with SaaS, e-commerce and marketplace companies. years.

How Smart Startups Survive Investor Due Diligence

Startup Professionals Musings

That might start with the CEO giving the investor pitch to the whole organization, and distributing the current business plan document to everyone.

Top Startup Mistake 8: Misunderstanding Equity

Up and Running

Make your equity count. There is only 100 percent ownership in a company. It lasts forever. This is so often a no-win solution. Be careful.

Free Startup CTO Consulting Sessions


Send your overview to me (Tony Karrer): Based on the type of business, we will distribute it to someone who is most appropriate. I'm looking for free (equity only) development, should I contact you? See Equity-Only CTO and Equity-Only Developers for more on this. What Is This? How Does it Work?

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An Update on

Bryce Dot VC

Terms We’ve worked with the team at Cooley to create an investment instrument that has elements of both debt and equity. Debt in that we will not be purchasing equity initially, but, unlike debt, there is no maturity date, no collateralization of assets and no recourse if it’s never paid back. Within the

9 Marketing Buzzwords That You Need To Know


Brand equity. Brand equity is the value of a brand. This is the third part in the series of marketing buzzwords we keep sharing with you.

Crowd-Funding Success Usually Brings New Challenges

Startup Professionals Musings

But safely seeking equity investments from the crowd via the Jobs Act of 2012 is problematic and has still not been defined. Marty Zwilling.

Book: Flash Boys: A Wall Street Revolt

Feld Thoughts

In 1998, when I started ending up with lots of shares in public Internet companies, I came up with a formulaic approach for any public equities that are distributed to me (either from our funds or other VC funds). A cliche I’ve heard many times is “Wall Street Always Wins.” Or a weekly basis. Or basically, at all.

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One Of Our Investors Just Closed Shop. What Should We Do?

Ask The VC

Distribution of shares to a liquidating trust : In this case, the equity in your company held by the VC fund now belongs to a completely passive entity that is simply going to exist until the shares become liquid, either through a sale or an IPO. 2.  There are lots of specific points in time to consider.

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