article thumbnail

Early Stage Advisor Equity Grants

Eric Friedman

I have been thinking about early stage equity and advisor grants for some time, including a post in 2016 , that I rely on and wanted to revisit. If you are looking for a primer or how much early stage equity to grant to advisors, this is it. What is an early stage advisor? Level 2 (~.50%):

article thumbnail

Launching a Portfolio Acceleration Platform at a Venture Capital or Private Equity Fund

David Teten

I’ve recently advised a number of emerging private equity and VC funds who are wrestling with the question: What are the highest impact steps they can take to support their portfolio companies? . Almost every private equity and venture capital investor now advertises that they have a platform to support their portfolio companies.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . But we’re doing it slowly. 4) Manage deal flow.

article thumbnail

Free Startup Docs: How Much Equity Should Advisors Get?

techcrunch.com

Free Startup Docs: How Much Equity Should Advisors Get? It’s an age-old scenario: You’re building a company, you have a product idea, and you’ve got the framework laid out in your head, but you want some expert advice and guidance on how to take the next steps. Digital Cameras. Headphones. CrunchBase. Hot topics.

Equity 94
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. On average, founders own just 43% of equity by Series B , declining thereafter. Flexible VC 102: Variations.

article thumbnail

Web-Based Worthworm Helps Determine PMV For Startup Investment Purposes

YoungUpstarts

“The reality is that there has not been a reliable, simple, or cost-effective way to calculate an early stage company’s valuation – which is why so many entrepreneurs and angel investors get it wrong,” says Alan Lobock, co-founder of Worthworm. ” Ideaspotting investment pre-money valuation valuation Worthworm'

article thumbnail

Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Though RBI will displace some traditional equity VC, its much bigger impact will be to expand the pool of capital available for early-stage entrepreneurs. . So what is Revenue Based Investing?

Revenue 60