Berkonomics

DECEMBER 17, 2020

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. There are other classes of equity investors for small or early stage businesses that we have not yet considered. Friends and family investors. Angel investment groups or funds. And the one thing in common?

Equity 62

Equity Finance Liquidity Event Angel Groups 62

Gust

OCTOBER 21, 2011

This week we move on to something near and dear to the hearts of entrepreneurs and investors alike: The exit, more formally known as a “ liquidity event.” In descending order of preference from the founders’ point of view: 1. Suppose the notes converted as if the acquisition were an eligible financing round.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For

Finance 134

Finance Convertible Security Equity Seed Stage 134

Hunter Walker

MARCH 8, 2014

If you’re graduating this spring and starting a career in tech, I’ve got one piece of advice: go work at a midstage startup (I’ll define that as B/C rounds of financing – eg Twilio, Stripe, Airbnb, Warby). There aren’t yet four layers of management between you and the founders. Here’s why: 1.

Liquidity Event 134

Liquidity Event Early Stage Seed Stage Startup 134

David Teten

AUGUST 21, 2019

Most founders who are raising capital look first to traditional equity VCs. Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. But should they? Optionality.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). For you who fit that description, nice work. Taking this kind of money has a number of pitfalls you should be aware of.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Both Sides of the Table

SEPTEMBER 27, 2010

A new group of investors have clustered around writing earlier-stage, smaller checks. And people like Jeff Clavier, Aydin Senkut, Dave McClure, Chris Sacca & Eric Paley (at Founder Collective) are leading the charge. Or when the economy turns downward and they all need financing extensions? That’s awesome.

Liquidity Event 308

Liquidity Event Silicon Valley Seed Stage Finance 308

Up and Running

DECEMBER 6, 2010

It’s about early-stage investors getting a return, not about entrepreneurs leaving the company. You could also call it a liquidity event. Founders need exit strategies for the investors, not for themselves. But that’s not what an exit strategy is, I answered. What exits is the money. Money exits.

Exit Strategy 71

Exit Strategy Liquidity Event Early Stage Entrepreneur 71

The Next Web

OCTOBER 7, 2013

They were referring to non-founder engineers, most commonly the first hire for technology businesses. is frequently granted ownership significantly less than that of the founders. However, at the very early stage, they are taking as much risk with their future as the founders. Engineer #1?

Engineer 129

Engineer Dilution Option Pool Vesting 129

Berkonomics

AUGUST 27, 2015

He has served as advisor to and member of numerous financial exchanges, and was the founder and CEO of Arthur Lipper Corporation and co-founder and Chairman of New York & Foreign Securities Corporation. Today he serves as Chairman of British Far East Holdings Ltd. The businesses frequently were the owner-manager’s only major asset.

Intellectual Property 48

Intellectual Property Balance Sheet Stock Options Valuation 48

Hunter Walker

SEPTEMBER 29, 2022

So for the most part a venture investor holds their equity until the company exits via an acquisition, IPO, or some sort of other liquidity event (management buyout, whatever). That is, we should be buyers or sellers as a concentrated early stage fund, not trying to say “well, if we were a growth fund what would be do.”.

Venture Capital 122

Venture Capital Cap Table LP Equity 122

Berkonomics

APRIL 3, 2014

We’ve spoken of financing a young company through friends and family, known as “inside angels.” There are three classes of equity investors for early stage businesses that we have not yet considered. All angel groups will want to see the founders in person at sometime early in the process. Raising money'

Equity 92

Equity Finance Liquidity Event Angel Groups 92

dondodge.typepad.com

JANUARY 15, 2011

Entrepreneurs face some pretty tough questions at a very early stage. How much equity should I grant to early employees? It isnt always possible to have a competitive bidding situation at each financing round so here are some guidelines for funding sources and percentages. Should I take Angel or VC money? 5% Managers -.25%

Equity 40

Equity Employee Dilution Valuation 40

Up and Running

SEPTEMBER 20, 2021

It permits you to perfectly present the history of your company and holdings in the event of an audit. Founders can apply the information to instantly ascertain what percentage of the startup they have to propose a new investor. For any (early stage) startup, the team is the most critical asset. Convertible notes.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. By January of 2016, that number had ballooned to 229.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Seeing Both Sides

SEPTEMBER 15, 2015

The founders have started companies before. More recently, Israeli founders are themselves moving to the U.S. So how early should the founders pack their bags and ship out to the U.S.? Our analysis and interviews suggest the prevailing wisdom has shifted toward a simple answer: as early as possible.

Cofounder 20

Cofounder Technical Review United States 20

www.vccafe.com

MARCH 11, 2013

VC Cafe covers early stage Israeli and European tech & mobile startups. ” Hackernews list of “Tools of the Trade” for startups - includes over 150 SaaS tools used by startups, and over 150 comments with interesting insights from founders. Event platforms. easy business finance software.

Software Review 53

Software Review Technical Review Startup 53