Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). I suspect that this seems reasonable if there is basically no due diligence due to the early stage of the companies. (By Legal fees.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Berkonomics

JULY 23, 2020

Sometimes the end game or sale of the company is not a happy event. Especially when outside investors, venture capitalists, or angels, have put in substantial money and the sales price is less than the value of their investment. There are some questions a distressed sale brings to mind. How about outside investors?

Delaware 62

Delaware Liquidation Preference Preferred Stock Early Stage 62

Berkonomics

FEBRUARY 23, 2023

He concluded that the sweet spot for valuation was in the $20–30 million sales price range, and that many, many times more deals were completed in that range than above $100 million in valuation at exit. What about those unicorns?

Dilution 62

Dilution Valuation Early Stage Equity 62

Berkonomics

AUGUST 29, 2013

Sometimes the end game or sale of the company is not a happy event. Especially when outside investors, venture capitalists, or angels, have put in substantial money and the sales price is less than the value of their investment. There are a number of questions a distressed sale brings to mind.

Delaware 66

Delaware Liquidation Preference Liquidity Event Preferred Stock 66

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. Individual super angel investors.

Equity 62

Equity Finance Liquidity Event Angel Groups 62

Berkonomics

DECEMBER 30, 2021

In my life as an early-stage investor, I’ve been closely involved with so many businesses, there were bound to be numerous stories of actual and near failures, hopefully from which to learn lessons for all of us as we go forward. I volunteered to do this several times when there was no-one else, even the founders, to do this.

Bankruptcy 62

Bankruptcy Early Stage Matching Software 62

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. There is a lot to say about retaining control.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

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. What happens to the outstanding convertible notes? Most would agree this is not a fair outcome.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Berkonomics

JUNE 2, 2010

But how about awarding stock options to all employees? . Tech companies, particularly early stage and startups, still award options aggressively. Whether out of guilt, thankfulness or simply to be fair, you should plan in advance for sharing the profits from a corporate sale with those who helped you to the finish line.

Liquidity Event 86

Liquidity Event Stock Options IPO Stock 86

Gust

SEPTEMBER 5, 2012

” Yet in my little corner of Wonksville, Founder Institute CEO Adeo Ressi and Yoichiro “Yokum” Taku , a partner at my “alma mater” law firm Wilson Sonsini Goodrich & Rosati , created quite a stir this past week by announcing a new set of template deal documents dubbed “ Convertible Equity.”

Finance 134

Finance Convertible Security Equity Seed Stage 134

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

FEBRUARY 9, 2017

He concluded that the sweet spot for valuation was in the $20–30 million sales price range, and that many, many times more deals were completed in that range than above $100 million in valuation at exit.

Dilution 48

Dilution Valuation Early Stage Naming 48

Berkonomics

SEPTEMBER 23, 2011

But I cannot recall ever attending a closing dinner for a sale in which we returned only a portion of the investor group’s money. In fact, I don’t recall any formal post-sale meeting at all; even to digest the lessons learned from the entire experience, a missed opportunity for all.

Investment Bankers 63

Investment Bankers Initial Public Offering Early Stage Cofounder 63

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

Steve Blank

JUNE 11, 2013

These are great, but they are not repeatable by a sales organization. The test is: If you add one more sales person or spend more marketing dollars, does your sales revenue go up by more than your expenses? • Business model : A business model answers the basic questions about your entire business: Who are the customers?

Venture Capital 333

Venture Capital IRR Liquidity Event Business Model 333

Steve Blank

JUNE 11, 2013

These are great, but they are not repeatable by a sales organization. The test is: If you add one more sales person or spend more marketing dollars, does your sales revenue go up by more than your expenses? • Business model : A business model answers the basic questions about your entire business: Who are the customers?

Venture Capital 225

Venture Capital IRR Liquidity Event Business Model 225

Berkonomics

APRIL 3, 2014

There are three classes of equity investors for early stage businesses that we have not yet considered. If you are starting a virtual company with your employees working from home locations, as many startups do, it should be the location of the founder.

Equity 92

Equity Finance Liquidity Event Angel Groups 92

Seeing Both Sides

SEPTEMBER 15, 2015

We selected this benchmark because it reflects the phase in which companies have proven product viability, achieved initial product/market fit, and are now expanding sales and growing more complex operations. The founders have started companies before. More recently, Israeli founders are themselves moving to the U.S.

Cofounder 20

Cofounder Technical Review United States 20

www.quora.com

JANUARY 16, 2011

Find Questions, Topics and People Add Question Add Question Non-Technical Co-Founders Co-Founders Technical Co-founders Finding Co-Founders Startups & "How Important Are Ideas?" " Web Development Startups Solo Founders I am a creative guy with a startup idea. Rockstar v.

Developer 42

Developer Technical Review Cofounder Technical Cofounder 42

abovethecrowd.com

APRIL 20, 2016

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. We have already seen examples of founders and management obtaining liquidity in front of investors.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

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. turn customer feedback into sales and relationships.

Software Review 53

Software Review Technical Review Startup 53