Feld Thoughts

JUNE 10, 2022

But if you can do a clean financing at a lower price, I always think that’s a better option for everyone (founders, employees, and existing investors.). and a bunch of other things. Sometimes, given your syndicate configuration, you have no choice but to take structure in a new round.

Down Round 162

Down Round Ratchet Liquidation Preference Participating Preferred 162

Berkonomics

JANUARY 6, 2022

First, the marginal exit event: Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation.

Dividend 62

Dividend IRR Preferred Stock Participating Preferred 62

Both Sides of the Table

SEPTEMBER 2, 2009

If a company has reached a level of success, has been around for a few years and you believe the company has potential to break out into a much bigger company then you should let the founders take money off of the table. Founders however are asked to take low salaries and never really get back the time they worked for free.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 2 Stock Classes: Common and Preferred. 6 Founders / Restricted Stock. UPDATE: If youre a founder or near-founder, your equity terms are likely defined by the funding terms negotiated with the investors. Common stock holders can use the "total preference" to estimate their returns.

Equity 56

Equity Employee Vesting Preferred Stock 56

The Equity Kicker

JANUARY 25, 2016

We need a new disruptive capitalism that is designed for a much more mature internet market, one that can bring founders, investors, and employees together. I would summarise that as getting the fundamentals right – from great product, through unit economics to stakeholder alignment.

Venture Capital 60

Venture Capital Angel Investor Startup Participating Preferred 60

thinkspace.com

SEPTEMBER 7, 2012

How to Divide Equity to Startup Founders, Advisors, and Employees. The part that I’d like to zero in on is when you’ve got a high growth company what are some of the best practices out there to distribute equity to the founders, advisors, and employees? Equity for Founders. Equity for Employees.

Equity 62

Equity Employee Founder CTO Hire 62

Berkonomics

OCTOBER 1, 2015

Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation.

Dividend 48

Dividend Preferred Stock IRR Participating Preferred 48