Employee Liquidation Preference Management Sales 
Steve Blank
MARCH 16, 2016
As the company goes from searching for a business model to growth , only then will they bring in a new “professional” management team to scale the company (along with a business development executive to search for an acquirer) or prepare for an IPO. Do you wait 7 years until you’ve built enough revenue for a billion-dollar sale?
Both Sides of the Table
FEBRUARY 23, 2015
So it could be that a sale would yield you seven figures and you could move on to your next role but the CEO wants to “go big or go home” and sometimes go home is the outcome. But if you’re the Director or Product or VP of Marketing – you don’t get to make that decision. the standard 4-6% for a hired-gun CEO).
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Gust
MAY 24, 2012
As a quick review, most startups begin life as corporations with a single class of equity securities, referred to as Common Stock , issued to founders, employees, and outside service providers. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.
Altgate
DECEMBER 18, 2008
@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Holiday Cards Year End Management Changes → The 3X Liquidation Preference Is Back! Let’s recap how expensive a 3x liquidation preference really is. Bookmark the permalink.
ithacaVC
FEBRUARY 23, 2011
A management carve out plan (MCOP) is a written obligation of the company that, in simple terms, provides that certain management members get a predetermined slice of proceeds when a company is sold. As the investors’ aggregate liquidation preference (ALP) increases typically the need for a MCOP also increases.
Both Sides of the Table
JANUARY 21, 2010
Forget to get around to setting up that Employee Stock Option Plan and want to be able to give the early guys their options at a low strike price? Consider it a sales & marketing expense for them. How to manage costs - One of the biggest frustrations that people have with lawyers are unexpected costs.
Tim Keane
JANUARY 12, 2010
Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values. For individual angels and others investing their own money, this may be more fluid than for someone with responsibility for a managed fund.
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