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Why Uber is The Revenge of the Founders

Steve Blank

The founders along with all the other employees would vest their stock over 4 years (earning 1/48 a month). They had to hang around at least a year to get the first quarter of their stock (this was called the “cliff”). Founders are taking control of the board by making the common stock the founders own more powerful.

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Investor Nomenclature and the Venture Spiral

K9 Ventures

In my view the terminology being used for early stage investors by the press and the media is not as clear as it should be. Common Stock. Convertible Note or Preferred Stock. Convertible Note or Preferred Stock. Preferred Stock. Preferred Stock. Preferred Stock / Warrants.

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Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

This is nothing new; long favored by family-controlled media empires such as Rupert Murdoch’s News Corporation , among Internet firms alone, Google took a dual-class approach when going public in 2004. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

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The Ultimate Guide to Starting a Software Company

Up and Running

Delaware law gives preferred stock investors of a corporation certain voting rights and control over the corporation. The great thing about raising money after they’d already started was that they’d had time to validate their idea and start building a team of good employees. Delaware permits a single-member board of directors.

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Investors Beware: Today’s $100M+ Late-stage Private Rounds Are Very Different from an IPO

abovethecrowd.com

In a February 6th article in Business Insider , Allyson Shontell discovered that a mere four months after adding $150 million to a total of $330 million in invested capital, the founder and CEO disclosed to its employees that “we have spent $200 million and we have not proven out our business model.” We are in a risk bubble.

IPO 40
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Startup Resources

www.vccafe.com

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