David Teten

JANUARY 19, 2021

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. On average, founders own just 43% of equity by Series B , declining thereafter. Flexible VC offers you this.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

VC Cafe

SEPTEMBER 10, 2021

Avoiding saying no is a mistake I made as an entrepreneur and one I have seen many other founders make frequently. Toya represents a new type of digital ,branded, social experiences that are already creating brand equity. Thinking ahead 5-10 yearsm we believe that Toya will be one of the leading IP owners of the virtual world.

Technical Review 178

Technical Review South Korea Due Diligence IP 178

Agile VC

DECEMBER 4, 2014

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

The Startup Magazine

MARCH 10, 2018

You need lawyers to help you with incorporation and IP creation. Thus, as with many other expensive aspects of starting a business, many entrepreneurs like you are turning to software. If your IP is unique and at the heart of your startup, you definitely need legal help to protect your business. Intellectual property creation.

Software Review 70

Software Review Technical Review Artificial Inteligence Software 70

Gust

DECEMBER 1, 2011

When meeting with early stage entrepreneurs for the first time, after reviewing a demo or hearing their pitch, I often ask them to articulate what they’re most focused on building. I don’t fault entrepreneurs for relegating startup legal work to the bottom of their daily triage list; founders are spread incredibly thin.

IP 114

IP Intellectual Property Equity Liquidity Event 114

Both Sides of the Table

SEPTEMBER 25, 2010

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. Not that they’re “such a bad idea&# but more that there are inherent problems for entrepreneurs in the process of raising angel money that need to be addressed.

Finance 286

Finance Term Sheet Technical Review Warrant 286

NZ Entrepreneur

SEPTEMBER 29, 2021

Remuneration will reflect the stage of the startup but it’s generally at a rate of about $500-1000 a meeting or directors might be paid in equity at about 0.5-0.75% This equity will vest over 2-3 years. In deep tech companies value creation milestones are more likely to be tagged to validating the technology and IP creation.

Technical Review 88

Technical Review Software Review New Zealand Due Diligence 88

YoungUpstarts

OCTOBER 14, 2011

But those same words could easily be applied to the Singapore-based technology entrepreneurs present at Techventure 2011. The hope is to get even more experienced investors and entrepreneurs to invest in local startups and provide them with systematic management guidance and mentorship. Singapore Innovation. Ongoing Challenges.

Singapore 198

Singapore Technical Review Technology Incubator 198

Both Sides of the Table

JANUARY 21, 2010

I recently read a post over on VentureHacks titled, “ Top Ten Reasons Entrepreneurs Hate Lawyers &# written by Scott Walker (who blogs on legal issues for entrepreneurs ). You never got around to agreeing exact equity splits but you had many conversations about it. Much of this is unfounded – some is not.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Startup Professionals Musings

NOVEMBER 9, 2010

Although their book is written for businesses of all sizes, I believe the principles apply especially to startups as follows: To increase return on equity invested. Intellectual property (IP). Tags: strategy entrepreneur startups business. ” They emphasize that before the “What” should come the “Why?” Scalability.

Intellectual Property 231

Intellectual Property Startup IP Finance 231

Startup Professionals Musings

APRIL 30, 2012

Although their book is written for businesses of all sizes, I believe the principles apply especially to startups as follows: Increase return on equity invested. Intellectual property (IP). ” They emphasize that before the “What” should come the “Why?” It is to earn more bottom-line profit-ability than a random walk. Scalability.

Intellectual Property 248

Intellectual Property Startup IP Finance 248

Scott Edward Walker

SEPTEMBER 28, 2011

Introduction This post was originally part of the “ Ask the Attorney ” series I am writing for VentureBeat (one of my favorite websites for entrepreneurs). And if the departing founder has a huge chunk of equity, it is unlikely that the company will find many sophisticated angels or VC’s interested in investing. IP Ownership.

Vesting 89

Vesting Software Review IP Intellectual Property 89

Both Sides of the Table

FEBRUARY 23, 2015

For some aspiring to be tech entrepreneurs, I often suggest a two-step process, as I argued in this post that “ The First Startup Founder You Need to Invest in Is You.” There is often money to be made in finding places with under-valued IP. We looked at the IP and realized it was highly differentiated / hard to replicate.

Technical Review 150

Technical Review Liquidation Preference Silicon Valley IP 150

Both Sides of the Table

OCTOBER 17, 2019

The advantage is that in many of our best deals we now have $50+ million invested so we can really support entrepreneurs as their businesses scale. At Upfront when we know we have a winning hand we prefer to put more capital to work, which both helps the entrepreneurs succeed and drives more aggregate financial returns for our LPs.

IP 223

IP Intellectual Property IRR Cofounder 223

Both Sides of the Table

SEPTEMBER 28, 2014

In a world where the economy only heads in one direction (read: 2009-2014) most investors & entrepreneurs forget to pay attention to gross burn. So money spent should add equity value or create IP that eventually will.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

The Startup Magazine

JUNE 26, 2020

Incorporating your business is needed in order to establish a legal separation between the individual entrepreneur(s) and the business itself to prevent personal liability for the business’s debts. Some of these potential issues can include: profit sharing, equity splits, decision-making, and division of responsibilities.

Intellectual Property 149

Intellectual Property Startup SEC Stock Options 149

Startup Professionals Musings

FEBRUARY 28, 2010

I always love to get questions from my readers, and I answer them all, but sometimes I feel like the “Dear Abby’ for entrepreneurs. You will find that investors don’t often invest in a services business, since there are no assets for equity, and banks don’t lend money to someone with no credit and a mortgage problem. Marty Zwilling.

Sweat Equity 188

Sweat Equity Entrepreneur Equity CPA 188

www.greenhornconnect.com

OCTOBER 3, 2011

Share with 1 click: All entrepreneurs face the question: “when should I form a company?” 1) You and your partners have developed IP critical to your business. Intellectual property is the most valuable asset most startups possess, so it is crucial that the startup, not the founders, own IP developed for the business.

IP 40

IP Intellectual Property Limited Liability Company Boston 40

This is going to be BIG.

FEBRUARY 2, 2012

On top of that, most of a school's major donors are likely to be entrepreneurs in some way. You just don't wind up with $25 million to name a dorm unless you've gotten equity upside in something. You undoubtedly have alumni entrepreneurs who are motivated to come back and assist you. Kick the students out.

Incubator 118

Incubator .Net Cofounder Software Developers 118

The Startup Magazine

JULY 25, 2019

About 550,000 people start their venture as an entrepreneur every month. If founders and investors come together at the start, then you need the assistance of a lawyer to sort out the equity rights. . Beyond this, many startups need to protect the IP that is the core of their business. It helps to be prepared. Hiring Employees

Intellectual Property 81

Intellectual Property Hiring IP Startup 81

Version One Ventures

OCTOBER 15, 2020

Given these key advantages, I believe that Lightning (or something like it) will ultimately eat all of the USD payment networks and create the foundation for MoIP (Money over IP). . If this post resonates with you, especially if you’re an entrepreneur or developer building something with Lightning, then please reach out !

Networking 168

Networking Global OTC Security 168

Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. Your A round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Both Sides of the Table

APRIL 25, 2011

A great recent example of this was a successful group of entrepreneurs who had created a company that will do $10-12 million in revenue at their system integration business (read: services business) in 2011 after having done $5 million or so in 2010 and $2-3 million in 2009. You own the IP you create.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

YoungUpstarts

APRIL 18, 2019

Many aspiring entrepreneurs love to picture the finish line, but rarely account for the daily chaos they’ll face along the way. Because the tech world is a lot like Hollywood — it’s all about the stars, the elite few you read about in The Wall Street Journal and Entrepreneur. The same is true for tech startups.

Cofounder 127

Cofounder Startup Private Equity Equity 127

www.seriesseed.com

DECEMBER 9, 2012

We went with equity because ivestors would prefer to get equity for the following reasons: 1. One of the reasons notes have become so popular is that the equity documents were too expensive. I think they will be a big help (to entrepreneurs and attorneys alike). Posted by: toby | 03/01/2010 at 09:52 PM.

Finance 40

Finance Term Sheet Vesting LLC 40

infochachkie.com

SEPTEMBER 24, 2011

Hands-on startup advice for emerging entrepreneurs. Instead of hearing from your long lost third-cousin, you will be inundated with an avalanche of ‘congratulatory’ emails, calls and letters from people who want to relieve you of the burden of your hard-earned equity round. infoChachkie. Thanks for visiting!

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

Austin Startup

AUGUST 20, 2017

They’re looking to be paid properly in the context of the overall salary structure, including cash, benefits, and equity, and to be paid commensurate with performance. Keep a close eye on your competitors but also on your peer entrepreneurs in your town; they provide the context relevant to you.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

ReadWriteStart

NOVEMBER 15, 2010

The law firm Goodwin Procter has launched a new resource for entrepreneurs that will help them navigate some of the legal and organizational challenges that startups face. The site also guides entrepreneurs through the document creation process, outlining some of the regulatory and administrative issues that startups need to address.

Founder 117

Founder Common Stock IP Startup 117

mashable.com

OCTOBER 16, 2010

Not only that, but the growing battle between venture capital firms and “super angels&# presents an amazing opportunity for entrepreneurs trying to build the next big thing. The YCombinator founder believes this means great things for entrepreneurs. This all very fascinating, what a time to be an entrepreneur!

Angel Investor 84

Angel Investor Venture Capital Social Media Technical Review 84

Both Sides of the Table

JUNE 5, 2015

” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. Of course investors care about controls (board, protective provisions, IP assignments, non-solicitation) but these are all pretty standard. Those are the big three. Size of my check.

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

mashable.com

OCTOBER 16, 2010

Not only that, but the growing battle between venture capital firms and “super angels&# presents an amazing opportunity for entrepreneurs trying to build the next big thing. The YCombinator founder believes this means great things for entrepreneurs. This all very fascinating, what a time to be an entrepreneur!

Angel Investor 83

Angel Investor Venture Capital Social Media Technical Review 83

VC Cafe

SEPTEMBER 26, 2010

A fter years of talking with many of you in the Israeli startup industry, investors and entrepreneurs alike, I was invited to present some tips for entrepreneurs at the Launch48 conference in London this weekend. It’s nice to have protected IP, but that will mostly matter later on in the event of an acquisition.

Elevator Pitch 102

Elevator Pitch Incubator Technical Review Startup 102

Both Sides of the Table

JULY 10, 2010

For entrepreneurs who want to learn about how to work with investment banks, how to position yourself to be acquired and what the IPO markets look like this is the episode to watch. They have relationships that are hard for entrepreneurs to build. Shame they didn’t like his suggested name for the company: DreamWorks SKG-MM.

IPO 242

IPO Venture Capital Private Placement Cofounder 242

Feld Thoughts

JULY 31, 2013

As Boulder continues to gain visibility as a great place to create companies, I’ve decided to highlight some of the entrepreneurs – and their companies – who have contributed to Boulder in significant ways. By the time we sold to Level 3, our total proceeds to equity owners and management were $225M. We raised $2.7B

Bandwidth 147

Bandwidth Colorado Startup IRR 147

Gust

DECEMBER 8, 2011

I urge all entrepreneurs to consult and develop a good working relationship with a qualified startup lawyer. Stepping off the soapbox, let’s examine the highest level “To Do” list for a new startup: Formation, Governance and Equity. Caveat entrepreneur ! Pick a name for the new legal entity (e.g., Newco, Inc.”) Newco, Inc.”)

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Gust

SEPTEMBER 17, 2014

Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. It’s like we need a finance 101 course for entrepreneurs.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Scott Edward Walker

OCTOBER 27, 2015

Button-down IP ownership and assignment issues (see post here ). Split the equity based on prior contributions and expectations going forward, not necessarily equally (see post here ). v=N1A44ShZfWo. Incorporate in Delaware and qualify the company to do business in the state in which its principal office is located (see #2 here ).

Intellectual Property 40

Intellectual Property Accredited Investor Vesting Delaware 40