Both Sides of the Table

MAY 9, 2018

This is a very common scenario when entrepreneurs pitch VCs and frankly is a very common scenario when VCs try to raise money from LPs. I then had to review a nefarious IP lawsuit filed against another company and help the CEO figure out whether we should just pay it or join forces with the other companies named and fight it.

Software Review 381

Software Review Churn Rate Due Diligence New York 381

View from Seed

DECEMBER 4, 2014

Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. In addition to being a co-founder of NextView Ventures, Lee was an early member of PayPal and a founding team member at LinkedIn, so he speaks as both a former entrepreneur and a VC.

Equity 315

Equity Founder Sweat Equity Cofounder 315

Agile VC

DECEMBER 4, 2014

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. As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals.

Cofounder 255

Cofounder Equity Founder Sweat Equity 255

Both Sides of the Table

JUNE 5, 2015

Over the years I’ve written extensively about the downsides of convertible notes for startups such as here , here and here. How much is in the option pool? If you have 8 senior managers in place and I don’t think you’ll need as many people I might accept an option pool of 8% unallocated.

Pre-Money Valuation 150

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

Agile VC

DECEMBER 4, 2014

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. As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react. times at six years.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

AUGUST 17, 2009

I often talk with entrepreneurs who are kicking around their next idea. To the best of my knowledge US law allows you to work on your own resources and in your own hours and let you personally own your IP. But these people seldom make retirement money from the stock options on these companies. Make sure you own your IP.

Founder Vesting 365

Founder Vesting Intellectual Property Stock Options IP 365