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Startup Investor Makes a Deal: Engineers for Equity

mashable.com

“Once that product is built, you will probably have given away a lot of equity.&# In exchange for $150,000 to $300,000 of work, each startup has given Kayweb 14% to 40% equity. “Most of that money [from venture capitalists and angels] is used to build a product,&# explains Haig Kayserian, the CEO of Kayweb Angels.

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8 Key Startup Drivers Bring Pleasure As Well As Sweat

Startup Professionals Musings

Aspiring entrepreneurs ask me why their great idea hasn’t sold; they talk about it endlessly, and they expect others to do the development, finance, and marketing work for them. Those at the other extreme don’t look up from the grindstone long enough to notice whether all their work is producing sweat equity or just sweat.

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10 Steps To Second Stage Success For Your New Venture

Startup Professionals Musings

Very few startups are cash-rich enough to self-finance aggressive second-stage growth. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Delivering a superlative experience is the only way to get truly loyal clients, repeat business, and expansion through social networks.

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Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

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How to Hire for Sweat Equity…

www.drowningamerican.com

Next → How to Hire for Sweat Equity…. What We’re Doing: We’re currently setting the groundwork for an innovative educational web application that will eventually fuse with social networking. In the longer term we will compete with social networks and online advertising. Musings on Life and the American Dream.

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ProfessorVC: Is There Any Truth in "The Social Network"?

Professor VC

Is There Any Truth in "The Social Network"? Got around to seeing The Social Network this past weekend. I did a little searching around the web to try and find a truth vs. fiction comparison, but the closest I found was "The 10 Most Glaring Lies In The Social Network" on the Business Insider. ProfessorVC.

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This Week in VC Episode 6 with @Jason Calacanis: Best One Yet

Both Sides of the Table

Clearly a startup should consult its lawyer before filing or not filing.But the attorneys I relied on to write this piece told me that they’ve done lots of Section 4(2) deals in the past, and would recommend it to clients who had relatively simple financing agreements (not tranched-out, not too many investors, etc.) Short answer: no.

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