VC Cafe

SEPTEMBER 26, 2022

The past year was a wild ride for startups and founders, giving a whole new meaning to the ”rollercoaster” aspect of being an entrepreneur. Embrace a frugal mindset: cashflow is king. “Before product-market fit… just care about speed of iteration according to your customer feedback. Bill Gates , founder of Microsoft.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

Both Sides of the Table

DECEMBER 11, 2022

How might our next phase of the journey seem brighter, even with more uncertain days for startups and capital markets? And then in the late 90’s money crept in, swept in to town by public markets, instant wealth and an absurd sky-rocketing of valuations based on no reasonable metrics. What happened? People were building.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Startup Professionals Musings

NOVEMBER 8, 2010

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Another common “failure to start” situation I see is one where the “idea person” insists that the idea is 90% of the value (and 90% of the equity). Pre-existing intellectual property.

Equity 228

Equity Intellectual Property Cofounder CTO Hire 228

VC Cafe

FEBRUARY 27, 2024

A founder asked me what makes a $2M round “pre-seed”? Seed is about showing initial product market fit. In smaller funds, ticket sizes tend to be lower, so pre-seed is the only stage where micro funds are able to secure their minimum equity targets. especially if the startup already has a product and revenue?

Valuation 186

Valuation Software Review Generative AI Technical Review 186

David Teten

APRIL 1, 2021

I’ve recently advised a number of emerging private equity and VC funds who are wrestling with the question: What are the highest impact steps they can take to support their portfolio companies? . Almost every private equity and venture capital investor now advertises that they have a platform to support their portfolio companies.

Private Equity 78

Private Equity Venture Capital Portfolio Equity 78

SoCal CTO

JANUARY 18, 2011

I have been working full time with two founders for about 10 months on full time basis. During that time one of the founders had mentioned that for the initial agreed time (3 months, equivalent dollars could be translated to 2% of equity but no agreement was reached at that time). Likely this greatly affects cash vs. equity.

CTO 167

CTO CTO Hire Equity Vesting 167

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC?

Equity 78

Equity Revenue Cofounder Colorado 78

SoCal CTO

JANUARY 18, 2011

I have been working full time with two founders for about 10 months on full time basis. During that time one of the founders had mentioned that for the initial agreed time (3 months, equivalent dollars could be translated to 2% of equity but no agreement was reached at that time). Likely this greatly affects cash vs. equity.

CTO 150

CTO CTO Hire Equity Vesting 150

Startup Professionals Musings

OCTOBER 16, 2022

They couldn’t possibly understand the new social media culture, new technologies, or have the determination to beat their younger counterparts in the market. Pew says the Boomer demographic is the largest mainstream pool of experienced talent in the market today, and will be for the foreseeable future. Member of the Advisory Board.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

Startup Professionals Musings

MAY 14, 2023

Of course, their answer is that the second intends to get to market faster, but every engine has limits regardless the fuel applied. Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Both Sides of the Table

JANUARY 4, 2014

Nowhere is the politics more difficult than with co-founders, which is why for years I’ve spoken publicly about “ the co-founder mythology.” ” Of course we all go into businesses expecting to be aligned with our co-founders but over time life changes. Equity for the future?

Founder 340

Founder Sacramento Cofounder Technical Review 340

ConversionXL

JANUARY 18, 2022

In 2018, after two short years and $3 million raised in startup funds, recruitment AI company Ansaro shut down due to bad market fit. Muun found a market need but failed to compete with bigger names that provided customers with authoritative content and resources. Both companies suffered from a fatal lack of marketing.

Marketing 110

Marketing Product Audience Equity 110

Startup Professionals Musings

NOVEMBER 4, 2022

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. A sales fanatic on the founder team helps to contain that risk. The combination of technical insight, founder authority, and sales experience is a hard-to-beat advantage in a competitive market. The industry veteran.

Technical Cofounder 309

Technical Cofounder Cofounder Advisory Board Startup 309

Startup Professionals Musings

FEBRUARY 8, 2013

A while back I talked about how and where to find a co-founder in “ For a Startup, Two Heads are Always Better Than One.” In this context, I’m broadening the definition of partner from co-founder to “business partner.” In this context, I’m broadening the definition of partner from co-founder to “business partner.”

Partner 258

Partner Software Review CTO Hire Equity 258

David Teten

MAY 20, 2016

Our meetup is focused on how to use technology to enhance investing in private markets, including VC, growth, buyout, and distressed. Membership in the Meetup is open exclusively to: Institutional investors in private markets (VC, growth, buyout, distressed, etc.) I asked him to write a guest post: Hi!

Private Equity 113

Private Equity Equity Cap Table Venture Capital 113

Startup Professionals Musings

OCTOBER 6, 2023

The Founder needs to remember that meetings up to this point have been primarily off-site, with staged demos, and managed personally by the CEO or a small team. A smart investor will take an independent final reading in the market on barriers to entry, active competition, demographics, and price sensitivity.

Technical Review 296

Technical Review Due Diligence Term Sheet Bankruptcy 296

Startup Professionals Musings

FEBRUARY 8, 2021

In fact, the cost may be minimal, if you do your networking and build a relationship with an experienced business executive or two in your domain who are willing to share and give back for a nominal retainer, perhaps one percent of your new startup equity. The cost of a co-founder is usually fifty percent of your equity.

Advisory Board 356

Advisory Board Bandwidth Cofounder Technical Review 356

Startup Professionals Musings

MAY 25, 2022

Business partners can be co-founders in a startup, multiple owners of an existing business, or a joint venture. You need to do the due diligence to make that decision before you sign away your equity. You need to do the due diligence to make that decision before you sign away your equity.

Technical Review 313

Technical Review Due Diligence Partner Cofounder 313

David Teten

JANUARY 23, 2021

For ideas, see How Executives Can Work from Home with Private Equity and Venture Capital Funds. Yohei Nakajima, Founder of Untapped.vc , said, “Before pitching LPs and building my firm, I talked with over 50 people I knew to get feedback.” . The less widely marketed your fund is, the more valuable it is perceived to be.

Private Equity 78

Private Equity Venture Capital Technical Review Software Review 78

View from Seed

APRIL 6, 2021

You have 4-6 years of professional experience as a technology operator, founder, or investor in New York. You have a deep desire to learn the venture capital business and are ready to hustle to meet the next great founder. Who Are We Looking For. You are a native of NYC tech with a strong network. You act as an “ invited guest.”.

Technical Review 317

Technical Review Software Review Seed Stage Cofounder 317

The Startup Magazine

SEPTEMBER 21, 2020

Here’s another from The Startup Magazine Founder Interview Series. Abraham serves his clients with both forward-looking business growth strategy and digital marketing through leadership applications partners. The post Founder Interview: Abraham Gin on Entrepreneurs and Leadership appeared first on The Startup Magazine.

Leadership 166

Leadership Founder Technical Review Entrepreneur 166

thinkspace.com

SEPTEMBER 7, 2012

Marketing Intern. How to Divide Equity to Startup Founders, Advisors, and Employees. The part that I’d like to zero in on is when you’ve got a high growth company what are some of the best practices out there to distribute equity to the founders, advisors, and employees? Equity for Founders.

Equity 62

Equity Employee Founder CTO Hire 62

Startup Professionals Musings

AUGUST 19, 2020

Of course, their answer is that the second intends to get to market faster, but every engine has limits regardless the fuel applied. Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Steve Blank

OCTOBER 23, 2023

In a business development role you’re out shaping the perception of your company in the market (networking), determining leads, and contacting leads. Strategy and Operations roles: These roles help make sure vision, resources (budgets and people), and the market opportunity are aligned.

Government 212

Government Advisory Board Salary Sales Cycle 212

The Startup Magazine

AUGUST 11, 2023

It is necessary to cover the early stages of product development, thorough market research, and other processes during the initial step. This could be a proportion of the company’s equity or investment; in other instances, it could be a portion of its later-stage profits. How does the funding for the seed stage work?

Seed Stage 125

Seed Stage Technical Review Early Stage Due Diligence 125

Startup Professionals Musings

MAY 8, 2022

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. The right time to jump is a function of favorable career, personal, and market circumstances. The co-founder relationship dilemma.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

Startup Professionals Musings

FEBRUARY 27, 2021

More and more entrepreneurs are hearing about the successful graduates and investors queued behind a few well-known startup incubators, including Y Combinator, TechStars, and the Founder Institute. They dream of appearing at the door, with their idea on the back of a napkin, and popping out a few months later with investor money to burn.

Incubator 366

Incubator Technical Review Due Diligence Venture Capital 366

View from Seed

JULY 6, 2020

You have 4-6 years of professional experience as a technology operator, founder, or investor in New York. You have a deep desire to learn the venture capital business and are ready to hustle to meet the next great founder. . Who Are We Looking For. You are a native of NYC tech with a strong network. You act as an “ invited guest.”.

Technical Review 257

Technical Review Software Review Hiring Seed Stage 257

Startup Professionals Musings

FEBRUARY 9, 2020

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. A sales fanatic on the founder team helps to contain that risk. The combination of technical insight, founder authority, and sales experience is a hard-to-beat advantage in a competitive market. The industry veteran.

Technical Cofounder 308

Technical Cofounder Cofounder Advisory Board Stock Options 308

Startup Professionals Musings

JANUARY 18, 2020

They couldn’t possibly understand the new social media culture, new technologies, or have the determination to beat their younger counterparts in the market. Pew says the Boomer demographic is the largest mainstream pool of experienced talent in the market today, and will be for the foreseeable future. Member of the Advisory Board.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

Startup Professionals Musings

NOVEMBER 26, 2022

Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt. Every startup I know has had to pivot at least once, no matter how certain they were of their solution and market. Many times friends and family have been broken by failed investments.

Cost 267

Cost Bootstrapping Advisory Board Startup 267

The Startup Magazine

FEBRUARY 21, 2024

Arif Bhalwani is the co-founder and CEO of Third Eye Capital (TEC) in Toronto, Canada. The increasing importance of private credit in today’s market cannot be overstated. What advice would you give to businesses that are struggling to survive amidst the tightening of credit markets in Canada?

Technical Review 133

Technical Review Due Diligence Bankruptcy Intellectual Property 133

The Startup Magazine

SEPTEMBER 15, 2020

Venture capital is a type of private equity. This is especially true if the company lacks access to capital markets or bank loans. The downside to venture capital is that the company or individual doing investing generally get equity in the company. Regular private equity investors fund larger and more established companies.

Venture Capital 144

Venture Capital Technical Review Software Review Security 144

David Teten

AUGUST 20, 2019

Many are reporting that they’re seeing a more diverse pool of applicants than traditional equity VCs… even though virtually none have a particular focus on women or underrepresented founders. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital.

Revenue 60

Revenue Cofounder Founder Venture Capital 60

David Teten

SEPTEMBER 23, 2017

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. The extreme example of this are algorithmic investors in the public markets, who design algorithms which trade on the designer’s behalf, as opposed to making trading decisions directly.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

ReadWriteStart

JUNE 1, 2020

The next reason is to establish a competitive advantage over your competition and quickly acquire a substantial market share. Let’s take an example – In the case of an internet or app business, the user traction and market penetration is a must. Forms of funding. ? Equity investment. Establish a competitive advantage.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

JANUARY 24, 2021

The Founder needs to remember that meetings up to this point have been primarily off-site, with staged demos, and managed personally by the CEO or a small team. A smart investor will take an independent final reading in the market on barriers to entry, active competition, demographics, and price sensitivity.

Technical Review 379

Technical Review Due Diligence Term Sheet Bankruptcy 379