Both Sides of the Table

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What Do Boards Actually Do?

Both Sides of the Table

As a starting point the board is intended to have legal and financial responsibilities to a few key constituencies: shareholders, debt holders, creditors, employees, government and major parties with whom the business operates. ICOs certainly have a place in startup financing.

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The Changing Venture Landscape

Both Sides of the Table

And there is so much money around being thrown at so many entrepreneurs that many firms don’t even care about board seats, governance rights or heaven forbid doing work with the company because that would eat into the VCs time needed to chase 5 more deals. A seed round these days is $3–5 million or more!

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What You Can Learn from a Scorpion

Both Sides of the Table

If you hire somebody with 3 kids and who doesn’t have a lot of savings you’re naturally going to have somebody who cares more about cash than equity even though you REALLY WANT everybody in your company to have the same motivations as you. Even big countries must be mindful of Hobbesian forces.

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Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

The buyer is shopping for equity in startups and the seller is looking for cash in exchange for equity and shared governing control of his or her company. So WTF am I supposed to do when an investor asks for access to my data room if I don’t have one? For starters you have to realize that fund-raising is a sales process.

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The Co-Founder Mythology

Both Sides of the Table

Give them a large sum of equity. It is not uncommon to see startup founders walk before raising capital and take large pieces of equity with no vesting. Make sure you have a very clearly established governance structure. Hire your co-founder. Vested over 4 years. If you ever fall out of love you have a pre-nuptial agreement.

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Why I Don’t Like Board Observers

Both Sides of the Table

It’s just that many companies waste equity on advisory boards, pick the wrong advisers or set up advisory boards with the wrong expectations. The first is a “board member.&# This is a person who had legal, corporate governance rights to vote on initiatives that require board approval.

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DataSift Announces Mega-Round. Apple Buys Topsy for $200 Million. Here’s What You Need to Know

Both Sides of the Table

Put simply, the amount of public, real-time information that is now being created by hundreds of millions of users and soon billions of objects will change the way every major business, organization or government must operate. How can governments not track hooligans, terrorists or criminals who give off public information.

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