David Teten

MARCH 14, 2018

Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives. VC is a “get rich slow” business, because most VC Partners will not see a carry check for 5-10 years, after waiting for both liquidity events and for LPs to be paid first. This requires a real financial sacrifice.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Gust

NOVEMBER 4, 2011

In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does a priced equity round at a high pre-money valuation – “high” meaning above the cap, which is often a heavily negotiated term. (The of MySpace, Inc.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Startup Professionals Musings

JUNE 6, 2022

Today most startup investors still register with the SEC as “ accredited ” investors before they buy any startup equity in the U.S. These requirements for equity investing have been relaxed only a bit, with caveats, with relevant crowdfunding changes. Participate as a mentor in local startup incubators. Think long-term.

Liquidity Event 300

Liquidity Event Angel Investor SEC Accredited Investor 300

dondodge.typepad.com

JANUARY 15, 2011

Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees? How much equity should I give up? How much equity should I grant to early employees? No loss of equity, at least until they convert at Series A. How much equity should be given to employees?

Equity 40

Equity Employee Dilution Valuation 40

entrepreMusings

NOVEMBER 7, 2010

One was the Entrepreneur’s Foundation of Central Texas (EF) annual fundraising Texas Hold ‘Em poker night event. The Austin Technology Incubator , where I work, partners with the EF to handle our company’s equity donations to The University of Texas at Austin. She even gave me a stick of chewing gum.

Intellectual Property 43

Intellectual Property Incubator Liquidity Event Texas 43

Startup Professionals Musings

SEPTEMBER 6, 2019

Today most startup investors still register with the SEC as “ accredited ” investors before they buy any startup equity in the U.S. These requirements for equity investing have been relaxed only a bit, with caveats, with recent crowdfunding changes. Participate as a mentor in local startup incubators. Think long-term.

Liquidity Event 224

Liquidity Event SEC Entrepreneur Accredited Investor 224

Startup Professionals Musings

SEPTEMBER 16, 2017

Today most startup investors still register with the SEC as “ accredited ” investors before they buy any startup equity in the U.S. Typically these are used only for non-equity rewards or pre-orders, but the JOBS Act does allow equity investments with many restrictions. Participate as a mentor in local startup incubators.

Liquidity Event 184

Liquidity Event SEC Accredited Investor Angel Investor 184