Both Sides of the Table

MAY 23, 2012

Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. For starters we saw a huge influx of inexperienced managers enter the VC industry proving clearly that being a VC is not a purely quantitative job. The Exit Problem.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Startup Professionals Musings

MARCH 9, 2018

Cohen and John Kador, in their classic book “ What Every Angel Investor Wants You to Know ,” includes these great points of practical advice on this subject: Manage expectations before the fact. That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

OCTOBER 10, 2014

Cohen and John Kador, in their recent book “ What Every Angel Investor Wants You to Know ,” includes these best points of practical advice I’ve seen recently on this subject: Manage expectations before the fact. That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations.

Founder 254

Founder Cram Down Angel Investor Equity 254

Hunter Walker

SEPTEMBER 29, 2022

Starting a venture capital blog post with 1970s country music lyrics is pretty uncommon, but so is writing about when and why an investor might choose to sell equity before the company exits. Below I’ll share some of the principles we use at Homebrew , knowing that there’s not really a single ‘right’ answer for a fund manager.

Venture Capital 122

Venture Capital Cap Table LP Equity 122

The Startup Magazine

FEBRUARY 6, 2020

trillion, it is by far the largest of its sort in the world and financed projects that in other settings may not have passed investment criteria screens. [3]. The buyers (or lessees) in these transactions are pension funds, insurance companies, or private equity representing other institutions. municipal bond market.

Private Equity 129

Private Equity New York City Chicago Investment Bankers 129

David Teten

NOVEMBER 15, 2013

Since I became an institutional investor, my #1 learning is: this is a highly unusual and somewhat baffling industry. Asset management also shows the traditional earmarks of an industry ripe for disruption — most obviously, unhappy customers and extremely profitable incumbents.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Startup Professionals Musings

APRIL 17, 2013

Cohen and John Kador, in their new book “ What Every Angel Investor Wants You to Know ,” includes these best points of practical advice I’ve seen recently on this subject: Manage expectations before the fact. That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations.

Cram Down 230

Cram Down Angel Investor Equity Dividend 230

Startup Professionals Musings

NOVEMBER 11, 2015

Cohen and John Kador, in their classic book “ What Every Angel Investor Wants You to Know ,” includes these best points of practical advice I’ve seen recently on this subject: Manage expectations before the fact. That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

Startup Company Lawyer

MARCH 12, 2009

Any company that raises venture financing will need to be a C corp in order to issue preferred stock. If founders want the benefit of flow through tax treatment with respect to losses prior to an outside financing, an S corp election may make sense as long as there are no entity or non-U.S. citizen/resident stockholders.

LLC 61

LLC Stock Options Preferred Stock Stock 61

VC Cafe

FEBRUARY 6, 2011

My key takeaways from talking to roughly 40 institutional investors in the valley about investing to an European startup are: Traction cures all ills. Not literally, but one big surprise to me was that in the 40 odd investor meetings I had, I managed to open the deck probably only 5-10 times. Simplify, practice.

Silicon Valley 104

Silicon Valley Startup Seed Stage Delaware 104

Both Sides of the Table

MAY 23, 2010

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. a loan) that is later converted to equity at the time of the next financing. It starts as a debt instrument (e.g.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Women Entrepreneurs Can

JUNE 11, 2021

Stock markets are a common platform where individual and institutional investors come together to buy and sell shares. The key factors to be kept in mind during Portfolio investment are that it is a passive investment compared to hands-on management. For the people, it becomes a mode to earn income. Criteria for Buying Stocks.

Stock 52

Stock Securities and Exchange Commission Portfolio Dividend 52

Growthink Blog

MAY 10, 2012

Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first. No right or wrong answer here, but if this is your vision then it's important to consider when negotiating deal terms on earlier stage financing rounds. Seed Funding 3.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

David Teten

AUGUST 21, 2019

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. A company with that mindset is dramatically less risky, because it’s not dependent on the financing markets for continued viability.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

David Teten

JANUARY 8, 2013

PEHub just posted this guest article: Can professional investors use social media? Historically, institutional investors kept their investing strategy and their activities very discreet. Investors can tap this network for executive talent, followon financings, and eventually an exit.

Private Equity 114

Private Equity Social Media Equity Media 114

Reid Hoffman

OCTOBER 5, 2020

One of the hottest topics in the technology and finance world right now is an old idea that has suddenly found new life, the special purpose acquisition company or “SPAC.” Most IPOs are managed by a handful of investment banks who run a roadshow to sell stock to risk-averse institutional investors.

Venture Capital 28

Venture Capital IPO Cofounder Institutional Investors 28

Both Sides of the Table

OCTOBER 1, 2009

I can tell you first hand than bankers are out making road shows to gin up interest in VCs and institutional investors. You can’t get paid for sitting on the sidelines – I always tell people that when recessions start managers in large companies get rewarded for cutting costs. There is a lot of pent-up demand.

IPO 255

IPO Investment Bankers Venture Capital Marketing 255