Both Sides of the Table

MAY 2, 2015

Clearly the founders and senior executives of a company are the most valuable resources and their time should be maximized on the most valuable tasks. I watched Ophir Tanz achieve much in his early days at the Founder & CEO at GumGum, which has now become quite a large business. Legal threats from other IP holders?

Operations 150

Operations Metrics Early Stage Non-Compete 150

Both Sides of the Table

SEPTEMBER 25, 2010

Paul Graham’s assertion that “any startup founder can tell you the most common question they hear from investors is not about the founders or the product, but “who else is investing?&# When I’m in, I’m in. rings true to me. Investors who commit early deserve to have a lower price.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Both Sides of the Table

JANUARY 5, 2010

So we as VCs search for entrepreneurs/founders who have the whole package or as much of it as possible. If this idea was so big then why would they risk not being first to market, not building defensible IP for the sake of a few hundred thousand dollars extra in lock-up money at a big company? Few people have it.

Entrepreneur 293

Entrepreneur CTO Hire South America Salary 293

Both Sides of the Table

OCTOBER 11, 2011

I was at a dinner about a year ago with a few VCs and startup founders. I talked to one company who had build really differentiated IP and had great customer traction. The topic of FourSquare came up. None of the VCs were investors in FourSquare.

Startup 313

Startup Guerilla Silicon Valley Portfolio 313

Both Sides of the Table

DECEMBER 27, 2011

At this level, as a founder you feel SO CLOSE to profitability that many say, “I’m going to keep my costs really low this year to try and hit profitability. If you spent the 3 years perfecting some hugely differentiated technology IP that may also be different. I have had this discussion with many a first-time entrepreneur.

Startup 418

Startup Revenue Technical Review Flash 418

Both Sides of the Table

APRIL 25, 2011

The founders could reinvest this in growth (0% tax, focus on future equity growth) or take the profits of $12 million and divide amongst the founding partners. You own the IP you create. My advice wasn’t to shut down all product / IP initiatives but rather to be clear on their purpose and how to monetize them.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Both Sides of the Table

SEPTEMBER 18, 2014

I know how to structure around that to protect the founders from getting screwed on a multiple liquidation preference. But most VCs don’t bother so many convertible note founders get screwed and never know it until they sell their companies. I see that all the time. My colleague: Whoa. These are all real conversations.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Both Sides of the Table

JUNE 5, 2015

If you’re a solo founder and haven’t built out your team or engineers I’m likely to want 15+%. Of course investors care about controls (board, protective provisions, IP assignments, non-solicitation) but these are all pretty standard. million and the founder starts thinking, “yeah, $3.5

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

Both Sides of the Table

AUGUST 17, 2009

These periods of time can leave a founder very vulnerable in the future. To the best of my knowledge US law allows you to work on your own resources and in your own hours and let you personally own your IP. That’s the difference between a founder and a non-founder. The world is much safer for non-founders.

Founder Vesting 365

Founder Vesting Stock Options IP Intellectual Property 365

Both Sides of the Table

MAY 17, 2012

I’m ok with founders who have “father issues.” Well – he had this awesome platform that was super technical – great IP. ” I like people to have a healthy bit of motivation derived from wanting to stick their middle finger up at somebody who once dissed them or held them back. Would I hear him out?

Vesting 336

Vesting IP Restful Entrepreneur 336

Both Sides of the Table

SEPTEMBER 15, 2013

We have a large engineering staff led by the insanely talented Ryan Lissack (who was my co-founder at Koral and with whom I worked for many years before persuading him to leave SF for LA.). Give access to music that is legal, avoiding lawsuits and ensuring revenue isn’t captured by other IP owners.

Networking 366

Networking Media Distribution Video 366

Both Sides of the Table

JULY 10, 2010

He said that there remains a very healthy market for “data oriented&# software companies because the world is moving more toward measurability and software companies with differentiated IP often get a premium in the market. million from Trinity Ventures, Founder Collective, Highline Ventures, NextNew Ventures. total funding $1.7

IPO 242

IPO Venture Capital Private Placement Cofounder 242

Both Sides of the Table

FEBRUARY 18, 2013

Maybe small amounts of money for what founders reading these pages dream of but life-changing for many. ShayCarl (a Maker Studios co-founder) in particular. Most won’t be of the quality that you want but you now have tons of material and inspiration for your show and you own all of the submitted IP. billion views.

Video 380

Video Audience Global Distribution 380

Both Sides of the Table

MAY 5, 2011

I gave him the same advice I give nearly all over-worked, control-freak, do-everything-yourself startup founders: “Your number one priority isn’t any of these things. There’s you and your killer CTO co-founder. It’s a very cool vibe at Founder’s Coop. Passionate Entrepreneurs & Ambassadors.

Seattle 317

Seattle Silicon Valley Technical Review Los Angeles 317

Both Sides of the Table

JANUARY 29, 2010

6 months afterwards they laid off 75% of their staff and are existing on fumes to protect their IP to this day. From what I’m told the founders were already in the Schmatta ( Jobber ) business selling other people’s excess end-of-line inventory at bargain prices before there was an Internet angle. Company A never raised their round.

Entrepreneur 296

Entrepreneur Silicon Valley Term Sheet France 296

Both Sides of the Table

OCTOBER 6, 2010

Almost every deal I’ve ever funded I’ve gotten to know the founders over time. What about Product / IP? If the company “crushes it&# and has data to prove they’re doing well I suppose it hardly matters. But if they’re like most people it’s harder to measure. That’s not an M? It’s a P.

Early Stage 360

Early Stage Startup Venture Capital Seed Stage 360

Both Sides of the Table

MAY 10, 2015

I often speak about co-founder fighting and how this ends in lawsuits but this has become much more prevalent. I’d encourage you to watch this quick 3-minute video with some views on what I call “ The Co-Founder Mythology ” that is perpetuated in Silicon Valley. Lawsuits are particularly common amongst co-founders.

Vesting 150

Vesting Cofounder IP Stock Options 150

Both Sides of the Table

JUNE 8, 2014

To interconnect these computers we needed IP-based telecommunications equipment build by the likes of Cisco Systems and Juniper Networks. So the startup work moves to where the startup founders live and not vice versa. Web Services, led by Amazon’s AWS, which reduced the costs a further 90%. Welcome to the future.

Silicon Valley 390

Silicon Valley Kansas City Startup Venture Capital 390

Both Sides of the Table

FEBRUARY 25, 2010

My co-founder and other management team members wanted us to hold off and see whether we could get the deal done at a higher price. If it’s a biz deal you might care about IP protection, revenue share, investment commitments to joint marketing – whatever. I was resolute. I’m not saying to throw in the towel and not negotiate points.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Both Sides of the Table

FEBRUARY 10, 2011

The interesting thing about working with angels (the tech founder kind) is that they’ve all run their own startups before so there is instant resonance with what you’re going through, the issues you’ll face and how to best help. Founders need to see eye-to-eye or things will be very difficult. Speak human! (0:46:20)

Angel Investor 302

Angel Investor Cofounder Southern California .Net 302