Steve Blank

MAY 29, 2011

The email continued, &# The problem I’m working on is that many founders are either making uninformed decisions or inefficiently learning the new skills they need. The solution I’m exploring is a just in time learning methodology that accelerates founders’ learning curve by aggregating relevant content, peers and mentors.&#.

Technical Cofounder 333

Technical Cofounder Early Stage Startup Silicon Valley 333

David Cohen

MARCH 30, 2020

Founders, I’m talking to you. I’ve seen past crises, cycles, and downturns as an investor and as a founder. Uber took the shockingly low valuation of $4m when raising it’s first $1.5m. 3m valuation. Less than a $2m valuation for their seed round. March 30, 2020. I’m one of you. It’s OK to be scared.

Founder 174

Founder Valuation Startup IP 174

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?&# Either would be fine with startups, so long as they can easily change their valuation. When I’m in, I’m in.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Haystack

DECEMBER 29, 2018

Also during this time, the underlying metrics in that business can change positively, potentially trapping companies to accept the initially-agreed upon valuation. companies, more sensitivity around technology IP and security. by a mile, continued to soar in volume and valuation. In the meantime, we have what we have today.

Technical Review 165

Technical Review Venture Capital Russia China 165

Hunter Walker

AUGUST 8, 2023

At the time, this is last quarter and the stock market has trended upwards nicely since then (a potential leading indicator of private tech valuations), we all agreed venture portfolios were probably still 25-40% overvalued. Valuations.

Portfolio 98

Portfolio Cap Table LP Valuation 98

Hunter Walker

MAY 13, 2023

I was on both sides of these transactions – buying startups for Google/YouTube and angel investing in high quality technical founders. And when they’re giving stock to existing shareholders instead of cash it’s at high 2021 valuations, buried below a preference stack.

Early Stage 117

Early Stage Cap Table Acquisition Sales 117

Both Sides of the Table

SEPTEMBER 18, 2014

Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. If you’re wildly successful early on or if they help you achieve a great valuation they actually pay a significant price for their eventual stock even though they took much more risk than a future investor and backed you early.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Austin Startup

AUGUST 20, 2017

Keep the valuations consistent with company progress. Kalanick, former investor BFF turned highly disappointed by founder behavior. The bottom line is that the pedigree of your investors will have much to do with your ultimate valuation and with your enjoyment of the startup experience. How about your Investors ?

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Both Sides of the Table

JUNE 5, 2015

In the old days VCs funded off of a “pre-money” valuation. If you add the pre-money valuation (let’s say $8 million) to the amount of money you’re raising (let’s say $2 million) you get the post-money valuation. I can boil it down to how this tension plays out. Those are the big three.

Pre-Money Valuation 150

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

YoungUpstarts

SEPTEMBER 4, 2017

by Paul Towers, founder & CEO of Task Pigeon. For startup founders and CEO’s it’s also just as common to see them place too much focus on the amount of money raised, and the pre-money valuation, rather than the value that each investor can bring to the table. Plus, founders and entrepreneurs talk. Industry Knowledge.

Pre-Money Valuation 167

Pre-Money Valuation Seed Stage IP Deal Flow 167

Startup Professionals Musings

MAY 23, 2012

In a startup, that needs to be the founder or CEO, and that person has to be regularly and personally involved. Longer-term, enhanced product value begets superior company valuation through your organization’s intellectual property (IP) portfolio. This is an imperative. No risk, no innovation. Accountability.

Intellectual Property 247

Intellectual Property IP Valuation .Net 247

Gust

SEPTEMBER 17, 2014

Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. If you’re wildly successful early on or if they help you achieve a great valuation they actually pay a significant price for their eventual stock even though they took much more risk than a future investor and backed you early.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

VC Cafe

SEPTEMBER 26, 2010

Very cool concept and I want to thank the founder Adil Mohammed for inviting me to take part in it. It’s nice to have protected IP, but that will mostly matter later on in the event of an acquisition. I’ve learned this first hand from Mark Gerson, the founder of Gerson Lehrman Group. Patented Technology?

Elevator Pitch 102

Elevator Pitch Incubator Technical Review Startup 102

YoungUpstarts

APRIL 18, 2019

by Chris Grey, co-founder and COO of CapLinked. So founders, listen up: Before envisioning your new company as the next headline-making unicorn, consider all the hard work — and luck — it takes to even reach profitability. That way, founders can set reasonable, attainable goals for their team and their company.

Cofounder 118

Cofounder Startup Private Equity Equity 118

Startup Professionals Musings

MARCH 9, 2011

In a startup, that needs to be the founder or CEO, and that person has to be regularly and personally involved. Longer-term, enhanced product value begets superior company valuation through your organization’s intellectual property (IP) portfolio. This is an imperative. No risk, no innovation. Accountability.

Intellectual Property 234

Intellectual Property IP Valuation .Net 234

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

mashable.com

OCTOBER 16, 2010

All of this is according to Paul Graham, co-founder of the early-stage investment fund Ycombinator. The result is that many venture capital firms are now making smaller angel investments in an attempt to get close with startup founders that are likely to raise bigger funding rounds later on. SCVNGR Makes Major Enhancements to iP.

Angel Investor 84

Angel Investor Venture Capital Social Media Technical Review 84

mashable.com

OCTOBER 16, 2010

All of this is according to Paul Graham, co-founder of the early-stage investment fund Ycombinator. The result is that many venture capital firms are now making smaller angel investments in an attempt to get close with startup founders that are likely to raise bigger funding rounds later on. SCVNGR Makes Major Enhancements to iP.

Angel Investor 83

Angel Investor Venture Capital Social Media Technical Review 83

View from Seed

JANUARY 11, 2017

These corporate VC activities go hand in hand with other strategies of large companies including internal R&D, IP licensing, M&A, etc. . The round was heavily oversubscribed so the founders could choose their investment partners, but the founders decided to include NVIDIA a strategic investor.

Strategic Investors 120

Strategic Investors Post-Money Valuation Seed Stage Cofounder 120

Scott Edward Walker

NOVEMBER 2, 2011

Set-up vesting schedules for the founders (see post here ) and file 83(b) elections with the IRS (see #3 here ). Button-down IP ownership and assignment issues (see post here ). Incorporate in Delaware and qualify the company to do business in the state in which its principal office is located (see #2 here ).

Accredited Investor 111

Accredited Investor Stock Options Delaware Silicon Valley 111

Startup Professionals Musings

FEBRUARY 28, 2010

I would like my sweat equity and existing IP to be the risk that I incur without also risking an asset that could easily represent the majority of my total assets. By separating the name in a lease arrangement, I was also hoping to be able to offer greater equity to a potential co-founder and early employees.

Sweat Equity 188

Sweat Equity Entrepreneur Equity CPA 188

www.seriesseed.com

DECEMBER 9, 2012

Sets the valuation at the time of the investment. It would be helpful to get a California standard employee manual, employee contract/agreements, IP ownership release to company, and confidentiality. This is all built into a typical founder stock purchase agreement. This is great.simplified funding/founders docs out of the box.

Finance 40

Finance Term Sheet Vesting LLC 40

Agile VC

AUGUST 9, 2012

Governance/Control – Founder/CEO Mark Pincus has sold a good amount of his stock and owns <20% of shares outstanding, but now essentially has unilateral voting control of the company. The “value” case goes like this: A) Valuation Net of Cash – Zynga’s market cap sits at around $2.2-2.3B

Stock 160

Stock LBO .Net Valuation 160

Early Growth Financial Services

JULY 16, 2015

We had a lively webinar with Mary Juetten, Founder and CEO of TrakLight, on major mistakes that could sink your business. Business Risk #2 — Not protecting your IP Why is having an IP strategy important? IP could account for as much as 80% of your business’ value. Set up your legal entity on day one.

IP 28

IP Valuation Founder Business Plan 28

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 Intellectual Property Stock Options IP 365

Startup Professionals Musings

MARCH 15, 2010

In a startup, that needs to be the founder or CEO, and that person has to be regularly and personally involved. Longer-term, enhanced product value begets superior company valuation through your organization’s intellectual property (IP) portfolio. This is an imperative. No risk, no innovation. Accountability.

Intellectual Property 122

Intellectual Property IP Valuation .Net 122

Scott Edward Walker

OCTOBER 27, 2015

We charge a flat fee of $2,000, plus filing fees, for up to three co-founders and it includes unlimited phone calls and emails. Thus, founders never have to worry about picking-up the phone and asking their lawyers questions. Button-down IP ownership and assignment issues (see post here ).

Intellectual Property 40

Intellectual Property Accredited Investor Vesting Delaware 40

ithacaVC

JULY 30, 2011

Brad Feld just sent out his first Finance Fridays post called “Getting Started -Allocating Equity and Founder’s Investment” This post is not about financial statement literacy, but is meant to begin setting the stage for the hypothetical company that will be the subject of the Finance Fridays series. Do you agree?”

Finance 49

Finance IP Equity Valuation 49

Business Plan Blog

DECEMBER 10, 2013

When raising pre-seed capital from friends, family, and founders (FFF) you’ll want to consider the milestones that Angel investors care about and be sure to raise enough capital to reach those milestones. Common types of IP rights include copyright, trademarks, patents , design rights, and trade secrets. Product Development.

Angel Investor 55

Angel Investor Intellectual Property Seed Capital Advisory Board 55

Business Plan Blog

NOVEMBER 22, 2013

The use of your initial friends, family, and founders (FFF) capital should be directed towards achieving the milestones that will attract seed or angel investors (likewise, the use of your seed funding should be directed towards achieving the milestones that will attract Series A investors). Intellectual property. Market Validation.

Intellectual Property 55

Intellectual Property Advisory Board Startup Seed Capital 55

Up and Running

JANUARY 5, 2018

Jet.com founder Marc Lore ascended to CEO of Walmart’s US e-commerce operations, and since joining has taken the company on an e-commerce/apparel acquisition spree. While Walmart hasn’t acquired in this area yet, its internal initiatives and IP show interest. Walmart’s $3.3B Increase in-store efficiency.

Acquisition 94

Acquisition Hawaii Partner Non-Compete 94

Both Sides of the Table

FEBRUARY 25, 2010

million at a $15 million pre-money valuation. 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. Morgan Stanley had proposed a higher valuation to let them in. million at a $15 million pre-money valuation. Yes, this was stupid.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

www.paulgraham.com

OCTOBER 23, 2010

And since a startup thatsucceeds ordinarily makes its founders rich, that implies gettingrich is doable too. A lot ofwould-be startup founders think the key to the whole process is theinitial idea, and from that point all you have to do is execute.Venture capitalists know better. Ideally you want between two and four founders.

Startup 105

Startup Cofounder Software Stock 105

This is going to be BIG.

SEPTEMBER 6, 2019

I don’t know where its valuation will wind up, but I believe that there is a going concern there that is worth billions of dollars. These late stage funds are often the ones that get crunched in market downturns—because they find themselves over their skis quickly on valuation—whereas early stage funds have longer time horizons anyway.

Ratchet 116

Ratchet Early Stage Valuation IPO 116

This is going to be BIG.

JANUARY 19, 2010

The hilarious thing is that Yelp actually thinks it can beat Foursquare at its own game—and it is a game, one that founder Dennis Crowley has been thinking about for at least 8 years. Yelp missed its chance to exit at a nice valuation after six years of hard work. Gaming dynamics is not the core competency of Yelp, so why bother?

Technical Review 68

Technical Review Venture Capital IP API 68