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2010 VC Funding Outlook for Startups – Prepare for Winter (Part 3/3)

Both Sides of the Table

Consumer spending is 70% of the economy and will continue to be stretched – We can look all we want at tech innovation, VC funding cycles and hot M&A deals, but ultimately growth and therefore investment must be underpinned by revenue. So we loaded up on flat screen TVs, multiple generations of iPods and trips to Hawaii.

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The Greenshoe = how to repay all those that helped along the way.

Scalable Startup

If the startup actually makes it to an IPO, there is actually something you can do. The Greenshoe is an over-allotment of stock options, up to 15% of the total offering at time of IPO. Upon the IPO event, the option owner can gain the upside if the stock goes up over the initial offering price and essentially collect that difference.

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The Greenshoe = how to repay all those that helped along the way.

Scalable Startup

If the startup actually makes it to an IPO, there is actually something you can do. The Greenshoe is an over-allotment of stock options, up to 15% of the total offering at time of IPO. Upon the IPO event, the option owner can gain the upside if the stock goes up over the initial offering price and essentially collect that difference.

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What does it feel like to be the CEO of a start-up? 3 FULL TIME JOBS.

Scalable Startup

When you’re the CEO of a startup, a real startup with product and some cash in the bank and/or revenue, there are 3 FULL TIME JOBS. Raising Money – you are constantly doing this, preparing for this and thinking about this, whether it’s pre-seed, seed funding, debt, revenue, partnerships, IPO or other.

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Silicon Valley Uber Alles? I think so… Some of their Secret Weapons.

Scalable Startup

San Francisco, over 50 universities and trillions of dollars in revenue. VCs of course, Angels, they invented the term Super Angel, San Francisco, Real Estate leverage, IPO millionaires, corporate funding, Asian and European money, and on and on. It has spread way beyond to the east bay.

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If, Why, and How Founders Should Hire a “Professional” CEO

Reid Hoffman

In another study of 212 startups , Wasserman found that it was rare for Founder-CEOs to run their companies in the long term; less than half were still CEO after 3 years, and less than a quarter of the CEOs of the companies that reached an IPO were Founder-CEOs. James Slavet, a partner at Greylock, introduced me to Jeff Weiner. Conclusion.

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The Venture Capital Secret: 3 Out of 4 Start-Ups Fail

online.wsj.com

If failure is defined as failing to see the projected return on investment—say, a specific revenue growth rate or date to break even on cash flow—then more than 95% of start-ups fail, based on Mr. Ghoshs research. Less than 1% are currently in IPO registration. start-ups fail, he says. All Rights Reserved. California.