David Teten

JANUARY 19, 2021

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity. This applies if the investment converts into common stock; details are beyond this essay’s scope. Example VC.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

FEBRUARY 23, 2015

He wants a chance at changing life’s circumstances with building equity value that might free him and his family from the rat-race of 529 accounts, property taxes, summer-school tuitions and even spending some cash on aging parents. There is often money to be made in finding places with under-valued IP. He has the hunger.

Technical Review 150

Technical Review Liquidation Preference Silicon Valley IP 150

Occam's Razor

JUNE 4, 2018

In-stock status. Delivery times based on geo/IP/mobile phone location. In-stock status. Only 15 left in stock. Or, 1 in-stock in the REI store next to your office. There is a line in there about your company’s unique value proposition. Delivery times based on geo/IP/mobile phone location.

Conversion 124

Conversion eCommerce Artificial Inteligence Aggregator 124

View from Seed

DECEMBER 4, 2014

Additionally, you should put whatever agreement you reach to paper , even if you have not yet incorporated or had your legal counsel draw up the founder stock paperwork. You can then work with your law firm to formally draw up founder common stock paperwork either then or subsequently. Ideation/IP.

Equity 315

Equity Founder Sweat Equity Cofounder 315

Gust

DECEMBER 1, 2011

Nevertheless, choosing to defer basic corporate housekeeping items can be disastrous in some circumstances, as when the failure to spend a few thousand dollars on legal fees to clarify IP ownership and equity arrangements comes back to bite a successful company to the tune of millions of dollars on the eve of a liquidity event. Good stuff!

IP 114

IP Intellectual Property Equity Liquidity Event 114

Agile VC

DECEMBER 4, 2014

Additionally, you should put whatever agreement you reach to paper, even if you have not yet incorporated or had your legal counsel draw up the founder stock paperwork. You can then work with your law firm to formally draw up founder common stock paperwork either then or subsequently.

Cofounder 255

Cofounder Equity Founder Sweat Equity 255

Version One Ventures

OCTOBER 15, 2020

But the Lightning Network offers two entirely different value props that no other blockchain or smart contracts platform can match: Instant settlement in bitcoin with nearly 0 fees (Ethereum fees spiking to >$10 /transaction during the DeFi craze of sumer 2020 was a good reminder of its own scalability limitations).

Networking 168

Networking Global OTC Security 168

Both Sides of the Table

OCTOBER 17, 2019

Just as I was getting the swing of things the world shifted beneath my feet and the stock market went into a free fall and venture capital all but shut down for nearly a year. Defensible IP becomes insanely valuable?—?particularly Over the past 2.5 particularly as you achieve scale.

IP 223

IP Intellectual Property IRR Cofounder 223

Hearpreneur

JULY 1, 2020

Several “experts” in marketing and advertising, and IP lawyers, tried to talk me into changing it. My journey building the software naturally led into starting a marketing consulting firm that helps SMEs rank on page 1 for their highest value keywords. Buttercloth was born. It was just natural. But I stuck to my gut feelings.

Naming 150

Naming Entrepreneur New Hampshire LLC 150

Hunter Walker

MAY 13, 2023

Sometimes you’d even get lucky and receive stock in the acquirer, which was how I gained pre-IPO equity in high growth stars like Pinterest and Facebook. 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 118

Early Stage Cap Table Acquisition Sales 118

Growthink Blog

SEPTEMBER 13, 2017

Sure, they work hard every day but they don’t make meaningful progress toward their most important goal - increasing the value of their business via improving its financial performance and strategic positioning. Curious to know how buyers might value your company now? Putting out there what our actual financial results have been.

Harvest 48

Harvest IP Software Review Forecast 48

Agile VC

DECEMBER 4, 2014

Additionally, you should put whatever agreement you reach to paper, even if you have not yet incorporated or had your legal counsel draw up the founder stock paperwork. You can then work with your law firm to formally draw up founder common stock paperwork either then or subsequently. appeared first on AGILEVC.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

Both Sides of the Table

SEPTEMBER 25, 2010

These days there are many lawyers that will do equity deals cheaply as long is it is a standardized, simplified term sheet, early stage, no serious investor / management debates, limited IP / customers / due diligence and as long as they perceive you as a “hot&# company that’s likely to need legal services for many years ahead. (if

Finance 286

Finance Term Sheet Technical Review Warrant 286

Both Sides of the Table

SEPTEMBER 18, 2014

How will the lead determine a value? In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. Less than you’ll probably grant your most junior employees in stock options? Stock Option plans. How will you price the next round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Hunter Walker

AUGUST 8, 2023

Satya and I were having lunch (yummy Chinese food) with our LPAC and the conversation turned to generally “how much more did venture portfolios have to fall before they found their true current value?” And fascinating new advances (and needs) in AI, climate, biology, etc are driving tech-IP driven startups.

Portfolio 99

Portfolio Cap Table LP Valuation 99

David Teten

MARCH 14, 2018

The job of a VC is to invest in unprofitable businesses in anticipation of creating long term value. Typically they get cofounder common equity, in addition to the preferred stock that a conventional VC gets. engineers, designers, business developers). Prehype , Rocket Internet , and numerous others. Previously posted on PEHub.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Both Sides of the Table

APRIL 27, 2010

There is a lot of long-term value in loyalty. I learned how to retain employees when stock options were no longer a real currency. One of the things that Jason Calacanis talks about in his post on the topic is the value of personal loyalty. No rule is ever absolute no matter how it sounds when one writes a blog.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Both Sides of the Table

MAY 2, 2015

Also, LTV/CAC ratios are total b t if you don’t have enough capital to fully realize your “lifetime” value. I know you want to live in a world in which you can just present your great ideas to a board, you’ll have great value-added discussions and the right answer will emerge. That’s fantasy.

Operations 150

Operations Metrics Early Stage Non-Compete 150

YoungUpstarts

SEPTEMBER 4, 2017

Investing in startups is a lot more than just buying “stock” in a company. 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. Industry Knowledge.

Pre-Money Valuation 187

Pre-Money Valuation Seed Stage IP Deal Flow 187

The Next Web

JANUARY 24, 2014

So let’s take stock: What do we offer? The company has a checkered past, but it was the first corporation in history to issue stock in exchange for capital. This legal-financial ingenuity lead to the creation of the world’s first stock exchange in 1602: the Amsterdam Stock Exchange. Not in my view.

Netherlands 143

Netherlands Technical Review Stock Silicon Valley 143

The Startup Lawyer

MARCH 17, 2010

4) Type of Shares: Common Stock. (5) 5) Par Value of Common: $0.0001. (6) 4) Type of Shares: Common Stock. (5) 5) Par Value of Common: $0.0001. (6) 10) Consideration for Founders Shares: Cash & IP. (11) 11) Handling of “Lost Founders&# : Lock Down the IP. 2) State of Incorporation: Delaware. (3)

Accredited Investor 112

Accredited Investor Delaware NDA Vesting 112

The Startup Lawyer

MARCH 17, 2010

4) Type of Shares: Common Stock. (5) 5) Par Value of Common: $0.0001. (6) 4) Type of Shares: Common Stock. (5) 5) Par Value of Common: $0.0001. (6) 10) Consideration for Founders Shares: Cash & IP. (11) 11) Handling of “Lost Founders&# : Lock Down the IP (then Wish Them Well). Hell Yes. (9)

Accredited Investor 112

Accredited Investor Delaware NDA Vesting 112

Both Sides of the Table

AUGUST 17, 2009

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. In some countries outside the US (the UK for example) employers can specify in an employment contract that ANY IP you develop while you’re employed by that company is owned by them.

Founder Vesting 365

Founder Vesting Intellectual Property Stock Options IP 365

Tim Keane

JANUARY 12, 2010

Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values.   Most often, investors who are interested in a company raise this issue first to measure the company’s response to a market value offer.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Austin Startup

AUGUST 20, 2017

Between day one and your first confrontations with those issues, particularly if you’ve raised any outside capital, you will have formed a board and stocked it with people you can really get to work on your behalf. Do they perceive enough value to pay prices that create for you a profit margin that matches your business model?

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Gust

SEPTEMBER 17, 2014

How will the lead determine a value? In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. Less than you’ll probably grant your most junior employees in stock options? Stock Option plans. They already locked in stock at a lower price.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Gust

DECEMBER 8, 2011

Enter into agreements between Newco and founders, early contributors, outside advisors or service providers under which they contribute or assign all intellectual property related to the company’s business to Newco in exchange for the issuance of founders’ stock (Common Stock). Make escrow arrangements for restricted stock (i.e.,

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

The Startup Lawyer

AUGUST 18, 2010

Little or no value. In fact, typical incorporation services do not even offer a stock purchase agreement. And you can definitely forget about a technology transfer agreement or anything else IP-related. The 19 other “tasks&# they list? Want to vest your founders’ shares ?

Vesting 94

Vesting IP Startup Stock 94

Austin Startup

APRIL 25, 2017

And to top it all off, Snap isn’t offering voting rights to public market investors, which should discount the stock price further. Snap’s Path To AR Dominance Controlling the underlying OS will be paramount to capture value. How can one justify a $20B valuation for Snap? This actually works in Snap’s favor.

Valuation 48

Valuation Technical Review Forecast Social Network 48

mashable.com

OCTOBER 16, 2010

More and more VCs have deals in their portfolios that have long outlasted their investment value, and more and more VCs are seeking to unload these deals, at a loss, as reverse merger vehicles. SCVNGR Makes Major Enhancements to iP. 10 Wonderful Wildlife iPhone Photographs Android Gingerbread Confirmed, Mascot.

Angel Investor 84

Angel Investor Venture Capital Social Media Technical Review 84

mashable.com

OCTOBER 16, 2010

More and more VCs have deals in their portfolios that have long outlasted their investment value, and more and more VCs are seeking to unload these deals, at a loss, as reverse merger vehicles. SCVNGR Makes Major Enhancements to iP. 10 Wonderful Wildlife iPhone Photographs Android Gingerbread Confirmed, Mascot.

Angel Investor 83

Angel Investor Venture Capital Social Media Technical Review 83

Both Sides of the Table

DECEMBER 13, 2010

Since that date the S&P 500 is up 2.45% while Accenture stock is up 206% with revenue of $23 billion and a market cap of $32 billion. It’s why as an investor I look for talented teams with long-term vision, a unique point-of-view, differentiated IP and a desire to build something enduring.

Turkey 302

Turkey Differentiation IP Technical Review 302

Scott Edward Walker

FEBRUARY 1, 2014

Mistake #2 : not buttoning-down IP ownership issues (at 10:20). S corp vs. C corp – “qualified small business stock” . Mistake #2: Not Buttoning-Down IP Ownership Issues. Zuckerberg” problem – IP is not assigned to the company by the founders and/or third-party developers (including in foreign countries).

Software Review 111

Software Review Delaware Accredited Investor Due Diligence 111

Scott Edward Walker

FEBRUARY 1, 2014

Will they add significant value (e.g., Prior to the event, I conducted a legal workshop entitled “The 5 Biggest Legal Mistakes That Startups Make,” which I have uploaded below. issues to address include: How have they treated their other portfolio companies? Are they good guys or jerks? Can they be counted-on and trusted? Startup Issues'

Software Review 111

Software Review Delaware Accredited Investor Due Diligence 111

ConversionXL

FEBRUARY 25, 2016

increase in average order value. They deployed step-by-step tutorials that updated in real-time as visitors completed each step of the post-conversion process, which helped get visitors to the core value faster. The onboarding process brought more people to the core value, thus increasing revenue and improving retention.

Web 48

Web Software Review Jordan Technical Review 48

The Startup Magazine

AUGUST 12, 2020

Generally speaking, entrepreneurs, young professionals and other newcomers thinking about investing will have some familiarity with the stock market. You can buy shares in several different stocks, sure, but that doesn’t truly diversify your portfolio. Mutual funds are a type of alternative investment. Intellectual Property.

Intellectual Property 99

Intellectual Property IP Stock Equity 99

infochachkie.com

SEPTEMBER 24, 2011

Can a fee-based consultant ever economically add value to a startup? The relative value of the consultant’s impact upon the client’s business is usually not the consultant’s primary consideration when evaluating whether or not to accept a particular engagement. IP) is an ugly thing at a startup. Uncle Saul. Uncle Saul.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40