Gust

AUGUST 10, 2014

The only path to any return for equity investments is a liquidity event, like a merger or acquisition (M&A), or IPO. Build a path to 10x return. Thats why investors want to hear about your exit strategy.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

Gust

NOVEMBER 4, 2011

The TL;DR answer to the stock option question is that MySpace options were cashed out at modest value at the time of the FIM merger, coming on the heels of the spin-out of MySpace into a separate subsidiary by parent company Intermix Media, with an infusion of new capital from Redpoint Ventures. Read on for a fuller explanation.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Startup Professionals Musings

MAY 13, 2011

These investors want to know that you are thinking about a liquidity event – when and how they will get their money out, with ROI. Otherwise, identify your preferred exit strategy, including specific candidates for merger or sale, and timeframe. This section is only required when you expect outside investors.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Gust

AUGUST 5, 2012

These investors want to know that you are thinking about a liquidity event – when and how they will get their money out, with ROI. Otherwise, identify your preferred exit strategy, including specific candidates for merger or sale, and timeframe. This section is only required when you expect outside investors.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Steve Blank

MARCH 18, 2011

The reward for doing so was a liquidity event via an Initial Public Offering. Tech IPOs were a receding memory, and mergers and acquisitions became the only path to liquidity for startups. They taught you about customers, markets and profits.

Internet 334

Internet IPO Silicon Valley Agile 334

Startup Professionals Musings

APRIL 22, 2010

These investors want to know that you are thinking about a liquidity event – when and how they will get their money out, with ROI. Otherwise, identify your preferred exit strategy, including specific candidates for merger or sale, and timeframe. This section is only required when you expect outside investors.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Gust

OCTOBER 21, 2011

This week we move on to something near and dear to the hearts of entrepreneurs and investors alike: The exit, more formally known as a “ liquidity event.” a mix of cash and stock) received by other equity holders in the transaction. ” Mergers and acquisitions come in many varieties.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Startup Professionals Musings

JUNE 6, 2022

Once invested, you should expect no return until the first “liquidity” event in 3-5 years, maybe longer. Liquidity events include merger or acquisition (M&A), or Initial Public Offering (IPO) when the stock goes public. Think long-term. It’s a lot easier to buy stock in a startup than it is to sell it.

Liquidity Event 300

Liquidity Event Angel Investor SEC Accredited Investor 300

Startup Company Lawyer

MARCH 14, 2010

Changes in preferred and merger/sale of assets only. Board composition. 2 common; 1 preferred. 2 common, 1 preferred. 2 common, 1 preferred (if Series AA is at least 5% of fully-diluted). Protective provisions. Typical list for company-friendly VC financing. Changes in preferred only. Information rights. Unaudited annual and quarterly.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Startup Professionals Musings

SEPTEMBER 6, 2019

Once invested, you should expect no return until the first “liquidity” event in 3-5 years, maybe longer. Liquidity events include merger or acquisition (M&A), or Initial Public Offering (IPO) when the stock goes public. Think long-term. It’s a lot easier to buy stock in a startup than it is to sell it.

Liquidity Event 224

Liquidity Event SEC Entrepreneur Accredited Investor 224

Startup Professionals Musings

AUGUST 29, 2018

Payoff after a liquidity event is difficult and unpredictable. Professional investors like to keep tight control of capitalization tables and all stock owners, to facilitate their own payoff when a sale, merger, or public stock offering is held.

Equity 180

Equity Due Diligence Angel Groups Liquidity Event 180

Startup Professionals Musings

SEPTEMBER 16, 2017

Once invested, you should expect no return until the first “liquidity” event in 3-5 years, maybe longer. Liquidity events include merger or acquisition (M&A), or Initial Public Offering (IPO) when the stock goes public. Think long-term. It’s a lot easier to buy stock in a startup than it is to sell it.

Liquidity Event 184

Liquidity Event SEC Accredited Investor Angel Investor 184

Startup Professionals Musings

NOVEMBER 1, 2013

Once invested, you should expect no return until the first “liquidity” event in 3-5 years, maybe longer. Liquidity events include merger or acquisition (M&A), or Initial Public Offering (IPO) when the stock goes public. Think long-term. It’s a lot easier to buy stock in a startup than it is to sell it.

Accredited Investor 219

Accredited Investor Liquidity Event SEC Stock 219

Startup Professionals Musings

SEPTEMBER 24, 2012

Once invested, you should expect no return until the first “liquidity” event in 3-5 years, maybe longer. Liquidity events include merger or acquisition (M&A), or Initial Public Offering (IPO) when the stock goes public. Think long-term. It’s a lot easier to buy stock in a startup than it is to sell it.

Portfolio 228

Portfolio Accredited Investor Liquidity Event SEC 228

Startup Professionals Musings

FEBRUARY 6, 2015

Once invested, you should expect no return until the first “liquidity” event in 3-5 years, maybe longer. Liquidity events include merger or acquisition (M&A), or Initial Public Offering (IPO) when the stock goes public. Think long-term. It’s a lot easier to buy stock in a startup than it is to sell it.

Accredited Investor 120

Accredited Investor Liquidity Event SEC Entrepreneur 120

VC Cafe

NOVEMBER 9, 2011

An ipo is not really an exit, it is a liquidity event. Larry: After attending a recent VC congress in Israel, he found out that merger exits are not as profitable as IPOs in terms of building VC returns. It is not the end game, and if you think so, then you are missing the point. It is a 1-mile marker on a 100 mile road.

IPO 92

IPO Cofounder Europe 92