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Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

One other thing to note is that all employees – founders, early employees and later ones – all had the same vesting deal – four years – and no one made money on stock options until a “liquidity event ” (a fancy word to mean when the company went public or got sold.) It’s called Growth capital.

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Fund Raising is a Means Not an End

Steve Blank

If you’re a scalable startup, you want to spend small amounts of money (seed capital) as you run experiments testing your hypotheses. How much do they need to own at a liquidity event? These types of startups are better suited to raising money from friends, family, commercial and government small business loans, etc.

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Fund Raising is a Means Not an End

Steve Blank

If you’re a scalable startup, you want to spend small amounts of money (seed capital) as you run experiments testing your hypotheses. How much do they need to own at a liquidity event? These types of startups are better suited to raising money from friends, family, commercial and government small business loans, etc.

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Three New Types of AngelList Syndicates I Hope to See

Hunter Walker

3) The Alternate Liquidity Syndicate. Smaller liquidity events can still be valuable to a fund (very dependent upon size, stage and ownership percentage), but if you’re in the venture business, you’re playing into some variation of the ‘swing for the fences’ mentality. Would Syndicates be a solution?

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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

Angel investors don’t expect to get repaid, nor do they really want to get repaid; the return on their investment, if the startup proves a success, will come in conversion to equity followed by an eventual liquidity event (sale or IPO of the company), with a return of at least 5x or 10x the initial investment if all goes well.

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