Steve Blank

OCTOBER 24, 2017

Traditionally, in exchange for giving the company money, investors would receive preferred stock, and founders and employees owned common stock. Preferred stock had specific provisions that gave investors control over when to sell the company or take it public, hiring and firing the founder etc.

Founder 245

Founder Technical Review CTO Hire IPO 245

Startup Professionals Musings

NOVEMBER 30, 2015

A C-corporation is more complex and expensive, and is recommended only if you expect to pitch to professional investors who demand preferred stock, or to more than 100 potential shareholders. Even before you build a product, you should be interacting with potential customers in person, and through social media.

Intellectual Property 120

Intellectual Property Entrepreneur Preferred Stock Stealth 120

Gust

MAY 24, 2012

This is nothing new; long favored by family-controlled media empires such as Rupert Murdoch’s News Corporation , among Internet firms alone, Google took a dual-class approach when going public in 2004. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

IPO 159

IPO Equity Common Stock Stock 159

YoungUpstarts

AUGUST 25, 2015

Stocks are issued at the time the company is formed, and more can be issued over time. You can control the power of your company’s stock by issuing different classes. The ownership structure of an LLC is a blank slate. Doing things the right way from the start will save you money and time down the line. [1]

LLC 100

LLC Technical Review Software Review Limited Liability Company 100

ReadWriteStart

JUNE 1, 2020

Funding is not an indicator of success, irrespective of the impression that you might get from the news and media. The shares given out can either be common stocks or preferred stocks. ? Debt investment. Funding is just a stepping stone. Many businesses around us have grown without any funding.

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Startup Entrepreneur Elevator Pitch Seed Stage 150

ReadWriteStart

APRIL 7, 2011

The survey includes responses from 52 Internet, digital media, and software companies that raised money in the Silicon Valley and Seattle in 2010. The majority of financings was structured as preferred stock (69%), as opposed to convertible note financings (31%), and the vast majority of those (83%) had their conversion price capped.

Preferred Stock 115

Preferred Stock Silicon Valley Seed Stage Venture Capital 115

abovethecrowd.com

FEBRUARY 24, 2015

Most private company financings involve the use of preferred stock with liquidation preferences. These liquidation preferences give the investor a debt-like downside protection. All of this suggests that we are not in a valuation bubble, as the mainstream media seems to think. We are in a risk bubble.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40