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Why Uber is The Revenge of the Founders

Steve Blank

To turn your company’s stock into cash, you engaged a top-notch investment bank (Morgan Stanley, Goldman Sachs) and/or their Silicon Valley compatriots (Hambrecht & Quist, Montgomery Securities, Robertson Stephens). The founders along with all the other employees would vest their stock over 4 years (earning 1/48 a month).

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Corporation or LLC? Business Organizations for Tech Startups.

YoungUpstarts

Owners of corporations also pay taxes when they are paid dividends or profit from sale of the stock, which is why it is common to say that corporations are “double-taxed.” Ownership of a corporation is measured in stock. Stocks are issued at the time the company is formed, and more can be issued over time. Verdict : It’s a tie!

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These 8 Disciplines Define A Fundable Entrepreneur

Startup Professionals Musings

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.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

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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New Survey from Fenwick & West Looks at Angel Funding Landscape

ReadWriteStart

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.

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Investor Nomenclature and the Venture Spiral

K9 Ventures

In my view the terminology being used for early stage investors by the press and the media is not as clear as it should be. Common Stock. Convertible Note or Preferred Stock. Convertible Note or Preferred Stock. Preferred Stock. Preferred Stock. Preferred Stock / Warrants.

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Raising Capital? 3 Tips for Entrepreneurs – Part 2

Scott Edward Walker

By getting-out and attending conferences and meet-ups; by blogging; by reading and commenting on other blogs; and by engaging on Twitter and other social media sites. Finally, unless the startup is raising at least approximately $750,000, it generally is not in the company’s interest to issue shares of preferred stock.