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

Gust

OCTOBER 26, 2014

As soon as you bring in investors, they force you to plan for an exit (merger or sale) in three to five years. All you need is a blog, Twitter, email, some business card stock, and a little creativity. Don’t think about the exit. Sometimes the tiniest details will throw your startup company into disaster.

Bootstrapping 176

Bootstrapping Startup Merger Salary 176

Gust

AUGUST 19, 2012

Marketing, sales, and partners. Describe marketing strategy, sales plan, licensing, and partnership plans. What is the planned exit strategy (IPO, merger, sale, including likely candidates)? List and position your competition, or alternatives available to the customer. Show a breakdown of the intended uses of these funds.

Exit Strategy 146

Exit Strategy Elevator Pitch Burn Rate Merger 146

Gust

AUGUST 5, 2012

Marketing, sales, and partners. Describe your market penetration strategy, sales channels, pricing, and strategic partnerships. Convince investors that you have lined up sales channels, strategic partners, and a viable marketing strategy. Competing with IBM, Microsoft, and other large companies should never be minimized.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Gust

NOVEMBER 22, 2011

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. At this stage, you need investment bankers to negotiate a merger or acquisition (M&A), go private, or help you go public with an Initial Public Offering (IPO). Growth stage.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

Gust

OCTOBER 21, 2011

For convertible notes, the only liquidity event we need be concerned with is an acquisition of the startup in the near future, before the maturity date; otherwise, the notes will convert to equity of one kind or another, and the eventual sale of that equity (in a public offering, acquisition, or private sale) is a different subject for another day.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Gust

MAY 24, 2012

If all of the above seems too dry and abstract, the Facebook S-1 filing does a good job of explaining in plain English : Mr. Zuckerberg has the ability to control the outcome of matters submitted to our stockholders for approval, including the election of directors and any merger, consolidation, or sale of all or substantially all of our assets … Additionally, (..)

IPO 159

IPO Equity Common Stock Stock 159