Both Sides of the Table

JULY 29, 2010

The downside is that people need to buy their stock. I talked also about 409a valuations and why common stock purchases cost less than preferred stock purchases. But one of the things that VCs look for is how you get access to us. But if you do this early (pre VC) then the price points are pretty low.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

David Teten

MARCH 14, 2018

– Create a franchise and license access to it , e.g., the Draper Venture Network. Typically they get cofounder common equity, in addition to the preferred stock that a conventional VC gets. Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

David Teten

AUGUST 19, 2019

Kauffman Foundation: Access to Capital for Entrepreneurs: Removing Barriers. Sample Series B Preferred Stock sample term sheets from: Kauffman Foundation and Carlton Fields Jorden Burt. With less restrictions, more Tampa Bay companies are turning to revenue-based financing. Social Impact. Conferences. Alternative Capital Summit.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Startup Professionals Musings

MARCH 11, 2013

For example, you and your partner may be perfectly happy with an LLC, but venture capital or Angel investors may insist on having “preferred” stock, forcing an upgrade to a C-Corp. Legal requirements and tax requirements change as a business grows, so your entity needs to be reviewed regularly.

LLC 234

LLC Nevada Delaware Limited Liability Company 234

K9 Ventures

MAY 14, 2011

They provide additional value add in the form of coaching and mentorship, and most of all access to a network of other entrepreneurs and smart people – that to me is really the real value of being involved with an incubator / accelerator. Common Stock. Convertible Note or Preferred Stock. Preferred Stock.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

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

Up and Running

DECEMBER 1, 2015

Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. According to intellectual property attorney Kurt Anderson, shareholders generally have the right to access certain corporate records and financial information.

Equity 60

Equity Employee Stock Options Vesting 60