Startup Professionals Musings

AUGUST 24, 2016

You need to find the skills or experience you don’t have in business, technology, or money. Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. Giving a co-founder a salary won’t get you the “fire in the belly” you want.

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Equity Cofounder Technical Cofounder Intellectual Property 120

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

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Altgate

JUNE 25, 2012

We took the percentage of equity held by former employees and founders and multiplied it by the startup’s valuation during its most-recent round of financing. On average, the value of dead equity in these technology startups tripled between 2008 and 2011, from $480,000 to more than $1.5 They fail to include vesting terms (i.e.,

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Equity Vesting Cap Table Technical Review 44

Altgate

AUGUST 25, 2012

We took the percentage of equity held by former employees and founders and multiplied it by the startup’s valuation during its most-recent round of financing. On average, the value of dead equity in these technology startups tripled between 2008 and 2011, from $480,000 to more than $1.5 They fail to include vesting terms (i.e.,

Equity 28

Equity Vesting Cap Table Technical Review 28

Gust

AUGUST 30, 2012

Size, Growth, Concentration, Geography, Demographics, Competition, Channels, Regulatory Environment, Technological Developments, Adjacent Markets, Characteristics of the Deal.

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David Teten

DECEMBER 3, 2019

When I met my now-wife, I realized that any technology that can find me a spouse is a killer app. I’d argue that the same type of technologies that have revolutionized dating can revolutionize our industry. . I walk through below how progressive investors are using technology and analytics throughout all of their operations.

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Technical Review Software Review Analytics Private Equity 78

www.inc.com

SEPTEMBER 24, 2011

Technology | Thursdays. TECHNOLOGY. Technology. Science and Technology Technology. We had a rough time early on," says Parker, president and chief technology officer of Roving Software Inc. , That way, he says, "Vesting is an encouragement for the project to be completed.". Join our community.

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Austin Startup

AUGUST 20, 2017

Keep the valuations consistent with company progress. Set any vesting schedules and expiration dates on roughly similar terms, if for no other reason just so you can track all of them correctly. You may be starting something that will ride a new technology wave and be impervious to general economic cycles, or the opposite may be true.

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Technical Review Software Review Cap Table Securities and Exchange Commission 48

www.seriesseed.com

DECEMBER 9, 2012

Sets the valuation at the time of the investment. There are some Vesting terms for founders in the term sheet but I can't find them in the others documents too. This is typically done in a founder stock purchase agreement which contains vesting. Posted by: toby | 03/01/2010 at 09:52 PM. Thanks in advance! Great effort!

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Steve Blank

OCTOBER 24, 2017

Technology cycles have become a treadmill, and for startups to survive they need to be on a continuous innovation cycle. Technology Cycles Measured in Years. But in the 20th century, dominated by hardware and software, technology swings inside an existing market happened slowly — taking years, not months.

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Both Sides of the Table

NOVEMBER 4, 2009

Let’s assume that the company raised it at a normal VC valuation, which means it gave up 33% of the company and thus $5 million / 33% = $15 million post-money valuation. Stock vests for 4 years. OK, you would own 0.25% of the stock. They raised $5 million in their B round. you won the lottery). Wait a second. Sorry bud.

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Both Sides of the Table

MAY 13, 2013

Chief Vesting Officers)? And they might give a premium if the team has been around a longer period of time, has built some hard-to-build proprietary technology or has some customer traction. The Aqui-hire Business. Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal.

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Liquidation Preference Early Stage Retention Lock-up Period 357

Feld Thoughts

JULY 29, 2011

They have seen first-hand the impact technology can have in the medical field through exposure to a number of Denver Health IT initiatives. That narrowed the possibilities down to an equity transaction, which would in turn require a conversation about valuation. of the company ($50k/$2M = 2.5%). warrants or discounts).

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Equity Finance Pre-Money Valuation Denver 137

Start Up Blog

APRIL 28, 2011

BRIC nations especially are innovating and creating new technology platforms, while the west holds onto fossil fuel era. GEO-locating is the juncture that makes technology connections “real”. A community who vest their interests in each other. Gen D’s parents are also excited by new technolog y. APP Appeal.

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Moldova Internet Australia Libya 91

The Next Web

OCTOBER 7, 2013

They were referring to non-founder engineers, most commonly the first hire for technology businesses. It is typical for employees to vest their options over four years with a one year cliff, which means a new hire must stay on the company for at least one year to see any shares. Converting percents to cents (and dollars).

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Austin Startup

SEPTEMBER 19, 2017

This amount should vest over some period of time — 2 years is typical — and should be subject to the completion of concrete goals and commitments. You might consider starting with an offer to invest at a low valuation before discussing sweat equity.

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www.paulgraham.com

APRIL 28, 2010

Angels whove made money in technology are preferable,for two reasons: they understand your situation, and theyre asource of contacts and advice. Another concept we need to introduce now is valuation. I say "in theory" because in early stageinvesting, valuations are voodoo. Startups valuations aresupposed to rise over time.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

thestartuplawyer.com

FEBRUARY 24, 2010

About the Author Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. He obviously never launched a startup and got shafted by a co-founder. Click here to learn more about his practice.

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dondodge.typepad.com

JANUARY 15, 2011

Don Dodge on The Next Big Thing Thoughts on business and technology Home Archives Profile Subscribe About Me « Boston VCs gets first look at Y Combinator Demo Day | Main | Digg-nation is HUGE! Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees?

Equity 40

Equity Employee Dilution Valuation 40

www.paulgraham.com

OCTOBER 23, 2010

If you get an offer from a reputablefirm at a reasonable valuation with no unusually onerous terms,just take it and get on with building the company. [ It happens so oftenthat weve reversed our attitude to vesting. We still dont requireit, but now we advise founders to vest so there will be an orderlyway for people to quit.

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Ben's Blog

APRIL 28, 2010

The macro reason: that’s the way most of the great technology companies have been built. At Andreessen Horowitz, our primary goal is to invest in the great technology franchises. Second, for folks keeping score at home, this phenomenon appears to extend beyond high-technology companies. The innovation business.

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Both Sides of the Table

FEBRUARY 14, 2016

There is much discussion online and also in small, private groups, about why the price of technology companies – public and private – are falling. I have been talking about my concerns about valuations for the past couple of years because, well, they’ve been rising very rapidly the past two years! Mostly, no.

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discuss.joelonsoftware.com

NOVEMBER 1, 2010

Im confident that this business will be able to compensate these two additional principles along the way, after initial risk of investing their time, and will later reward their vesting with an exit strategy. They might be experienced people who want to work on a new technology but hate interviewing.

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Both Sides of the Table

AUGUST 30, 2010

Let me preface by saying I obviously have a vested interest in being wrong about tough times ahead but as the old saying goes, “hope for best, plan for the worst.”. Here talking about lithium-ion batteries and the early lead we’ve squandered in that market: “ With some technologies, both scaling and innovation take place overseas.

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Entrepreneur Technical Review Balance Sheet Government 298

Start Up Blog

DECEMBER 29, 2019

It’s pretty easy to forget how much a new technology changes our lives once it’s adopted. Sure, some new technologies are like shooting stars, but some change everything forever. That was the moment that every business knew it too was now in the technology business.

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Technical Review China IPO Vesting 105

Austin Startup

DECEMBER 10, 2017

When I mention this at technology gatherings where everyone in the room is bullish about the abundance of startup opportunities, this is greeted with some disbelief. We raised significant capital at a high valuation based on his credibility, and he certainly was entitled to call the shots on decisions like that. What’s the cause?

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www.readwriteweb.com

FEBRUARY 23, 2010

7: Invest in Advisors : Give away a small amount of stock to advisors (which they can vest after a few years) who you can call on in a pickle or for general advice as issues arise. The same crowd that attends the events also goes to the parties, but the parties are free. Posted by: Steve Weir | February 19, 2010 1:44 PM Awesome article!!

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