Both Sides of the Table

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Should Your Startup Give Performance-Based Warrants?

Both Sides of the Table

the economic benefits to BigCo never warrant all of the time and effort they put into getting a stake in your company and trying to make that stake worth money. So Plan B for many BigCo’s is to take “performance-based warrants.&# The following is a guide to what these are, whether to offer them and how to structure them.

Warrant 298
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Master of Customer Acquisition, Matt Coffin, On Startups …

Both Sides of the Table

Given the bank more “warrant coverage.&#. Called Tim Spicer (c-companies partner) and he told him matt, they only want one thing, more warrant coverage!!! Mark: 10% warrant coverage is like stock options. A friend helped him get out of this situation and changed Matt’s life forever. The answer? Something so simple.

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Be Honest About Whether Your Product Really Makes a Difference

Both Sides of the Table

And for f**k sakes please don’t use cumulative numbers to make yourself feel great unless they’re warranted. His point is that you should figure out the metrics that TRULY matter in your business and hold yourself accountable to these. Not vanity metrics. Push yourself hard to be honest with yourself.

Product 150
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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

People raised rounds with “a discount to the next round&# or “warrant coverage.&# Yes, these give cheaper prices to early angels but potentially not much of a discount if the company becomes hot. The reason I have generally been against convertible debt is that historically it was a mechanism that avoided price.

Finance 286
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Here’s How to Cancel a Meeting the Right Way

Both Sides of the Table

In this case it warrants a personal email (or better yet a phone call) from you and a Herculean effort to reschedule the meeting. The day of the meeting - It better be a great freakin’ reason like travel problems, you’re sick or there’s some burning issue you can’t avoid. Recently a team flew to meet me.

Las Vegas 369
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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

He or she wants to know how long the money you will raise will last and whether this is long enough to warrant taking a risk on funding you. Simply put, a VC wants to evaluate how much cash you’re raising and whether this amount is realistic.

Burn Rate 247
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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

You will build out features or expend to platforms — often before you have enough market feedback to warrant it. It is a truism that with more capital you will hire people more quickly and spend more liberally whether it’s on external contractors, PR firms, attending events, doing legal work (trademarks, patents) or whatever.