Berkonomics

JULY 16, 2020

It may not be equity. Venture or angel-financed companies with plenty of working capital sometimes are immune to this working capital need for some time into their growth, but at some point, it will become clear that the cheapest form of finance is not equity in a growing enterprise.

Covenant 62

Covenant Dilution Warrant Intellectual Property 62

Startup Company Lawyer

MARCH 14, 2010

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Berkonomics

AUGUST 21, 2013

Venture or angel-financed companies with plenty of working capital sometimes are immune to this need for some time into their growth, but at some point it will become clear that the cheapest form of finance is not equity in a growing enterprise. It is important to calculate the true cost of such money.

Covenant 61

Covenant Warrant Dilution Intellectual Property 61

Both Sides of the Table

APRIL 25, 2011

The founders could reinvest this in growth (0% tax, focus on future equity growth) or take the profits of $12 million and divide amongst the founding partners. Angel financing – just because VCs won’t back this kind of business doesn’t mean angels won’t. This is a huge mistake.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

techcrunch.com

SEPTEMBER 2, 2012

Convertible Equity, A Better Alternative To Convertible Debt? There has been no shortage of controversy and criticism around the convertible note, a popular investing vehicle that’s used by seed stage and angel investors. Ressi estimates that the debt note now accounts for over 50% of all angel and early stage deals.

Equity 87

Equity San Francisco Technical Review Angel Investor 87

Life Beyond Code

SEPTEMBER 27, 2011

Once the $1 million revenue milestone is crossed, entrepreneurs find it easier to find additional customers, manage working capital, and access funding, whether it is credit or equity. At 1/12th the cost, 1M/1M provides far more value. The public roundtable is a free program accessible from anywhere in the world.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116

steveblank.com

JULY 8, 2011

Blogs (VC): Antonio Rodriguez [link] – A very technical VC at Matrix partners who can actually code. Blogs (web development): Giant Robots Smashing Into Other Giant Robots – [link] Company blog of thoughtbot covering Ruby on Rails, HTML, CSS, Javascript, databases, and mobile development.

Software Review 110

Software Review Startup Silicon Valley Analytics 110