dondodge.typepad.com

JANUARY 15, 2011

The second and third rounds of funding take additional shares of equity and dilute existing investors and founders. Here are some "average" guidelines for equity percentages at a liquidity event. My next post will be about the importance of cash flow, keeping burn rates low, and how to avoid excessive equity dilution.

Equity 40

Equity Employee Dilution Valuation 40

thestartuplawyer.com

FEBRUARY 24, 2010

Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM He obviously never launched a startup and got shafted by a co-founder.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

abovethecrowd.com

APRIL 20, 2016

The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. It will also minimize future dilution. ” Go public.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Both Sides of the Table

FEBRUARY 14, 2016

Huge funding increases lead to massive wage inflation, rent inflation and thus higher burn rates. Plus, down rounds trigger anti-dilution provisions. Or down rounds might favor earlier-stage investors because the liquidation preferences of later stage investors get reduced.

Valuation 150

Valuation Down Round Startup Later Stage 150