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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

.   At the financial level , and assuming a harvest of the investment in the company without the need for further financing, two terms stand out as driving economics: the dividend and the liquidation preference. Second a liquidation preference and a participation.   First , dividends.

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How much equity for investors and employees?

dondodge.typepad.com

Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees? How much equity should I grant to early employees? The theory is that if they trust you and your business plan enough to give you $5M, then you have probably created something that is already worth $5M.

Equity 40
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Some lessons on startup financing from Tren Griffin and Nassim Taleb

The Equity Kicker

but she will most likely now be sitting behind a $25m liquidation preference and have taken on new investors who want to exit the company for at least $240m (to get 3x on their investment). Locking into arrangements that demand a high exit is a form of rigid business plan. Exits Startup general interest Venice Project'

Finance 129
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How I Pitched My Business and Raised $2.3 Million in VC Funding

Up and Running

I did my best to make that moment happen: I had two successes under my belt, a functioning product, a freshly-minted MBA from a top business school, and an innovative business model—we were going to give away free accounting software to small businesses and make money by helping them manage their cash flow problems.