Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success.   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.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Up and Running

AUGUST 17, 2015

As I read stories of college dropouts who had successfully sold tech companies, or entrepreneurs with innovative ideas who made it big on Shark Tank, it became clear that there was no set path to startup success. Once I considered the hefty $200K all-in price tag, skipping business school almost seemed like the obvious decision.

Entrepreneur 60

Entrepreneur Cofounder Angel Investor eCommerce 60

Berkonomics

MAY 22, 2014

A Private Placement Memorandum (PPM) is a special business plan defined to meet an SEC exemption. Angels, as group of accredited investors funding startup companies, are assumed to meet a Regulation D exemption for purchasing equity in private companies. In the long run, this usually works best for startup entrepreneurs.

Early Stage 79

Early Stage Accredited Investor SEC Private Placement 79

The Equity Kicker

DECEMBER 30, 2013

In this case the investment is largely in the form of time committed to the startup, and hence the downside is the time lost to other opportunities. 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).

Finance 129

Finance Liquidation Preference Valuation Harvest 129

dondodge.typepad.com

JANUARY 15, 2011

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. This puts potential payout into perspective for those thinking about founding or working for a startup. Most startups fail. it Founder conundrum. Except they can't!

Equity 40

Equity Employee Dilution Valuation 40

Up and Running

MARCH 29, 2017

million for the SaaS startup I founded because sometimes we see success coming out of the blue, when really that person benefited from a broad network of support. Once I understood that principle, I knew that moving forward with my own business instead of going back to Google full-time was the right thing.

Term Sheet 60

Term Sheet Venture Capital Liquidation Preference Valuation 60