VC Adventure

AUGUST 15, 2018

Most boards did some level of work to determine the FMV of a company’s stock but generally options were priced between 10% and 15% of a company’s then preferred price (because common equity sits behind preferred equity there is typically a discount applied to the FMV of common stock to account for this “overhang”).

Valuation 48

Valuation Common Stock Cap Table Software Review 48

David Teten

SEPTEMBER 2, 2017

It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. These are many of the steps I went through when I joined HOF Capital. Also see Preqin’s Key Due Diligence Considerations for Private Equity Investors. . So assessing fit is critical.

Private Equity 60

Private Equity Venture Capital Equity Partner 60

YoungUpstarts

APRIL 11, 2018

However, you can always strategically place family members in roles that you feel they are qualified for, and give them equity shares based on their roles so they also feel valued. If your small business is family run, you might have to divide the company into equity shares to be dispersed to each working family member. Reason No.

Small Business 160

Small Business Equity Denver Capital Gains 160

Feld Thoughts

MAY 9, 2011

Make it simple – eliminate capital gains if an individual (who is an accredited investor) invests equity (i.e. risk of 100% loss of investment) in a private company with less than 100 employees.

Government 143

Government Technical Review Intellectual Property Accredited Investor 143

The Startup Magazine

JUNE 23, 2021

Furthermore, the equity on the building will grow with every mortgage payment you make. Of course, when you get a business mortgage, you are also making a significant capital gain. Over time, property prices always eventually rise, so purchasing premises can be a great way of realizing capital growth in the long term.

Capital Gains 105

Capital Gains Equity Finance Cost 105

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 7 Salary vs Equity. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. Salary vs Equity. From Payne.org Wiki. 2 Stock Classes: Common and Preferred.

Equity 56

Equity Employee Vesting Preferred Stock 56

The Equity Kicker

NOVEMBER 7, 2012

reduce capital gains tax for assets held for a long period. give capital gains tax breaks to entrepreneurs. Support the venture capital system with direct investmemt into funds. Allow startups employees to trade employment protection for equity. the sort that develop empowering innovations).

Capital Gains 123

Capital Gains Government Venture Capital Equity 123

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. What is Company Equity? Types of equity. Common stock. The selection of Senior Officers.

Valuation 108

Valuation Equity Warrant Common Stock 108

Startup Professionals Musings

SEPTEMBER 10, 2013

A few, like Silicon Valley Bank (SVB), actually do provide management services to startups, invest in startups, or provide early-stage venture capital, but that is not called an investment service and is part of a function called Emerging Technologies, or sometimes Private Equity.

IPO 205

IPO Silicon Valley Private Equity Initial Public Offering 205

K9 Ventures

MARCH 23, 2011

I may be well be in the minority in the Valley to think this way — especially so as a seed stage investor — but I have a strong preference for doing priced equity rounds for funding companies at any stage. It is in essence equivalent to being a Liquidation Preference that is typically seen in a preferred equity financing.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

www.seriesseed.com

DECEMBER 9, 2012

.  That’s because there are not that many issues to negotiate in a simple equity financing.   Based on the comments received, both on the blog and in the many deals in which these documents have been used, I am convinced that the terms of a simple set of equity documents are really not an issue. 

Term Sheet 40

Term Sheet Ratchet Dilution Equity 40

Gust

SEPTEMBER 5, 2012

Convertible equity? The new form of convertible security or “convertible equity” is essentially a convertible note containing most of the usual terms — except it’s been stripped of the features that would make it a loan. How to finance a new seed-stage startup? Convertible debt?

Finance 134

Finance Convertible Security Equity Seed Stage 134

Startup Professionals Musings

JANUARY 22, 2011

A few, like Silicon Valley Bank (SVB), actually do provide management services to startups, invest in startups, or provide early-stage venture capital, but that is not called an investment service and is part of a function called Emerging Technologies, or sometimes Private Equity.

Silicon Valley 211

Silicon Valley Private Equity Initial Public Offering Startup 211

Growthink Blog

FEBRUARY 4, 2013

And to top it all off, how about governmental policy and tone that if not outright hostile to the plight of the equity investor, is at its best supremely indifferent to it? Yes, it is enough to cause despair in those that still believe that well-functioning equity markets are at the heart of a vibrant and growing economy.

Stock 75

Stock Los Angeles Equity Capital Gains 75

www.seriesseed.com

DECEMBER 9, 2012

We went with equity because ivestors would prefer to get equity for the following reasons: 1. Long term capital gains possible for early exit. One of the reasons notes have become so popular is that the equity documents were too expensive. Good idea, I think this will benefit lots of startups and some angels.

Finance 40

Finance Term Sheet Vesting LLC 40

This is going to be BIG.

APRIL 4, 2021

They make money off of equity and stock option gains, as well as investment partnership interests that are taxed at lower capital gains rates. First off, taxes are but one aspect of cost—especially when income taxes aren’t affecting wealthy New Yorkers as much as their advocates would have you believe.

New York City 74

New York City Wyoming New York Florida 74

Growthink Blog

JUNE 18, 2014

And when asset values go up, when purchase and sales transactions occur that result in huge capital gains, when people are working and earning good wages, Tax Receipts increase too. Real Estate, the Stock Market, Technology and Private Equity, Jobs, the Deficit, and more. And, in turn, the National Credit Rating improves.

Accredited Investor 78

Accredited Investor Private Equity United States Valuation 78

Startup Company Lawyer

JULY 20, 2009

If there is more than one founder, the likelihood of an argument about how the equity should be split in the new company increases dramatically. Incorporating a company and issuing stock to the founders will help prevent misunderstandings among the founders about equity splits. Launching a service/product and general liability issues.

IP 67

IP Stock Options Preferred Stock Capital Gains 67

Bryce Dot VC

APRIL 20, 2015

Independent businesses should provide equity or equity-like profit sharing to all employees that should be reported in percentage of company/profits vs. number of shares. A few thoughts: Independent businesses are majority owned by their Founders. Founders should maintain full voting control of their board of directors.

Equity 40

Equity Capital Gains Bootstrapping Distribution 40

Startup Professionals Musings

JANUARY 31, 2010

A few, like Silicon Valley Bank (SVB), actually do provide management services to startups, invest in startups, or provide early-stage venture capital, but that is not called an investment service and is part of a function called Emerging Technologies, or sometimes Private Equity.

Silicon Valley 120

Silicon Valley Private Equity Startup Initial Public Offering 120

Scott Edward Walker

DECEMBER 14, 2015

Moreover, it will be very difficult to raise money from investors if a departed co-founder holds a substantial percentage of the company’s equity. Instead, the founder buys all of his stock on day 1 (subject to the vesting schedule) and then solely pays capital gains tax upon its sale. What Is the Typical Vesting Schedule?

Vesting 40

Vesting Founder Stock Cofounder 40

K9 Ventures

OCTOBER 10, 2017

Eventually, that vacuum was filled with capital gained even earlier than the Seed round — i.e., “pre-seed.”. Unless every aspect of product development is covered by founders who are only receiving equity, there are other parts of building a product that will require hiring highly qualified people.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

The Equity Kicker

JANUARY 13, 2016

The major differences between the consumption and income measures come from realised capital gains, dramatic increases in public and private benefits (e.g. health insurance and food stamps), the reduction in middle class taxes or the impact of retirement savings.

Capital Gains 60

Capital Gains Product Startup 60

Ben's Blog

APRIL 7, 2021

Corporate incentives: Fairchild Semiconductor in 1957 developed a broad-based equity incentive compensation program known as stock options. Over time, the concept of broad-based equity ownership has become characteristic of most tech companies and embedded in Silicon Valley startup culture very early on. Venture capital.

Silicon Valley 36

Silicon Valley Non-Compete San Francisco Government 36

Scott Edward Walker

APRIL 9, 2012

Part 3 will cover certain special issues, such as (i) what happens if the startup is acquired prior to the note’s conversion to equity? (ii) ii) what happens if the maturity date is reached prior to the note’s conversion to equity? A convertible note is short-term debt that converts into equity. What is a Convertible Note?

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

The Equity Kicker

NOVEMBER 6, 2012

Christensen suggests that capital gains tax should decline with the length of time an asset is held (we used to have that in the UK), and tax incentives to invest in longer term riskier assets are also a good idea (like the EIS scheme here in the UK).

.Net 102

.Net Capital Gains New York Distribution 102

K9 Ventures

NOVEMBER 21, 2011

The downside is that while the purchase of the Common Stock results in capital gains, the payment of the bonus, results in taxable income for the founder. In this situation, since the founders own some portion of their equity in Preferred Stock, the issue of the Common Stock pricing doesn’t occur.

Founder 87

Founder Common Stock Preferred Stock Stock 87

K9 Ventures

NOVEMBER 21, 2011

The downside is that while the purchase of the Common Stock results in capital gains, the payment of the bonus, results in taxable income for the founder. In this situation, since the founders own some portion of their equity in Preferred Stock, the issue of the Common Stock pricing doesn’t occur.

Founder 84

Founder Common Stock Preferred Stock Stock 84

BeyondVC

JUNE 29, 2005

Every year the Dow Jones Private Equity Analyst puts together a show where fund managers can listen to what the LP community is interested in and where they plan on allocating their dollars. At the end of the day, VCs are in the capital gains business.

LP 60

LP Private Equity Due Diligence Venture Capital 60

www.seriesseed.com

MARCH 2, 2010

.  That’s because there are not that many issues to negotiate in a simple equity financing.   Based on the comments received, both on the blog and in the many deals in which these documents have been used, I am convinced that the terms of a simple set of equity documents are really not an issue. 

Finance 58

Finance Term Sheet Equity Aggregator 58

YoungUpstarts

JANUARY 20, 2020

Anyone who’s watched “Shark Tank” recognizes the challenges inherent to negotiating equity terms. I’ve used owner financing to buy single and multiunit real estate quickly and with great results — and my sellers like avoiding capital gains taxes and recouping more money over time. How does owner financing work?

Indiana 165

Indiana Startup Bootstrapping Finance 165

David Teten

AUGUST 20, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching Revenue-Based Investing and other new approaches to VC. The question I’m asking myself: should a new VC fund use Revenue-Based Investing, traditional equity VC, or possibly both (likely from two separate pools of capital)? Antifragile, countercyclical model.

Revenue 60

Revenue SBIC Cofounder Venture Capital 60

The Next Web

JULY 21, 2013

An exit does not only mean to sell your company, it is also the sign hanging on top of the door through which your partners can walk away with your equity. This means that if you had 50% equity and leave after two years you will only retain 25%. This is why vesting is so important. Investing in vesting. An example.

Vesting 143

Vesting Founder Chile Equity 143

Austin Startup

FEBRUARY 3, 2019

If you can really help the company, offer to serve on their Advisory Board for common equity in addition to your preferred equity investment. For the hit companies in your portfolio, you’ll make money on both the preferred and common equity this way. they are doing the real work every day).

Angel Investor 48

Angel Investor Advisory Board Equity B2C 48

techcrunch.com

SEPTEMBER 2, 2012

Convertible Equity, A Better Alternative To Convertible Debt? As a refresher, a convertible note is a loan that automatically converts into equity upon the closing of a Series A round of financing. In the end, Ressi says that Convertible Equity allows startups and investors to have their cake and eat it too. Smartphones.

Equity 87

Equity San Francisco Technical Review Angel Investor 87

Up and Running

APRIL 29, 2014

That’s a little more complicated, because there can be dividends, interest or capital gains, and there’s different tax rates for those. Individual income tax, payroll tax—that’s the same thing as self employment tax—capital gains tax, and then this new one for this year, or not this year, but last year, 2013.

.Net 85

.Net Capital Gains Distribution Puerto Rico 85