article thumbnail

How to split startup equity between startup founders when starting a new business

The Startup Magazine

nominal versus market price), this is seen as quick revenue. However, the difference between the market and strike prices at the moment of conversion is likely taxable income. However, the difference between the market and strike prices at the moment of conversion is likely taxable income.

Equity 142
article thumbnail

Should your new VC fund use Revenue-Based Investing?

David Teten

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)? When It’s a Venture Capital Mark ”.

Revenue 60
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Venture Capital Q&A Session

Both Sides of the Table

The A round was done in February 2000 (end of the bull market) and my B round was done in April 2001 (bear market). In fact, far better if you haven’t raised venture capital. The longer you wait the higher the price they’ll have to pay and the less time the clock will be ticking on long-term capital gains tax.

article thumbnail

Playing the Long Game in Venture Capital

Both Sides of the Table

It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales. The Valley has obsessed with a quick up-and-to-right momentum story because we were thought to live in “winner take most” markets.

article thumbnail

How Startup Valuations are Driving Company Equity

ReadWriteStart

This article will assist you in gaining a fundamental understanding of equity valuation, kinds of equity, and other related topics. The market regards equity as an ownership “share” in a corporation’s income revenue stream. Equities are market-linked investments that do not guarantee a fixed rate of return.

Valuation 108
article thumbnail

A Venture Capital History Perspective From Jack Tankersley

Feld Thoughts

The key reason for the explosion in capital flowing into the industry, and therefore the large increase in practitioners, had nothing to do with 1970’s performance, early stage investing, or technology. Instead, the driver was the 1983 bull market. Was this a function of “too much money chasing too few deals” as many pundits claimed?

article thumbnail

The Tax Advantages To Investing In Oil And Gas Your CPA’s Probably Never Heard Of

YoungUpstarts

Thanks to the considerable tax write-offs available for intangible drilling costs (IDCs) and tangible drilling costs (TDCs), oil and gas investing can drastically lower your tax bill — even when compared to investing in the more traditional stock or real estate markets. How’s that? First, let’s tackle the terminology.

CPA 100