Both Sides of the Table

MAY 24, 2021

All have been able to take some secondary stock sales along the way, all remain shareholders of the company and all benefit from late-stage capital provided by Accel, Morgan Stanley, HIG Capital ( Scott Hilleboe ) and others. Interim liquidity plus long-term capital gains work really, really well.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

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. The post How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm appeared first on David Teten.

Private Equity 60

Private Equity Venture Capital Equity Partner 60

VC Adventure

AUGUST 15, 2018

Back in the olden days of venture capital, company boards had wide discretion in pricing company options. Quick note: I’m not your lawyer. I’m not giving legal advice in this post.

Valuation 48

Valuation Common Stock Cap Table Software Review 48

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

Steve Blank

APRIL 11, 2018

tax rate for individuals making over $100,000 was 70% and 90% (taxes on capital gains fluctuated between 20% and 25%.) Venture capital flourished when the tax rates plummeted in the late 1970s. Yet other public policies come into play. Between the late 1930s and the 1970s the U.S.

Entrepreneur 336

Entrepreneur Business Model Capital Gains Aggregator 336

David Teten

AUGUST 20, 2019

Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? When It’s a Venture Capital Mark ”. John Borchers, Co-Founder of Decathlon Capital, observed, “If you look at the Inc. Taxable as ordinary income , unlike traditional VC which is normally taxed as long-term capital gains.

Revenue 60

Revenue SBIC Cofounder Venture Capital 60

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. the sort that develop empowering innovations).

Capital Gains 123

Capital Gains Government Venture Capital Equity 123

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

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

Growthink Blog

APRIL 19, 2011

Even though Chris and Chris only owned a small percentage of Radian6 after raising rounds of venture capital, they will still walk away with $14 million each according to CBC News. Which is that you only need to pay capital gains taxes which are only one-third the amount of taxes you pay on ordinary income.

Cofounder 97

Cofounder Capital Gains Venture Capital Salary 97

Both Sides of the Table

NOVEMBER 4, 2009

If you never raise another round of venture capital (a big if) and if your company is sold for the normal venture exit ($50 million on average for 200 or so annually that get sold) then what is your stake? And let’s say that it took 4 years to exit – that’s $31,250 / year.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Growthink Blog

MARCH 30, 2011

The company had raised several rounds of venture capital before selling to Amazon, so let's assume that the founders were diluted substantially and each only owned 10% of the company at the time of the sale. But then, they'll have to pay 15% capital gains on that $50 million, so they'll each only walk away with $42.5

Salary 93

Salary Acquisition Dilution Capital Gains 93

The Startup Magazine

OCTOBER 3, 2019

Another key strength that lies in securities-backed loans is avoiding taxes applicable to capital gains. Even if the stock’s price, falls you may walk away without damaging your credit rating. These loans are therefore free of personal liability. There are no tax penalties applicable to selling securities in this case.

Stock 75

Stock Angel Investor Startup SEC 75

Ben's Blog

APRIL 7, 2021

A similar pattern exists for venture capital funding: In 2020, just three regions — the Bay Area, New York, and Massachusetts — accounted for 70%+ of total venture funding in the U.S. Venture capital. Silicon Valley didn’t create venture capital, and venture capital didn’t create Silicon Valley.

Silicon Valley 36

Silicon Valley Non-Compete San Francisco Government 36

Cracking the Code

OCTOBER 12, 2012

This post is a translation of the article: « Pigeons » : le cri d'alarme d'un fonds américain published on LaTribune (12/10/2012) and is a response to the proposed tax law proposed by the government of Francois Hollande, suggesting to tax all capital gain at the same level than salaries or 60%. So why twelve years?

France 71

France Europe Capital Gains Dilution 71

K9 Ventures

OCTOBER 10, 2017

You see, Dan knows more about venture than most people; and if Dan isn’t aware that “pre-seed is a thing,” then I haven’t done a good enough job of explaining to the world what I and K9 do! Eventually, that vacuum was filled with capital gained even earlier than the Seed round — i.e., “pre-seed.”.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Scott Edward Walker

APRIL 9, 2012

Venture capital funds, seed funds, super angels, angel groups, incubators, and “friends and family” are all playing the seed financing game and investing early in startups in an attempt to land the next Facebook. Introduction We are in the golden age of seed financing.

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

Seeing Both Sides

MAY 31, 2010

But I cheated and peeked at my email late Saturday afternoon and discovered an email from a friend saying, "I'm surprised to see you take such a public stance on the capital gains tax rates," with a link to a New York Times article on the topic. I swore I would go offline for much of Memorial Day Weekend.

Carried Interest 35

Carried Interest New York Massachusetts Greece 35

www.seriesseed.com

MARCH 2, 2010

For this reason, startup companies are now raising significantly less capital – and many investors have begun to focus efforts on this smaller early stage investment – which typically ranges from $500,000 to $1.5

Finance 58

Finance Term Sheet Equity Aggregator 58

Seeing Both Sides

FEBRUARY 22, 2009

In it, he suggests a silly stimulus idea - "Call up the top 20 venture capital firms in America, which are short of cash today.and make them this offer: The US Treasury will give you each up to $1 billion to fund the best venture capital ideas that have come your way.". 3) Keep capital gains taxes low.

Venture Capital 20

Venture Capital Capital Gains Massachusetts IPO 20

BeyondVC

JULY 19, 2005

Robert Scoble has asked the VCs to respond to an eWeek article titled Is.Net Failing to Draw Venture Capital Loyalty? There is not much for me to add to this article as we all know that the only loyalty VCs have is to their Limited Partners to generate long-term capital gains.

.Net 60

.Net Java Limited Partner Venture Capital 60

Pascal's View

SEPTEMBER 1, 2008

I see short-term thinking clouding the judgment of financial institutions who have traditionally invested in venture capital. I see a Ghost Town in what used to be the vibrant public market for emerging growth companies with market caps of less than $1 billion in America. to stay in the U.S.

Silicon Valley 28

Silicon Valley America Venture Capital United States 28

BeyondVC

JUNE 29, 2005

I am not sure how many entrepreneurs understand the structure of venture capital funds but the bottom line is that while VCs manage funds, we ultimately report to our investors or Limited Partners (LPs). At the end of the day, VCs are in the capital gains business.

LP 60

LP Private Equity Due Diligence Venture Capital 60

Austin Startup

FEBRUARY 3, 2019

Note that if you hold your stock in a startup for at least five years before selling, you could have a very favorable capital gains exemption. This will ultimately help you build a network rapidly. I encourage you to get familiar with Section 1202 of the Internal Revenue Code.

Angel Investor 48

Angel Investor Advisory Board Equity B2C 48

Pascal's View

OCTOBER 28, 2008

 His specific position on eliminating capital gains taxes for start-ups supports long-term investing through innovation and venture capital. .  I also believe he is sincere in his desire to "do the right thing" for America.

United States 28

United States America Iran Iraq 28

Both Sides of the Table

AUGUST 30, 2010

And the tax changes for 2011 could cause a further end-of-year sell-off: Another factor often not discussed is that the capital gains tax increases coming into effect in 2011 are might just lead to a stock market sell-off in Q410 as investors “lock in” gains at a lower tax rate. In the end.

Entrepreneur 298

Entrepreneur Technical Review Balance Sheet Government 298

This is going to be BIG.

NOVEMBER 15, 2020

In a memo detailed on the company’s blog, Coinbase CEO Brian Armstrong moved his company towards an entirely “work-focused” apolitical stance , citing, as far as I can tell, management’s inability to empathize with anyone for whom government policy, save for capital gains tax, couldn’t be conveniently and easily ignored.

Cofounder 216

Cofounder Founder Employee Silicon Valley 216