David Teten
JANUARY 19, 2021
(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad.
David Teten
AUGUST 19, 2019
RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Key elements: . “We
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The Startup Magazine
AUGUST 11, 2017
Here at The Startup Magazine , we don’t typically “do” press releases, but occasionally an item comes to us that warrants including it in the magazine. Tianyi is also a co-founder of West Suburban Angels , a prominent angel investment group in the west suburbs of Chicago.
David Teten
OCTOBER 1, 2015
Should you co-found your company with a software development shop? I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. What are the terms of their relationship with the founder?
Gust
DECEMBER 8, 2011
Likewise, founders can benefit from understanding basic characteristics of the overall legal structure, formation and governance documents, rights and responsibilities of team members, etc. Stepping off the soapbox, let’s examine the highest level “To Do” list for a new startup: Formation, Governance and Equity. Newco, Inc.”)
Startup Company Lawyer
MARCH 14, 2010
Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). Co-sale rights. These rights are missing, which is probably okay since I have never heard of a co-sale right being used before. Voting agreement. Legal opinion.
ReadWriteStart
JANUARY 28, 2022
Other aspects of organizational governance. Warrants are a kind of equity that are often attached to a corporate bond issuance or preferred stock to make the transaction more appealing to investors. However, the holder of a warrant holds a leveraged bet on the corporation’s common shares. Equity for Co-founders.
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