Berkonomics

JANUARY 6, 2022

A rather common but small dividend rate of six percent becomes a massive amount after seven years, almost half again the value of the original investment. Sometimes it takes a court case to unravel onerous terms. Here’s an example that will make your heart skip a beat.

Dividend 62

Dividend IRR Preferred Stock Participating Preferred 62

www.mattbartus.com

SEPTEMBER 24, 2011

At the very least, shoot them an email thanking them for their services and confirming that the agreement is terminated (but make sure you comply with the termination provisions of the consulting agreement). Share this: Facebook Email Reddit StumbleUpon. Send to Email Address. Your Email Address. link] mattbartus.

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40

Berkonomics

JULY 23, 2020

Is there a liquidation preference in place where the preferred investors can take a multiple of their investment, (twice or three times the amount) from a sale before the common shares receive anything? Conflicts of interest with preferred investors.

Delaware 62

Delaware Liquidation Preference Preferred Stock Early Stage 62

Startup Lessons Learned

AUGUST 26, 2009

They take common stock, not preferred, a fact that the entrepreneurs mentioned to me many times. Get in touch: Twitter Email Facebook Linkedin Additional resources Startup LessonsLearned, All Seasons : Every post from the blog, in one 600+ page PDF. Want to learn more about me? Try About the author.

San Francisco 113

San Francisco Silicon Valley Startup Continuous Deployment 113

keen.io

FEBRUARY 5, 2013

The next Monday, I received the following email from Kyle. Kyle sent a similar email to Micah that morning, and I crossed paths with Micah as he was leaving the meeting I was about to walk into. The next day, a Saturday, I sent the founders this email, including my analysis spreadsheet as an attachment. Email the team.

Salary 50

Salary Equity Startup San Francisco 50

Berkonomics

APRIL 4, 2019

Shareholders may vote on other issues during the year by written consent, including acquisitions, stock issuance, changes to the articles of incorporation and bylaws, and more. Email readers, continue here…] Prepare for your annual meetings well. But don’t worry. Few investors will show up that day.

Stock Options 48

Stock Options Balance Sheet Stock Common Stock 48

Eric Friedman

JUNE 27, 2016

I have been sharing the below with folks via email and privately, but realized I should do so publicly**. A little bit of background first on options: In order to issue options, your company must have a valid 409A valuation setting the fair market value (“FMV”) of a share of common stock. So why would you do this?

Equity 98

Equity Vesting Cap Table Common Stock 98

Berkonomics

MAY 22, 2014

Email readers, continue here.] If I don’t like the terms offered in the PPM, why don’t I insist that the terms be changed to accommodate my partialities as an angel investor? I have yet to read a PPM written for a startup company that meets the parameters we angels generally establish for funding new ventures. Sounds simple, huh?

Early Stage 79

Early Stage Accredited Investor SEC Private Placement 79

YoungUpstarts

JUNE 23, 2015

Do you have common stock (or membership units)? If preferred, what are the differences between common and preferred? For God’s sake, don’t invest based on a phone call, or worse, an email. Pick up the phone and have a conversation. Here are a few questions to get you started: How do you know the promoter?

Private Equity 100

Private Equity Common Stock Equity Reputation 100

Berkonomics

APRIL 14, 2012

Email readers, continue here.] These include election or re-election of board members if required by the bylaws of the corporation, approval of any increases to stock option plans (which would dilute the worth of shares outstanding), and approve any additions to the capital stock authorized to be issued.

Stock Options 81

Stock Options Balance Sheet Stock Common Stock 81

Duct Tape Marketing

JUNE 5, 2018

It’s common for people to visit your website numerous times before deciding to work with you. To ensure you stay top of mind, put enticing forms and CTAs in place (that link to valuable resources) to get their email address and continue to create valuable content that is relevant to their stage in the customer journey.

Kansas City 76

Kansas City Kansas Audience Differentiation 76

Berkonomics

OCTOBER 1, 2015

And some preferred investors have participation rights, where they take all of the above amounts, and then also convert their shares into common stock and participate again alongside the founders and option holders.

Dividend 48

Dividend Preferred Stock IRR Participating Preferred 48

Berkonomics

OCTOBER 26, 2010

The option price should be set by appraisal under IRS rule 409a, and certainly should be low enough to recognize that common stock options are not worth as much as preferred stock, given the many preferences of the latter. Email readers continue here.]

Stock Options 66

Stock Options Early Stage Stock Vesting 66

Berkonomics

AUGUST 29, 2013

Is there a liquidation preference in place where the preferred investors can take a multiple of their investment, (twice or three times the amount) from a sale before the common shares receive anything?

Delaware 66

Delaware Liquidation Preference Liquidity Event Preferred Stock 66

ReadWriteStart

MAY 8, 2012

Instead, we reached out to investors over a six-month period and kept them updated over email - without asking for in-person meetings before we were ready to raise. Take into consideration board seats, the investor’s equity stake in the business and whether they will receive preferred or common stock.

Cofounder 140

Cofounder Startup San Francisco Silicon Valley 140

Scott Edward Walker

SEPTEMBER 21, 2011

They then must work hard to get an introductory phone call or email from a middleman whom the investor trusts and respects (ideally, another entrepreneur whom that investor has backed). What about issuing shares of common stock? This is how the game is played. How is this done? By banging on doors.

Preferred Stock 45

Preferred Stock Angel Investor Entrepreneur Common Stock 45

Berkonomics

JULY 10, 2010

Email readers continue here.] For this, an advisory board member for a small to medium sized company should expect to receive options equal to ¼% of the fully diluted stock of the company, vesting over two years, and subsequent grants of the same size if renewed in subsequent two year intervals.

Advisory Board 63

Advisory Board Stock Options Stock Common Stock 63

Tim Keane

JANUARY 12, 2010

Signup for email updates. Enter your Email. Seen from a 35,000-foot vantage point, term-sheets and valuations are a method of assessing risk and making mutual promises about assuming various risk components.   In my experience, overpayment is most often the second case rather than the first.   Search. April 2013.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Tim Keane

APRIL 12, 2006

Common stock is a vehicle for sharing risk equally with insiders who have more knowledge and ability to affect business results. Fewer investors will take common stock in early stage transactions. Fewer investors will take common stock in early stage transactions. Signup for email updates. April 2013.

Entrepreneur 60

Entrepreneur Valuation Sweat Equity Common Stock 60

thestartuplawyer.com

FEBRUARY 24, 2010

Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM He obviously never launched a startup and got shafted by a co-founder. Leave a Reply Click here to cancel reply.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

blog.simeonov.com

FEBRUARY 22, 2010

An email would do. For her services, the consultant will own common stock equal to $50K/$2M or 2.5% Lawyers tell me that in many cases verbal agreements are enforceable, especially if someone did work based on the verbal agreement. It helps to communicate and set expectations clearly.

Founder 44

Founder Vesting Agile Startup 44

Professor VC

FEBRUARY 18, 2011

He obviously has a founders common stock stake along with cash invested. Email This BlogThis! Seemed like a good time for ProfessorVC to do a little digging to see if there was more than met the eye. Steve Bennet. at 1:20 PM. Share to Twitter Share to Facebook. Labels: LinkedIn , M and A , seed investing.

Acquisition 31

Acquisition San Jose Angel Investor IPO 31

venturehacks.com

MARCH 21, 2008

If you have more questions, email us at ask@venturehacks.com. Advisor compensation Whether you’re hiring a normal advisor or super advisor: Advisory shares are usually issued as common stock options. Advisory shares are normal common stock. See Part 1 for the rest. Should I put together a board of advisors?

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

www.paulgraham.com

APRIL 28, 2010

Just go to their website and send them an email. Some VCsnow require that in any sale they get 4x their investment backbefore the common stock holders (that is, you) get anything, butthis is an abuse that should be resisted. Theres only common stock at this stage.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Professor VC

MARCH 12, 2015

The board decided not to use an external valuation of Twilio''s common stock that had been done the month prior to the acquisition, but instead come up with their own valuation methodology. In fact, I have been on the platform since it''s early days as a daily email sharing interesting angel opportunities.

Syndicate 28

Syndicate Syndication Silicon Valley Common Stock 28

venturehacks.com

OCTOBER 21, 2010

This reverse dilution benefits all classes of stock proportionally even though the common stock holders paid for all of the initial dilution in the first place! post response here or email me at johngalt@jubii.co.uk. Third, if you sell the company before the Series B, all un-issued and un-vested options will be cancelled.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

ReadWriteStart

FEBRUARY 13, 2020

The well-known ridesharing giant hit the market this year with a target price of $45 dollars per share, with 180 million shares of common stock available at launch. The company pinned the blame for the breach of the Democratic National Committee’s (DNC) email servers during the 2016 election on the Russian government.

IPO 147

IPO Startup Stock Initial Public Offering 147