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Three Startup Financing Myths You Should Avoid

YoungUpstarts

Here are three pieces of advice that are tossed around Silicon Valley as if they are gospel, but they are really Startup Myths. I don’t know exactly when it happened but at some point, Silicon Valley became obsessed with the word billion. The real key is to have an entrepreneur that is obsessed with a small market.

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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

Interesting to note that Hafner and English own common stock but also made meaningful investments in the Series A & B rounds. Notes: In an IPO preferred share classes are converted into common stock, and liquidation preferences and accumulated but unpaid dividends essentially go away. as of 12/31/09). Author howerl.

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Building a new startup hub

Startup Lessons Learned

Its easy to take Silicon Valley for granted. But theres no denying the level of support for entrepreneurs that we enjoy. Ive written a little bit about the origins of Silicon Valley because I think its important for us to understand how we got here in order to make sure we preserve what is best about our community.

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How to Fund Your Startup Without Losing Control

Up and Running

For a business that anticipates needing, for example, $500,000 in startup capital, that means that best-case scenario Klemm can expect to give up half of his business’s common stock (and an even larger percentage of control of the business once the deal’s fine print provisions are considered). Consequently, he passed.

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Should You Offer Equity Compensation to Employees?

Up and Running

Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. If you’re in Silicon Valley and/or building any kind of tech startup, it’s considered the norm to offer equity as part of a compensation package.”.

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SAFEs v. Convertible Notes, updated.

Austin Startup

Because by an order of magnitude Silicon Valley has the most startups, VCs, large exits, etc., the majority of the content available online for founders to educate themselves comes from Silicon Valley. Apart from YC itself, Silicon Valley already is an aberration among startup ecosystems. Context matters.

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The Corrosive Downside of Acquihires

Both Sides of the Table

A couple of tech giants throw millions around in either cash (for which they have hoards) or part with some publicly traded stock. And a few teams of super talented, educated and bright entrepreneurs make a few mill. I look for entrepreneurs who set out on their journeys to do exactly that – build big businesses.