Common Stock, Partner and Silicon Valley

Who Should be on Your Startup Board?

Both Sides of the Table

FEBRUARY 20, 2019

If angel investors are pressuring you to set up a board and if you don’t have the leverage to push back a little then I might suggest a 3-person board in which all 3 seats are appointed by the common stock and you agree to appoint one of these seats to the angel investor but perhaps make it either time based or event based.

Venture Capital

Venture Capital Startup Angel Investor Silicon Valley

Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

APRIL 17, 2011

Interesting to note that Hafner and English own common stock but also made meaningful investments in the Series A & B rounds. Led by Oak Investment Partners with participation by General Catalyst, Sequoia, & Accel and others. Im a former Silicon Valley entrepreneur turned East Coast VC. Author howerl.

Pre-Money Valuation

Pre-Money Valuation Liquidation Preference Dividend Common Stock

Three Startup Financing Myths You Should Avoid

YoungUpstarts

JUNE 26, 2020

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. He is also a venture partner at several VC firms. I was wrong.

Finance

Finance Silicon Valley Valuation Startup

Building a new startup hub

Startup Lessons Learned

AUGUST 26, 2009

Its easy to take Silicon Valley for granted. 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. But theres no denying the level of support for entrepreneurs that we enjoy.

San Francisco

San Francisco Silicon Valley Startup Lean

In defence of liquidation preferences

The Equity Kicker

NOVEMBER 9, 2016

I just read a New York Times article that led with the sentence “Deep inside a Silicon Valley unicorn lurks a time bomb”. Additionally, they introduce a small amount of complexity and an element of misalignment between the investor and the common stock holder (usually the founder).

Liquidation Preference

Liquidation Preference Silicon Valley Participating Preferred Common Stock

Should You Offer Equity Compensation to Employees?

Up and Running

DECEMBER 1, 2015

If you’re giving a large percentage of your company to someone (and yes, two percent is large), you’re entering into a contract that’s really a whole lot like marriage in that it creates a long-term relationship between you and the employee or partner. Make sure you understand all of your options before making any decisions.

Equity

Equity Employee Stock Options Vesting

Equity for Consultants – Keep it Simple!

www.mattbartus.com

SEPTEMBER 24, 2011

A View from the Valley. Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. First, you’d probably want them to receive common stock, not preferred stock (which is the likely next round). Blog blog archive. Quora Answers. About Matt.

Equity

Equity Vesting Silicon Valley Intellectual Property

8 Hard-Earned Insights Into Raising Startup Capital

ReadWriteStart

MAY 8, 2012

When you take an investment, you are taking on a partner, so you need to make sure they add value beyond mere dollars. Take into consideration board seats, the investor’s equity stake in the business and whether they will receive preferred or common stock. Choose your investors carefully. When we raised our $1.3

Cofounder

Cofounder Startup San Francisco Silicon Valley

Pari Passu or F.U.little guy

Professor VC

JULY 25, 2013

It is the story of the founding of the venture capital industry in Silicon Valley and features many of the iconic companies created including Apple, Intel, Genentech and Cisco. Well, those 3 weeks came and went, and they decided they weren''t sure about the market and needed to get other partners in the firm on board.

Term Sheet

Term Sheet Silicon Valley Syndicate Syndication

It might not be a bubble but sure as hell the rent is too damn high!

Professor VC

MARCH 12, 2015

The above was the opening salvo of a controversial tweetstorm yesterday by my former student and 500 Startups founding partner, Dave McClure (full venom below). As with all M&A exits, there was a round of congratulatory messages to the founder in the Silicon Valley echo chamber. The event is free and open to the public.

Syndicate

Syndicate Syndication Silicon Valley Common Stock

Raising Capital? 3 Tips for Entrepreneurs – Part 2

Scott Edward Walker

SEPTEMBER 21, 2011

David Hornik , a partner at August Capital and a very smart investor, confirms this approach in his interview on Sprouter : So if you are new to the area or to entrepreneurship, how do you get the right. What about issuing shares of common stock? the pricing) until the Series A round. a set value at which the notes convert).

Preferred Stock

Preferred Stock Angel Investor Entrepreneur Common Stock

Facebook S-1: The Most Anticipated IPO in a Decade ? AGILEVC

Agile VC

FEBRUARY 2, 2012

My partner Rob also wondered if Facebook is the next Yahoo! , These companies report gross ad revenue but then subtract out “TAC” (Traffic Acquisition Costs) which is basically accounting-speak for the revenue share they pay to the partner sites where the ads actually appear. or the next Google. Read More ».

IPO

IPO South Korea Venezuela Revenue

VC Governance FAQ: (2) Especially now, when transparency is so important, why is limited financial information available from a private company?

Pascal's View

MARCH 9, 2010

Answer: Actually there is plenty of financial information available from private companies, but that does not mean that it is available to institutional investors as passive investors who are Limited Partners in venture capital or other private equity partnerships.

Government

Government Private Equity Institutional Investors Venture Capital

The Option Pool Shuffle

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! Reply # Anonymous · Jul 17, 2008 Hi, I was wondering if the posted ranges for option grants in Silicon Valley are still current and how/where did you get them?

Option Pool

Option Pool Pre-Money Valuation Dilution Warrant

StartUpRoar