YoungUpstarts

JUNE 26, 2020

by Rizwan Virk, author of “ Startup Myths and Models: What You Won’t Learn in Business School “. If you are building a startup, you’ll find no shortage of people who are willing to give you advice, particularly when it comes to raising financing. Unfortunately, much of this advice is wrong. Well not, wrong exactly.

Finance 205

Finance Silicon Valley Valuation Startup 205

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity. This applies if the investment converts into common stock; details are beyond this essay’s scope. of startups raise VC.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Steve Blank

APRIL 26, 2022

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. Some even insisted that all prior preferred stock had to be converted to common stock. You can do another startup again with your head held high.

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

Startup Lessons Learned

AUGUST 26, 2009

Lessons Learned by Eric Ries Wednesday, August 26, 2009 Building a new startup hub Last week, I had a unique opportunity to spend some time in Boulder at the behest of TechStars. It was a great experience to see a relatively new startup hub in action - and thriving. Their model looks like a key ingredient in the startup brew there.

San Francisco 113

San Francisco Silicon Valley Startup Continuous Deployment 113

Both Sides of the Table

MAY 27, 2013

In this period (less than 2 years) he has brought on incredibly talented senior execs is sales, marketing, product management, client services, finance, vp engineering and more. In addition to helping manage the board Chris also helps represent the interests of the angel investors / common stock holders. Startup Advice'

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

Agile VC

APRIL 17, 2011

AGILEVC My idle thoughts on tech startups. Kayak was started here in my backyard of Boston… co-founder & CTO Paul English and the product/engineering team is based here in Concord MA. 5) High Productivity: Kayak had 148 employees at the end of 2010. How to Evaluate Firms for a Seed VC. How To Think About The Future.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

ReadWriteStart

FEBRUARY 13, 2020

For most startups, it’s no secret that a significant part of their long-term plans is to go public and become the next market darling for investors. Here are three IPO lessons and what they hold for today’s startups. The obvious lesson here is to make sure that your startup’s financial house is in order.

IPO 147

IPO Startup Stock Initial Public Offering 147

www.paulgraham.com

APRIL 28, 2010

Want to start a startup? A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. Few startups get it quite right. 1 ] A startups life will be more complicated, legally, if any of theinvestors arent accredited.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Both Sides of the Table

JULY 22, 2010

The more senior members you have (say you already have a CEO, CTO, VP marketing, VP Biz Dev, VP Products) then the less options you’ll need and vice versa. Tags: Startup Advice This Week in Venture Capital. You’ll need to hire and retain talen to grow your company. Those options need to come from somewhere.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Startup Company Lawyer

APRIL 23, 2009

The driving beliefs behind the Institute are that (1) great founders are often overlooked by the current entrepreneurial ecosystem, and that (2) innovative startups have a dramatic positive effect on the global economy. The COI includes Class A common stock, which has one vote per share, and Class F common stock, which has 10 votes per share.

Common Stock 33

Common Stock Stock Dividend Delaware 33

Startup Professionals Musings

JUNE 9, 2010

Startups ask me “How much money should I ask for?” Angels might be interested during “early stage” if you have a prototype, but VCs won’t bite until you have a product, customers, and revenue. The most common case is an equity investment, but there are many terms that can impact what request size is credible. Marty Zwilling.

Valuation 227

Valuation Early Stage Warrant Common Stock 227

Startup Professionals Musings

OCTOBER 29, 2013

Startups ask me “How much money should I ask for?” Angels might be interested during “early stage” if you have a prototype, but VCs won’t bite until you have a product, customers, and revenue. The most common case is an equity investment, but there are many terms that can impact what request size is credible. Marty Zwilling.

Valuation 258

Valuation Early Stage Warrant Common Stock 258

Both Sides of the Table

MARCH 21, 2010

This is part of my ongoing series on Startup Advice. As startup entrepreneurs we all want to work with them because having their name as reference clients makes it so much easier for marketing, PR, selling to other customers, fund raising and even recruiting. BigCo calls you to review your product and decides they want to use you.

Warrant 298

Warrant Dilution Startup Stock Options 298

Up and Running

SEPTEMBER 20, 2021

Since almost all startups do not possess traditional debt lenders, the list usually consists of data of the shareholders and the percentage they own. Furthermore, there are various forms of equity, such as preferred stock, common stock, and convertible notes, which influence the present and potential future investors.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Up and Running

AUGUST 17, 2015

Between my experiences as a management consultant, as well as my product and marketing roles at multiple tech companies, I felt that I had enough operational experience to make that leap sooner than later. C Corp versus LLC, non-competes, liquidation preferences, preferred versus common stock, and so on).

Entrepreneur 60

Entrepreneur Cofounder Angel Investor eCommerce 60

Startup Professionals Musings

SEPTEMBER 19, 2012

Startups ask me “How much money should I ask for?” Angels might be interested during “early stage” if you have a prototype, but VCs won’t bite until you have a product, customers, and revenue. The most common case is an equity investment, but there are many terms that can impact what request size is credible.

Valuation 236

Valuation Early Stage Warrant Common Stock 236

ReadWriteStart

MAY 8, 2012

Approaching investors for the first time is a daunting exercise for any startup. The best way to do that is to leverage the hard-won experience of real-world startup. Turns out that while every startup is unique, they share some common difficulties in trying to find just the right strategies and tactics for funding their companies: 1.

Cofounder 140

Cofounder Startup San Francisco Silicon Valley 140

Version One Ventures

APRIL 6, 2021

2021 is proving to be an incredible year across our portfolio – from big funding announcements to significant product developments. The company expects its direct listing to occur on April 14, 2021 with its Class A common stock trading on the NASDAQ under the ticker symbol COIN. Product Launches and Updates. valuation.

Portfolio 60

Portfolio SEC Common Stock Angel Investor 60

Both Sides of the Table

MAY 13, 2013

For the past 5 years or so Google, Facebook and a handful of tech industry giants have been quietly buying scores of early-stage startups for their talent. A couple of tech giants throw millions around in either cash (for which they have hoards) or part with some publicly traded stock. Go do a startup. And who cares, right?

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

The Startup Magazine

JUNE 7, 2018

Just recently, WalletHub aimed to help aspiring entrepreneurs by comparing relative startup opportunities across over 180 cities in the U.S., Penny Stocks. If you aren’t all that savvy when it comes to investments, start with penny stocks.

Small Business 77

Small Business Jacksonville Stock Florida 77

Startup Professionals Musings

JULY 8, 2011

Startups ask me “How much money should I ask for?” Angels might be interested during “early stage” if you have a prototype, but VCs won’t bite until you have a product, customers, and revenue. The most common case is an equity investment, but there are many terms that can impact what request size is credible.

Entrepreneur 234

Entrepreneur Valuation Early Stage Warrant 234

Up and Running

DECEMBER 1, 2015

Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. It’s called restricted stock because it often comes with restrictions, such as vesting. See Also: 10 Tips for Dealing With Startup Stock Options.

Equity 60

Equity Employee Stock Options Vesting 60

www.inc.com

SEPTEMBER 24, 2011

Advisor. ); STARTUP. Graham also pushes for common stock, the right to participate in future funding rounds to preserve the size of the stake, and a guaranteed seat on the board. Be Connected & Productive Anywhere, Any Time. Entrepreneur news from reporter Eric Markowitz. Sales & Marketing | Wednesdays. Tools & Research.

Arizona 40

Arizona Equity Iowa Venture Capital 40

The Startup Lawyer

FEBRUARY 4, 2011

Great news — your startup just got accepted to an incubator! But before your startup signs up and cashes that $[XX,000] check, your startup’s co-founders should sit down and evaluate the incubator’s offer. Pre-money valuations startups receive from incubators are typically low…really low.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Growthink Blog

APRIL 7, 2010

FreshPlanet is not some ultra-unique product or company. It's just two successful entrepreneurs trying to improve on products in an established industry. The name "Series A" refers to the class of preferred stock that you sell to investors in return for their cash. I'm not wowed by any stretch by FreshPlanet.

Angel Investor 54

Angel Investor Preferred Stock Venture Capital Common Stock 54

venturehacks.com

MARCH 21, 2008

Venture Hacks Good advice for startups. Products Archives @venturehacks Books AngelList About RSS Everything you ever wanted to know about advisors, Part 2 by Nivi on February 27th, 2008 Here are more frequently asked questions about advisors. Advisory shares are normal common stock. Disclaimer: This is not legal advice.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

Startup Company Lawyer

MAY 4, 2009

The driving beliefs behind the Institute are that (1) great founders are often overlooked by the current entrepreneurial ecosystem, and that (2) innovative startups have a dramatic positive effect on the global economy. Description: What are the typical stages of the funding life cycle for different types of startup businesses?

Founder 28

Founder Warrant San Francisco Intellectual Property 28

Lightspeed Venture Partners

OCTOBER 1, 2012

The entrepreneur claimed that her patent was weak and as a result competitors had copied her product and were collectively doing $30-40M in sales. There is a lot of momentum in startups. The product retails for $39.95, wholesales for $19.95, and costs just $5 to make. Last year it did $3.9M When they work, they work fast.

Pre-Money Valuation 158

Pre-Money Valuation Valuation Participating Preferred Preferred Stock 158

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. He obviously never launched a startup and got shafted by a co-founder.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

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). It was a great product addressing a large market opportunity and was interested in seeing how the AngelList syndicate process worked.

Syndicate 28

Syndicate Syndication Silicon Valley Common Stock 28

Growthink Blog

MAY 10, 2012

Nevertheless, this is when you get the startup money to kickstart your business with the bare essentials needed to begin making and fulfilling your first sales. That is, you'll use the funding to build a product or service and prove that customers want to buy it. Series B is the round that follows series A in early stage financing.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Up and Running

NOVEMBER 23, 2010

I ‘m very impressed by Rand Fishkin’s A Cautionary Tale from the Startup World posted on his blog over the weekend. At its height, the company employed more than 130 people and their products reached customers in dozens of countries. Tags: failure startup stories Rand Fishkin. What happened?

Common Stock 63

Common Stock Stock Options Stock Cofounder 63

The Entrepreneurial Mind

MARCH 10, 2011

ownership in the Common Stock of the company. Program Content : "Lean Startup / Customer Development in practice. It is a very active - 'jump in and swim' approach to the startup process." It's not an exaggeration to say that Techstars may be the greatest organization for tech startup mentorship in the world.

Nashville 65

Nashville Tennessee PHP Ruby 65

Startup Company Lawyer

JULY 20, 2009

Founders of startup companies often wait to incorporate a company until they are confident that their concept is viable or fundable. Incorporating a company and issuing stock to the founders will help prevent misunderstandings among the founders about equity splits. Launching a service/product and general liability issues.

IP 67

IP Stock Options Preferred Stock Capital Gains 67

Tim Keane

APRIL 12, 2006

Startups and angels: Along the way to success. Are you able to explain why your product is a compelling purchase for the customer, and how the customer will make buying decisions? What is being replaced by this new product?) Fewer investors will take common stock in early stage transactions. » April 12, 2006.

Entrepreneur 60

Entrepreneur Valuation Sweat Equity Common Stock 60

K9 Ventures

OCTOBER 19, 2015

So move on, recruit awesome people, build product, make your customers happy by delivering value to them and build your company by making them pay you for it. I like to focus on ideas, people, products. Really, that’s all you need to know. It’s not my thing. These investors are often looking for non-venture returns.

Venture Capital 48

Venture Capital Liquidation Preference Valuation Portfolio 48

Gust

AUGUST 6, 2014

As such, this could cover many different things, such as: Your parents loaning you money to cover your expenses while you code your product. 25 individual angel investors funding a startup on a convertible note. two angel groups investing money in Series Seed Preferred stock purchase. So what does usually happen?

Term Sheet 170

Term Sheet Lead Investor Preferred Stock Common Stock 170