Techstars Equity Back Guarantee

Feld Thoughts

Today Techstars announced an “ equity back guarantee ” for any company that goes through the Techstars program starting in 2015. So we decided to launch an equity back guarantee. The post Techstars Equity Back Guarantee appeared first on Feld Thoughts.

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5 Criteria For Splitting Equity In Your New Venture

Startup Professionals Musings

So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone.

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What Some Are Using Home Equity Loan/HELOC Proceeds For

YoungUpstarts

Home equity loans and HELOCs provide a faster financing opportunity for consumers. A spouse or child of an individual who needs assisted living services uses the equity built-up into the home to cover the costs. The reason is that by using their own money to pay for the costs, the nursing home doesn’t have the right to seize assets for payments. Homeowners calculate the full cost of renovations and repairs before approaching a lender.

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7 Equity Crowdfunding Risks Feared By Many Investors

Startup Professionals Musings

Crowdfunding may look easy, via popular sites like Kickstarter and Indiegogo, but their cost in time, effort, and money by entrepreneurs is daunting. In fact, there are many types of crowdfunding, including donations, reward, pre-orders, loans, and equity.

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Government Grants Cost No Equity, But are Not Free

Startup Professionals Musings

A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. But before you conclude that your funding problems are solved with grants, you should consider the direct and indirect costs of grant funding: Grant applications are bureaucratic.

Startups Should Be Responsible for Explaining Equity to New Employees

View from Seed

When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. Uncategorized equity VC

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Get the Most Startup Funding Using Your Home Equity

The Startup Magazine

Bootstrapping your startup often means you scrape together your cash, and often tapping your home equity value. It’s the location, height, view, lights and various other factors that go in to determine the home equity value of any private place.

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10 Strategies To Cover New Product Development Costs

Startup Professionals Musings

My first advice for new entrepreneurs is to pick a domain that doesn’t have the sky-high up-front development costs, like online web sites and smart phone apps. Nevertheless, it’s an option that doesn’t cost you equity. development costs new venture research valley of death

Are You Getting Your Fair Share Of Startup Equity?

Startup Professionals Musings

So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone.

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The Difference between Debt Financing and Equity Financing: Which Is Right For You?

YoungUpstarts

When you’re looking for extra funds, there are typically two options: debt financing and equity financing. Equity Financing. Equity financing is provided by an investor instead of a lender. You can establish a budget based on what you know the principal and interest will cost.

How does equity dilution work for startups?

Gust

Equity dilution works when the same pie is divided among more people. Over time, other people receive pieces of equity in exchange for work (employee stock options), money (seed, angel and venture investors), services (attorneys, directors, etc.).

For Equity Investors, A Startup Has To End To Win

Startup Professionals Musings

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual. entrepreneur equity investors IPO startup exit

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How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. Below, Lee Hower offers advice for approaching these equity discussions objectively and properly.

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Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business. Jane and Dick each brings a similar level of skill and capability to the business, making it easy for them to agree to a 50/50 equity split.

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8 Secrets for Maximizing Startup Equity and Control

Startup Professionals Musings

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Every outside hire increases your cost and risk. startup control equity bootstrapping Rich Christiansen business

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Are You Ready for Equity Based Crowdfunding?

Up and Running

Then, the unveiling of the Securities and Exchange Commission’s proposed equity crowdfunding rules reveals a panacea for growing your business’s coffers. Equity crowdfunding vs. donation crowdfunding. Equity crowdfunding differs from donation crowdfunding in two major ways.

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10 Partner Qualities to Test Before Sharing Equity

Startup Professionals Musings

If one of your core values is exceeding your customer expectations for quality and service, and your potential partner ascribes to the low cost, high profit mantra, a successful partnership is highly unlikely over the long-term. entrepreneur startup co-founder partner equity business

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Founder's Dilemmas: Equity Splits

Startup Lessons Learned

Having seen these dilemmas derail countless startups, I wish every entrepreneur and prospective founder would read this book." - Eric The following is an exclusive excerpt which sets up a common pitfall regarding equity splits.

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Should You Offer Equity Compensation to Employees?

Up and Running

Of course, not every equity compensation story is a David Choe Story. If you’re thinking about extending equity to an employee or a vendor (as in the example above), you should know that the topic is multi-faceted. In this article, I’m going to examine: What equity compensation is.

What is the ratio of equity received for sweat equity vs. cash investment in a new venture?

Gust

There is no specific ratio between “sweat equity” and cash in a venture, and that’s actually not a good way to think about the issue. You might have created that value by slaving 18 hours a day, seven days a week for five years (in which case the value of the sweat equity is $8.70 The second component is the replacement cost of the specific skills and effort that are involved in the particular work.

Startups Should Be Responsible for Explaining Equity to New Employees

View from Seed

When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. Of late, I’ve encountered numerous potential startup candidates and newly hired employees who have no idea what their equity means. It falls on the hiring company to thoroughly explain equity options to their new employees.

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An Advisor Equity and Advisor Pool Breakdown

Eric Friedman

Bigger/better advisors who get more equity have things like; excellent domain expertise to help you avoid pitfalls, deep connections within the industry to help with the intros, partnerships, and more. As a potential advisor looking to get involved with the company; MORE EQUITY!

Equity for Early Employees in Early Stage Startups

SoCal CTO

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept.

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Sometimes co-founders put off the equity split question for some time. Both of these are typically reflected in the founder equity split.

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When should a convertible note be treated as a replacement for an equity round, and take on characteristics of an equity financing?

Gust

A convertible note and an equity round are two different things, done for different reasons. A large majority of serious investors will insist on an equity round, either lightly documented (such as a Series Seed) or fully documented (such as an NVCA Model Series A). If they are similar in range, go right for an equity round, instead of incurring the cost and hassle of double-papering a note and a preferred round. It doesn’t work that way.

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How to Scale a Venture Capital (or Private Equity) Fund

David Teten

– Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives.

Importance of Finance to Your Business

The Startup Magazine

This means for the initial capital investment must be well managed, with a thin line between debt and equity financing. Finance is one of the very subtle sectors of a business that can make or break entrepreneurs. Ideally, all companies need finances for daily operations.

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Sometimes co-founders put off the equity split question for some time. Both of these are typically reflected in the founder equity split.

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Startup Equity Crowdfunding Grows in Europe (NESTA Report)

VC Cafe

Amongst the different types of crowdfunding: Donation, Reward, Lending and Equity, the latter is on the rise as a fundraising mechanism for European startups. investors can then, through the platform, buy small parts of this equity stake. Decision on how much equity.

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Founder's Dilemmas: Equity Splits

www.startuplessonslearned.com

Founders Dilemmas: Equity Splits. The following is an exclusive excerpt which sets up a common pitfall regarding equity splits. Setting the early equity split in stone is one of the biggest mistakes founders can make. Founders Dilemmas: Equity Splits. Lessons Learned.

Cost ratios as a measure of fund efficiency

The Equity Kicker

This applies to all classes of fund managers, including pension fund managers, IFAs, private equity fund managers, and venture capital fund managers. Fund managers are assessed, in part, on their ratio of expenses to assets under management.

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7 Best Strategies for Maintaining Equity

Early Growth Financial Services

Of utmost concern to many entrepreneurs is how to retain maximum equity in their startups. Whether you’re funded, seeking funding, or still bootstrapping, here are some of the best strategies for avoiding dilution and maintaining maximum equity: 1. In my opinion, the best strategy for retaining maximum equity in your startup is to do milestone raises. Rightly so. It’s a constant balancing act: growing your company without losing control of it.

A primer on convertible notes, convertible securities, and equity

Hippoland

Equity Traditionally, investors have invested in companies to receive equity, or shares in a company. The concept of equity rounds (also called priced rounds) is very straightforward. And as you raise money at later stages, you will most likely be raising equity rounds.

Is Dead Equity Crippling Your Company?

Altgate

—————– Dead equityequity held by employees and founders no longer working at the company — is a large and growing problem. Choe opted to forgo a cash payment “in the thousands” for the equity equivalent at the time.

Why Your Customers Buy More When Value Outweighs Cost

ConversionXL

This concept is illustrated in the heuristic below: Value force outweighs cost force. The post Why Your Customers Buy More When Value Outweighs Cost appeared first on ConversionXL. “At MECLABS we’ve spent years asking and trying to answer a simple question: ‘Why do people say yes?’.

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Should Equity-Based Crowd Funding Be Legal?

Growthink Blog

Letting small companies sell equity stakes online would be a huge boost to those firms—like angel investing on steroids. The businesses would get access to tens of millions more potential investors, and could reach out to them at little or no cost through online outlets like Facebook. Broadening the Base Currently, equity-based crowd funding falls under strict Securities and Exchange Commission rules governing angel investing. Funding is the lifeblood of any small business.

How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . Sources like Crunchbase , Angel List , and Seed Invest even give this data away for free or very low cost. Stanford List of Venture Capital and Private Equity Sources.

Startup Equity For Employees

www.payne.org

Startup Equity For Employees. 7 Salary vs Equity. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. UPDATE: If youre a founder or near-founder, your equity terms are likely defined by the funding terms negotiated with the investors. Buying your stock would cost $200,000! Salary vs Equity.

Free Startup Docs: How Much Equity Should Advisors Get?

techcrunch.com

Free Startup Docs: How Much Equity Should Advisors Get? Entrepreneurs want to compensate their mentors and advisors for the time they dedicate to helping their businesses grow, but they have no idea how much equity to offer. Startups. Mobile. Gadgets. Europe. Video. Enterprise. Venture.

Convertible Equity, A Better Alternative To Convertible Debt?

techcrunch.com

Convertible Equity, A Better Alternative To Convertible Debt? As a refresher, a convertible note is a loan that automatically converts into equity upon the closing of a Series A round of financing. Startups. Mobile. Gadgets. Europe. Video. Enterprise. Venture. Social. GreenTech. Gaming.

Is Dead Equity Crippling Your Company?

Altgate

—————– Dead equityequity held by employees and founders no longer working at the company — is a large and growing problem. Choe opted to forgo a cash payment “in the thousands” for the equity equivalent at the time.

The Equity Equation

venturehacks.com

The Equity Equation. As this nuclear winter of venture hacks continues, I thought you might enjoy our thoughts on Paul Graham’s The Equity Equation. ” Read the rest of The Equity Equation first; it is great. You have to pay market rates regardless of the equity equation. Consider the opportunity cost of spending shares on employees and investors. You have to pay market rates regardless of the equity equation.

How Entrepreneurs Pay Off Their Mortgages Early

The Startup Magazine

Is your property likely to have hidden costs? Ensuring that your estate agent is a member of the National Association of Estate Agents (NAEA) will help to keep you away from hidden costs. Getting a mortgage has become a rite of passage for many individuals.