Remove Cost Remove Liquidation Preference Remove Operations Remove Partner
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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

2010 Operating Income: $16 million. Obviously most of these employees are working hard primarily for equity upside compensation, but Kayak’s personnel costs are roughly $200K/head so the company is highly productive on a per employee basis. liquidation preference, 6% accumulated dividend (1). Series A-1 Preferred.

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How to Work with Lawyers at a Startup

Both Sides of the Table

Focus on the partner you would be working with. How to manage costs - One of the biggest frustrations that people have with lawyers are unexpected costs. I always try operate on the “Fixed Fee +&# arrangement. One issue he talked about was working with partners. I also like to work with partners.

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Investors Beware: Today’s $100M+ Late-stage Private Rounds Are Very Different from an IPO

abovethecrowd.com

As another example, consider that most public marketplace companies, such as ebay or GrubHub, report revenues on a “net” basis rather than gross (approximately 80-90% of revenues go to supplier partners, so this is the proper conservative representation). These liquidation preferences give the investor a debt-like downside protection.

IPO 40
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Should Entrepreneurs Attend Business School?

Up and Running

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).

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New Plain Preferred Term Sheet

www.founderinstitute.com

The Lab manages the shared operational needs of its member organizations, allowing them to better focus on mission and execution. When members see connections, they often partner with one another, backstopping and expanding each other’s capabilities and skills or forming entirely new ventures.

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The Seeds Have Changed: An Epilogue to The New Venture Landscape

K9 Ventures

In addition, the competition for and the cost of hiring people, especially in the San Francisco Bay Area, has gone up dramatically. So while the infrastructure cost and startup costs may have declined, the operating costs have increased. Adding partners and staff, starts to give a false sense of scale.

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Should you raise traditional VC or Revenue-Based Investing VC?

David Teten

Lower processing cost. Much lower cost of capital, if company is highly successful. The cost of VC funding to a unicorn CEO can easily be the equivalent of paying well over 100% annual interest. Cost of capital is tax deductible, unlike traditional equity VC. For a VC round, this can be $25-50k+.

Revenue 60