Startup Professionals Musings

MARCH 22, 2020

Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. A second harsh reality for entrepreneurs is the realization of how little power you have to protect the position of these early investors. Loans are a safer option than equity.

Management 308

Management Cram Down Angel Investor Equity 308

Haystack

JANUARY 12, 2020

As valuations have gone up early, the cost of ownership has also risen, and in an early-stage fund where the loss ratio is likely to be much higher, high ownership has been increasingly important to these funds. 4/ Social Forces – As seed stage funds grow and mature, the GPs grow and mature too.

Seed Stage 106

Seed Stage Cram Down Early Stage Cofounder 106

Startup Professionals Musings

MARCH 9, 2018

Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. A second harsh reality for entrepreneurs is the realization of how little power you have to protect the position of these early investors. Loans are a safer option than equity.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

OCTOBER 10, 2014

Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. A second harsh reality for entrepreneurs is the realization of how little power you have to protect the position of these early investors. Loans are a safer option than equity.

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

APRIL 17, 2013

Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. A second harsh reality for entrepreneurs is the realization of how little power you have to protect the position of these early investors. Loans are easier than equity.

Cram Down 230

Cram Down Angel Investor Equity Dividend 230

Startup Professionals Musings

NOVEMBER 11, 2015

Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. A second harsh reality for entrepreneurs is the realization of how little power you have to protect the position of these early investors. Loans are a safer option than equity.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

Startup Professionals Musings

JUNE 2, 2013

Since Angel investors put money into 60 times as many companies as venture capital funds, according to Wikipedia, early-stage startups need to focus first on the key thresholds that drive these investment decisions. No VC or Angel investors I know are interested in a bunch of angry, crammed-down small investors as co-shareholders.

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269