David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Flexible VC creates early liquidity which can be either reinvested or distributed to LPs.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

JUNE 17, 2017

Is the revenue dependent on a concentrated set of distribution partners or platforms that put future revenue at risk? They hired a biz dev team to work on deals where their product could be embedded in other people’s products as a way to increase customer demand. Stock option grants dilute your ownership in the company.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Startup Lessons Learned

AUGUST 24, 2009

One is explaining the world as it used to work: the importance of gatekeepers, the scarcity implied by limited distribution, and the resulting quality bar that the industry is so proud of. Mostly it is the time and expense required to create the means of distribution for that industry. It’s just taking some longer than others.

San Francisco 113

San Francisco Lean Technical Review Distribution 113

Tim Keane

JANUARY 12, 2010

Next, they carefully consider the range of multiples being used today to value companies being acquired or doing IPOs in the market that the business is in. A liquidation preference means that the investors receive their investment back (plus dividends) prior to a distribution of the proceeds to stockholders. times the investment.).

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

MARCH 11, 2011

GoTo.com went on to ink huge distribution deals with Microsoft, AOL & Yahoo! Secondly, they had an owned & operated (O&O) website – Google.com – and Overture had shut down GoTo.com at the request of their very profitable and large distribution partners. Too many entrepreneurs focus on dilution.

Product 350

Product Tuvalu Dilution Incubator 350

The Equity Kicker

APRIL 13, 2012

Throughout our evolution, from privately held start-up to large, publicly listed company, we have managed Google for the long term — enjoying tremendous success as a result, especially since our IPO in 2004. We have protected Google from outside pressures and the temptation to sacrifice future opportunities to meet short-term demands.

Dilution 87

Dilution Stock Government SEC 87

abovethecrowd.com

APRIL 20, 2016

The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. In Q1 of 2016 there were zero VC-backed technology IPOs.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40