Trending Sources

CTO Salary and Equity Trends 2009-2011

SoCal CTO

Todd Gitlin of Safire Partners - a go to resource here in LA for recruiting C-level positions at startups - was nice enough to compile some data again this year (see last year's Startup CTO Salary and Equity Data ). You can also enter salary and equity data to see where you stand.

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7 Investor Term Sheet Demands Startups Need Not Fear

Startup Professionals Musings

Investors, on the other hand, look at the money figure, and even the equity, as the easy part. This is a loan with an option to convert to equity at a later date. For later investments, the price is equity, with a percentage of the owner stock to be assigned to the investor.

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.

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

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.

Announcing Volition Capital’s Newest $250 Million Growth Equity Fund, Volition Capital Fund III

Thinking About Thinking

This fund will have substantially the same strategy and focus as all of our prior funds – which we call small cap technology growth equity. Our small cap technology growth equity strategy is not a marketing pitch – it’s our genuine, feel-it-in-our bones, part-of-our-DNA, belief about how to best steward the capital of our investors. It was clear before our fundraising process even began that there was substantial demand from investors for what we do.

Announcing Volition Capital’s Newest $250 Million Growth Equity Fund, Volition Capital Fund III

Thinking About Thinking

This fund will have substantially the same strategy and focus as all of our prior funds – which we call small cap technology growth equity. Our small cap technology growth equity strategy is not a marketing pitch – it’s our genuine, feel-it-in-our bones, part-of-our-DNA, belief about how to best steward the capital of our investors. It was clear before our fundraising process even began that there was substantial demand from investors for what we do.

What is convertible equity (or a convertible security)?

Startup Company Lawyer

Quick answer: convertible equity (or a convertible security) is convertible debt without the repayment feature at maturity or interest. ” In response, Seth Levine wrote a very thoughtful post on convertible debt versus equity. Other folks, such as Mark Suster, have also written about whether convertible debt is preferable to equity. Fred Wilson has been openly critical of convertible debt , and prefers priced equity rounds. Making it equity removes this issue.

Superfund Equities Report - 12/01/2104

Chaganomics

Superfund Equities Report SIGN UP AT WWW.TINYLETTER.COM/SUPERFUND Greetings December! Perhaps switching to Saudi only oil and for that fact, eastern demand for precious metals? CH Chad Hagan CEO, Hagan Capital EIC, Superfund Equities Today in Atlanta it was unseasonably warm. I like weather benchmarks, and today we blew one out. That will change with night fall. Come on strong winter! What is up with commodities? Are traders in Zurich shutting shop?

11/29/2014 - Superfund Equities Report

Chaganomics

11/29/2014 - Superfund Equities Report - www.tinyletter.com/superfund The fund sold F (Ford) and piled up on TASR (Taser), SWHC (Smith & Wesson), ZNGA (Zynga) and ABR (Arbor REIT) Citi Group''s Index unit is for sale - LINK OPEC''s meeting in Vienna this week shook the oil markets. In 2007, amid a nascent global financial crisis, two of his company''s hedge funds were melting down, faced with demands for more collateral, etc.

Private Equity: Threat or Menace?

Inc Startups

Private equity is under attack in Presidential politics. If you let that affect your decision to accept private equity capital, you're out of your mind. What is surprising, though, is that the target of one of the attack ads is private equity. So, What is Private Equity, Exactly?

Professional Investors Qualms About Crowdfunding

Startup Professionals Musings

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. In equity crowdfunding, no investor is representing their own interest.

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. Broadening the Base Currently, equity-based crowd funding falls under strict Securities and Exchange Commission rules governing angel investing. First, the SEC largely limits private-equity investments to accredited investors—those with $1 million or more in net worth, among other tight standards. Funding is the lifeblood of any small business.

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7 Ways to Motivate Your Startup Team — Without Giving Away Equity

ReadWriteStart

Sharing equity in your business early on can lead to complex problems as your company grows. If you’re going to make extraordinary demands of your team (and we all know you are), there will come a time when they crack. Startup entrepreneurs live, eat and breathe their companies.

How much equity do I give an advisor? What do they give me?

The Startup Toolkit

Going back to the more normal 0.5-2%, you treat advisor equity just like founder or employee equity: vested over 4 years. I get regular intros & feedback, and they endure minimal demands on their time. 1] Advisors get paid on an exit just like investors, so the investability & valuation of a company is a good heuristic for the value of the advisor’s equity. [2]

Equity Crowdfunding Companies To Invest Into During Summer

ArcticStartup

Our region is not lagging behind, in fact when it comes to equity crowd funding we are definitely ahead of the curve. Due to popular demand and the success of the previous round, they are back again.

Entrepreneur Startup Share Depends on Contribution

Startup Professionals Musings

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Another common “failure to start” situation I see is one where the “idea person” insists that the idea is 90% of the value (and 90% of the equity).

SBA Helping Owners Tap Their Real Estate Loans for Equity

Inc Startups

The demand for real estate space in the core property types: office, industrial, retail, and the apartment sector has stabilized and is turning positive, a relief since demand has been negative for the past three years.

Superfund Equities Report - 12/01/2014

Chaganomics

Superfund Equities Report SIGN UP AT WWW.TINYLETTER.COM/SUPERFUND Greetings December! Perhaps switching to Saudi only oil and for that fact, eastern demand for precious metals? Today in Atlanta it was unseasonably warm. I like weather benchmarks, and today we blew one out. That will change with night fall. Come on strong winter! What is up with commodities? Are traders in Zurich shutting shop? The US oil industry is maturing, not ending. LINK Even lower crude prices possible.

April 4-Innovation in Private Company Liquidity-Online Merger Markets, Social Media, Secondary Markets, Non-US Markets, Private Equity, and the Disappearing IPO

David Teten

We will discuss liquidity options appropriate for a wide range of people with private company stock, including private equity funds, venture capitalists, angels, founders, and employees with options. Events Private Equity Venture Capital

10 Steps to Raising VC Funding For Your Startup

Early Growth Financial Services

There isn’t of course, but there are ways to make the process feel less like a heroic quest and more like a demanding but achievable goal. You’ll greatly increase your chances of success if you identify your milestones and then calculate how much capital you need to raise in … read more > Equity / Debt / Venture Funding Don’t you wish there was a formula that could guarantee funding success?

Crowd Funding – A Critique for Entrepreneurs and Investors

Gust

Consequently, US regulators have discouraged the selling of equity (shares) through crowd funding websites, so online companies, such as Kickstarter.com , offer the opportunity to donate funds to interesting US startup ventures in exchange for the right to become early product users or simply listed on the new ventures’ websites. Crowd investors will not be in a position to demand board representation on new companies and will likely suffer from lack of feedback from funded companies.

The Difference Between Existing Markets and New Markets

Thinking About Thinking

A new market is a market where the end product or service is new – in other words there isn’t really existing demand, but there could be. Filed under: Growth Equity , Technology , Venture Capital. Growth Equity Technology Venture Capital chewy.com Globaltranz market size prosper spacex uber Nearly every company pitch I’ve seen covers the topic of market size.

Can A Hoodie Increase Brand Equity?

crowdSPRING Blog

From a brand equity perspective, the purple hoodie was a unique way to acquire 2,000 die-hard brand advocates. Startups have been using branded apparel as a way to build brand equity for years. Image credit: Twitch.

Fundraising? Be a Buyer, not a Seller

StartupCFO

Here’s the thing: At the early stage there’s tons of demand for capital and fewer sources. Angels Raising Capital Venture Capital bootstrapping capital early stage equity Fundraising late stage VC

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How FX Marketing President Stephanie Gibbons Stuck the American Horror Story Promotional Landing

crowdSPRING Blog

So it plays upon that supply-and-demand aspect, and that wanting and needing and not having aspect that drives so much of human endeavor. 1) Brand equity is everything. inspiration Marketing and branding brand equity branding design marketing promotion StrategyYou might not be an American Horror Story fan. I wouldn’t blame you. The extravagant horror anthology from Ryan Murphy is at turns decadent, grotesque, and terrifying, and that’s not for everyone.

Viola Private Equity Pumps $7 Million into Zend

VC Cafe

V iola Private Equity , an Israeli PE fund with $164 million under management for technology buyouts, has announced a $7 million investment in Zend , the leading provider of open-source and commercial solutions based on PHP web applications.

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Smart Entrepreneurs Build Startups Without Investors

Startup Professionals Musings

Many aspiring entrepreneurs jump ship from corporate environments, complaining that they want to be their own boss, only to find that investors are more demanding bosses than the ones they left. You don’t have to fight for your equity, and no one can slow you down in decision making.

The Smartest Entrepreneurs Bootstrap Their Startup

Gust

Yet, according to many sources , over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals.

Equity Clawbacks: How to Avoid a Zynga Situation

Inc Startups

Here's how you can avoid Zynga's equity snafu if you're considering offering employees stock options. You can see this difficulty play out in the equity clawback drama allegedly unfolding at online gaming start-up Zynga.

Introducing Digital Fortress

Non-Linear Growth

What we found was a fragmented market that had great supply-demand characteristics. There were an incredible number of moving parts here, including simultaneous negotiation, documentation and diligence processes on both acquisitions, a debt syndication, an equity syndication, and most importantly, the establishment of a new management team which has the chops to achieve our goals for the investment.

The Pre-money vs. Post-money Confusion With Convertible Notes

Feld Thoughts

Or, if you just want the paragraph, it’s: “If this note converts at a price higher than the cap that you have been given you agree that in the conversion of the note into equity you agree to allow your stock to be converted such that you will receive no more than a 1x non-participating liquidation preference plus any agreed interest.”. The other day, Mark Suster wrote a critically important post titled One Simple Paragraph Every Entrepreneur Should Add to Their Convertible Notes.

Splitting Startup Equity for Your Piece of the Pie

Startup Professionals Musings

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Another common “failure to start” situation I see is one where the “idea person” insists that the idea is 90% of the value (and 90% of the equity).

7 Things Investors Use To Determine Valuation

Early Growth Financial Services

I’ve already addressed formal valuation for startups in previous posts: Generating Your 409A Valuation and Calculating Your Equity Valuation. It’s a pretty simple equation, in some ways: If there is a demand and your company satisfies the demand, your valuation will be high. Now I’d like to look at how a potential investor determines your company valuation. In other words, how can you figure out how much an investor will be willing to pay for your company?

Smart Entrepreneurs Plan Ahead For A Startup Exit

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.

5 Surprising Truths From A Crowdfunding Advocate

Startup Professionals Musings

Boy wearing Oculus Rift via Wikipedia As an advisor to many entrepreneurs, I still hear frequently the irrational exuberance that crowdfunding is the quick alternative for startups that are passed over by overly demanding angels or venture capital investors.

5 Ways To Check Your Investor Intent Before Signing

Startup Professionals Musings

Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. Investor agreements should always be reviewed by an attorney who is familiar with startup equity investment deals.

What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

The Laws of Supply & Demand. The most basic chart of microeconomics is a supply & demand curve. Demand represents a buyer and supply a seller. Other products “elastic” meaning demand falls off quickly when prices go up.

Startup Hiring: The 10% Solution

www.readwriteweb.com

But you can still reel in good people - if youre generous with your equity. Pinterest can hire, Square can hire, Dropbox can hire - these companies have a clear demand for their products and are becoming market leaders," explains Naval Ravikant, founder of startup advice site Venture Hacks.

Size Up Your Investors Before Accepting Their Money

Startup Professionals Musings

Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. Investor agreements should always be reviewed by an attorney who is familiar with startup equity investment deals.