David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

NOVEMBER 13, 2012

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals.

Sweat Equity 239

Sweat Equity Technical Review Bootstrapping Equity 239

Startup Professionals Musings

AUGUST 29, 2018

According to Yahoo Finance , less than a third of crowdfunding campaigns currently reach their goals, and the rest have to return anything they do collect. In fact, there are many types of crowdfunding, including donations, reward, pre-orders, loans, and equity. That exceeds the amounts contributed in the U.S.

Equity 180

Equity Due Diligence Angel Groups Liquidity Event 180

Startup Company Lawyer

AUGUST 31, 2012

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. Fred Wilson has been openly critical of convertible debt , and prefers priced equity rounds.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Startup Professionals Musings

SEPTEMBER 22, 2011

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals.

Sweat Equity 255

Sweat Equity Technical Review Entrepreneur Bootstrapping 255

ReadWriteStart

JUNE 1, 2020

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. Forms of funding. ? Equity investment. Equity investment is the most popular and most talked-about avenue for startup funding. Equity investors.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Gust

DECEMBER 15, 2013

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals.

Bootstrapping 183

Bootstrapping Sweat Equity Entrepreneur Technical Review 183

Both Sides of the Table

MAY 28, 2018

It’s true that some later-stage private equity firms like to fund “roll ups” (a company that acquires many related companies in it sector), but this is seldom the domain of VCs. Every VC wants to fund a deal that seems to have too much demand. Having too little demand leads to bankruptcy.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

YoungUpstarts

SEPTEMBER 23, 2017

Deciding whether to increase money or trade equity in the business for much needed assistance, could be a tough call. I raised money and traded equity, but with my venture, I had to make one of the toughest decisions, to build it with some assistance of co-founders. Both the choices tend to take away a few options. Plan, Plan and Plan.

Cofounder 124

Cofounder Sweat Equity Equity Dilution 124

Both Sides of the Table

SEPTEMBER 5, 2012

This time by the efforts of Adeo Ressi to introduce a new kind of structure called “ convertible equity.” My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

www.startuplessonslearned.com

MAY 4, 2012

Founders Dilemmas: Equity Splits. The following is an exclusive excerpt which sets up a common pitfall regarding equity splits. In Noam’s dataset, 73% of founding teams split equity within a month of founding, a striking number given the big uncertainties early in the life of any startup. Lessons Learned. by Eric Ries.

Equity 72

Equity Founder Technical Cofounder Cofounder 72

YoungUpstarts

OCTOBER 28, 2015

This article highlights their advice on issues ranging from financing to patent trolls: While startups may believe lawyers are too costly, working with one early on avoids potentially serious problems later. Entrepreneurs need to hit a happy medium with backers, not giving away too much but not making overly aggressive demands.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

YoungUpstarts

JUNE 16, 2020

Reasons for a business valuation run a gamut from selling the business due to retirement or health reasons to financing expansion efforts to adding shareholders to a buyout situation. Any of these situations will demand a valuation to determine current and future projected value. . Three Methods of Valuation.

Valuation 162

Valuation CPA Software Review Revenue 162

A Smart Bear: Startups and Marketing for Geeks

JANUARY 4, 2018

This week we closed $250M in financing from Silver Lake , the premier technology private equity firm. We just announced a few more things. Late last year we passed $100M in annual recurring revenue. We’re less than 8 years old so you can do the math on growth rates and figure out that we’re on an elite trajectory.

Engineer 152

Engineer Revenue San Francisco Security 152

The Startup Magazine

MARCH 20, 2019

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. This is what makes the concept of finance very important as an area for all organizations to cover. To make profits. Operational expenses. Asset creation.

Finance 105

Finance South Africa Africa Operations 105

David Teten

AUGUST 19, 2019

Does the traditional VC financing model make sense for all companies? I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Though RBI will displace some traditional equity VC, its much bigger impact will be to expand the pool of capital available for early-stage entrepreneurs.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Up and Running

JANUARY 20, 2020

I’d learned cash flow in business school, but I had to learn it again, for real, by going to my bank, signing a lien on my house equity, and getting an emergency loan. . The faster you grow, the more financing you need. For example, a consultant can’t often simply demand deposits or prepayments from clients.

Technical Review 132

Technical Review Metrics Finance Forecast 132

Startup Professionals Musings

MAY 30, 2022

Very few startups are cash-rich enough to self-finance aggressive second-stage growth. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. I like the ten steps he outlines, which I characterize here as follows: Seek major capital infusion. There is no free lunch.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

Startup Company Lawyer

MARCH 14, 2010

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

The Startup Magazine

FEBRUARY 18, 2024

The idea at the center of his real estate revolution is “shared equity,” a concept he devised after years of research and international travel. The abstract version of markets, the one in which they flawlessly create supply to match demand and precisely set prices, is not reflective of the way markets often work in the real economy.

North America 117

North America Equity America Singapore 117

The Startup Magazine

MARCH 21, 2022

Debt Financing. Debt financing, which involves borrowing from banks or other financial institutions, is the most common way to do so. Debt financing, which involves borrowing from banks or other financial institutions, is the most common way to do so. Equity Financing. Let’s get started! Do Your Research.

Business Plan 147

Business Plan Bootstrapping Equity Finance 147

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Growthink Blog

DECEMBER 20, 2017

The first is that we currently have awesome economic conditions: a roaring stock market, low unemployment, and solid consumer and business confidence, all of which make right now as good a time as ever to start, grow, finance, and/or sell a business. Business equity is a measurement of financial accomplishment attained and retained.

Balance Sheet 48

Balance Sheet Malaysia Indonesia Finance 48

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . In the private equity universe, most Partners have primary training as deal-makers, not as managers. (To see the video above, please click the image, and then click on the Play button.).

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

YoungUpstarts

OCTOBER 25, 2018

Hillcrest Merchant Partners concentrates on investing their own capital in early stage companies, and advisory areas that include equity and debt structuring, reverse takeovers, M&A advisory and private to public processes. Mark Attanasio: Financing can be an ongoing, underlying issue, but there are so many speed bumps on the way.

Partner 113

Partner Technical Review Management Due Diligence 113

Startup Professionals Musings

NOVEMBER 13, 2021

Community means more than supply and demand. In the US, we are still waiting for equity crowdfunding, but the rewards, donation, pre-order, and debt-funding models are already working. It can mean selling through peer-to-peer e-commerce ( eBay ), renting ( Vrbo ), gifting ( GiftCrowd ), or even swapping ( Swapz ).

Cuba 316

Cuba Venture Capital Community Valuation 316

VC Cafe

APRIL 29, 2020

This is part of Israel’s Ministry of Finance NIS 1.2 Source: NVCA , “Startup Ecosystem Faces Capital Crunch over Coming Months” USA – SBA Loans and PPP. Startups are able to secure the matched funding up to 3 months from submitting the request.

SBA 124

SBA Technical Review Startup 124

Startup Professionals Musings

JULY 16, 2012

In the last year, there has been a resurgence of interest, some say a bubble, by both angels and VCs, in a pre-Series A kicker to identify promising startups with seed funding, before major equity has been given away. Despite these pundits, I sense a fundamental change in the early-stage financing eco-system. Early-stage startup.

Early Stage 253

Early Stage Finance Seed Stage Entrepreneur 253

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 21, 2011

It’s among the most-asked questions on startup forums, and an issue we’re dealing with right now at WPEngine as we bring on new employees: How do you decide how much equity (shares) to give a new employee or partner? Now consider this scenario: That same new hire quit her old job but demands the same $10,000/mo from you.

Equity 276

Equity Salary Hiring Institutional Investors 276

The Startup Magazine

APRIL 5, 2024

This allows you to move on opportunities faster than competitors relying on traditional financing. Cash purchases also give you instant equity in your newly-acquired property. You might also forgo the profit leverage that could be gained from financing multiple properties with the same amount of cash.

Due Diligence 118

Due Diligence Marketing Portfolio Finance 118

Startup Lessons Learned

APRIL 24, 2012

." - Eric The following is an exclusive excerpt which sets up a common pitfall regarding equity splits. In Noam’s dataset, 73% of founding teams split equity within a month of founding, a striking number given the big uncertainties early in the life of any startup. We shook across the table,50–50,” Robin recalls, “and I thought ‘great.’”

Equity 168

Equity Founder Cofounder Vesting 168

Steve Blank

APRIL 1, 2020

With more work from home happening, all of these services will see increased demand from companies. As part of these operating changes, make sure your heads of HR and finance recognize that they have entirely new jobs. Award equity to employees equal to the value of their reduced salaries. Draw down all debt commitments.

South Korea 333

South Korea Salary Business Model China 333

Up and Running

DECEMBER 4, 2017

You can also be an entrepreneur by acquiring someone else’s company and making it better—growing sales and increasing profitability—as an equity-owning CEO. First and foremost, running any type of business will require the ability to manage others, make decisions, and possess an understanding of finances and what makes a business profitable.

Due Diligence 97

Due Diligence Acquisition Demand Small Business 97

Hunter Walker

AUGUST 7, 2017

Employee options pools, typically created at the point of financings, shouldn’t be treated as haggling over dilution, but rather a strategic resource that will help founders build the best team and, by extension, a more valuable company. As you can see, Weekend VC Twitter gets pretty wild and crazy!!!!

Equity 94

Equity Pre-Money Valuation Option Pool Founder 94

YoungUpstarts

NOVEMBER 27, 2018

From there, it’s time to inquire what the value of the company currently is and if their investment is going towards equity or loans. He has acquired extensive experience in coaching, creating, managing, developing and financing more than 200 high-tech startups across several sectors, including the medical and information technologies.

Early Stage 160

Early Stage Cofounder Startup Security 160

Version One Ventures

OCTOBER 15, 2020

Let’s now explore the major developments and ultimate use cases for the Lightning Network in two categories: A) payments/finance and B) Web3. . Use Case I: Payments and Finance . In this post, I outlined why the Lightning Network matters and recent developments around its two major use cases: payments/finance and Web3. .

Networking 168

Networking Global OTC Security 168

www.quora.com

SEPTEMBER 22, 2011

Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation Stock Options Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? This ties into this Paul Graham article: [link] /equity. I'm always su. This answer.

Equity 40

Equity Employee Founder Cofounder 40