VC Cafe
OCTOBER 31, 2022
On the one hand, the prices have come down as a result of the public market multiples, resulting in some funds investing in public equities as they see it as an opportunity to buy low. That means that investors are contractually demanding to get 2-5x their investment, before other share classes get paid.
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.
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YoungUpstarts
AUGUST 31, 2017
If your startup is eyeing international expansion early on, your tax compliance and planning needs, both home and abroad, immediately ratchet up. It’s almost impossible for a business owner to keep up with all the international and multistate tax regulations, mergers and acquisitions issues, and equity compensation happenings.
Tim Keane
JANUARY 12, 2010
The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay. Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.
abovethecrowd.com
APRIL 20, 2016
Examples of dirty terms include guaranteed IPO returns, ratchets, PIK Dividends, series-based M&A vetoes, and superior preferences or liquidity rights. I get that you want to grow and I want you to grow, but let’s internally finance that growth by spending gross margin dollars rather than new dilutive dollars of equity.
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