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What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking

Steve Blank

But startups require money upfront for product development and later to scale. While you might be interested in building a company that changes the world, regardless of how long it takes, your investors are interested in funding a company that changes the world so they can have a liquidity event within the life of their fund ~7-10 years. (A

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Wow! Are your relationships important!

Berkonomics

Forming business relationships at the highest level As you follow these insights from ignition to liquidity event, you’ll detect a continuing theme, emphasizing the need for deep and wide relationships that the CEO and senior staff can call upon for advice and guidance. That last 10% is most important and often overlooked.

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Early-stage Regional Venture Funds–part 2 of 3 of Bigger in Bend

Steve Blank

Over the years Dino and I brainstormed about how Lean entrepreneurship would affect regional development. The cloud , open-source development tools and web 2.0 This was valuable to startups in the Valley and has been vital to startups in regions where the ecosystem is less developed.

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How Do You Want to Spend Your Next 4 Years of Your Life?

Steve Blank

You don’t want to do Customer Development with them. Or is it something that can grow to a size that will result in an acquisition or some liquidity event? It was a lifelong lesson that taught me to never start a business where you hate your customers. It never goes well. You don’t want to talk to them.

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What to expect before accepting the offer to become Engineer #1 at a startup

The Next Web

Often difficult to get, the first engineer sets the tone for the rest of the development team. What you need to consider: - x : percent ownership upon a liquidity event. Again this is somewhat simplified as the liquidity event (sale or IPO) may come as cash, stock, or a combination of the two.

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Equity for Early Employees in Early Stage Startups

SoCal CTO

But the more important rationale is raised in the following about why employees most often do not have significant outcomes even in fairly positive liquidity events. If this is a junior level developer, then likely you can provide significantly less equity. The example numbers above bear this out.

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10 Keys To Investor-Friendly New Venture Financials

Startup Professionals Musings

Unattractive uses, from an investor standpoint, would include research and development, buying a building, or large salaries. Define an exit strategy for investors to liquidate their share. Investors have learned that simple buy-outs of their share by owners often become major squeeze-plays.