Berkonomics

FEBRUARY 23, 2023

Email readers, continue here…] Think of major companies, public and private, that have lost their shiny appeal over time, including Zinga, LivingSocial and Fisker in this generation – and Alta Vista in the last. So, the question: load up with more equity and dilution? Or sell now?

Dilution 62

Dilution Valuation Early Stage Equity 62

Berkonomics

AUGUST 10, 2023

The last money has the first say – in valuation and in sometimes forcing draconian terms that require prior investors to contribute a proportional new investment to retain a semblance of their original rights and avoid dilution or worse yet, involuntary conversion to a lower class of stock. The newest investor has the power.

Liquidity Event 116

Liquidity Event Initial Public Offering Dividend Valuation 116

Up and Running

MARCH 19, 2015

Clear and concise writing should come easily in the business world, where an endless number of official emails are being sent by the day and wherein important messages are conveyed. After many emails, plans, and business letters, I made some practical improvements which I’m about to share with you. Email Excellence.

Email 60

Email Dilution Business Plan Audience 60

Berkonomics

DECEMBER 7, 2023

Email readers, continue here…] One of the items on Cohen’s list of twenty-five was stock options. In a previous insight, we explored the common percentage of a company’s fully diluted stock that is often granted in the form of options for new employees. and stock options as a perk?

Stock Options 62

Stock Options Stock Salary Dilution 62

YoungUpstarts

OCTOBER 16, 2016

You’ll be inundated with sales pitches, lame template emails, unsolicited voicemails and more. But take it from what a good friend and advisor once said to me: “Ego is dilutive to net worth.”. If you grow fast for any period of time, salespeople will approach you from all angles, wanting to sell you everything under the moon.

Cofounder 100

Cofounder Balance Sheet Small Business Administration Technical Review 100

Mike Michalowicz

APRIL 10, 2022

Step 1 – Perhaps step one is to get an email address to begin communicating your offering. Step 2 – Your second email can include an offering for a demo, to learn more, or perhaps a coupon for a product. Watch your deals here, don’t dilute the value of your offering in an effort to get new business.

Marketing 148

Marketing Dilution Sales Email 148

View from Seed

APRIL 24, 2019

The shockingly high engagement rates go beyond the one-way “promotions” over email which have now been relegated (and buried) in their own tab in Gmail. (Our Where we are with SMS I akin to where we were with email a ten years ago. I don’t think it even matters, and in part, because the SMS medium makes it feel like you are.

SMS 207

SMS San Francisco Channel Dilution 207

YoungUpstarts

MAY 9, 2017

With each task, project, email, drive-by conversation, meeting, etc., individuals dilute their focus and slow their productivity. It’s unsurprising that most teams struggle to meet productivity goals in environments where. team members are encouraged to take on more than their capacity allows.

Lean 124

Lean Agile Technical Review Dilution 124

View from Seed

SEPTEMBER 23, 2019

Plus, any other non-standard items here should be called out, too, like non-dilutive grants, as applicable. Subscribe to our email list to get the posts delivered straight to your inbox, and have the final version waiting for you at the end of the month. What not to include is directly stating valuation expectations.

Cap Table 211

Cap Table Seed Stage Valuation Dilution 211

Berkonomics

DECEMBER 31, 2020

The company was funded entirely by grants from the National Institute of Health, amounting to millions of non-dilutive dollars in all. No dilution to shareholders or the founders. Email readers, continue here…] Grant writing takes skill and immense amounts of time. How refreshing! How grants are considered.

Equity 62

Equity Finance Dilution Founder 62

Both Sides of the Table

OCTOBER 11, 2009

After all, most people are good for a few introductory emails. You can go as high as 1% because they’re going to get diluted when you bring in VC. So after realizing that you’re not getting the strategic insight you had hoped for you fall back to asking for introductions. People like to help.

Advisory Board 306

Advisory Board Startup Equity Valuation 306

Feld Thoughts

SEPTEMBER 12, 2018

First, Felicis Ventures is committing 1% on top of every check the firm writes in non-dilutive capital earmarked for “founder development” in coaching and mental health. .” I was delighted to see two articles in the last day about others addressing this.

Founder 116

Founder Cofounder Dilution Email 116

Mike Michalowicz

JANUARY 16, 2023

If you’re like me, you may be inundated with emails and ads for TED talks, keynote speeches and small business books from thought leaders offering to help your small business increase revenue. But, your messaging will be diluted if you are trying to speak to many needs. Speak to one person in the audience.

Small Business 60

Small Business Audience Revenue Dilution 60

Both Sides of the Table

JULY 25, 2010

I’d far rather dilute 10% early and get some investor traction than to wither for another 3-6 months trying to get my seed round together. The emails we all get on the AngelList get say something like, “New gaming platform invested in by Dave McClure, Chris Yeh and Jeff Clavier.

Silicon Valley 293

Silicon Valley Technical Review Southern California Angel Investor 293

ReadWriteStart

JUNE 1, 2020

One can also proactively reach out to investors by sending them emails with the teaser document and follow up for a meeting. Raising higher capital at an early stage means more equity to be diluted to the investors. Once you have the pitch along with its components ready, you should start approaching investors. Capital is expensive.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Berkonomics

JULY 16, 2020

If the equity value of a company is growing at the same rate as the company, say 40% per year, almost any form of debt financing may be preferable as a way of preventing further dilution from issuing additional equity. Back to loans costing less than dilution of equity. The banks need to be convinced.

Covenant 62

Covenant Dilution Warrant Intellectual Property 62

Both Sides of the Table

MAY 30, 2018

If a VC prices a flat or down round it means that management teams are often taking too much dilution. If I assume 20–25% dilution that implies a price of between $20–28 million pre-money valuation ($25-$35m post-money). If you’ve enjoyed or learned please email to a friend or share through social. Want to read more?

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

Berkonomics

MAY 13, 2021

There is a fine line between loading the company with too much debt and diluting the shareholders too early with additional equity investments. A board of directors is primarily responsible for oversight in the use of and the raising of money for the company. Relationships are often as valuable as an investment.

Dilution 62

Dilution Equity Channel Product Development 62

Berkonomics

APRIL 26, 2018

Email readers, continue here…] I find it a great thrill to consult to companies and their senior management when they have plenty of “firepower” (extra cash beyond needs) for acquisitions and strategic initiatives. A fast-growing but undercapitalized company is not highly valued in an acquisition.

Dilution 90

Dilution Acquisition Early Stage Book Value 90

Berkonomics

DECEMBER 14, 2017

Email readers, continue here…]. Sometimes, celebrities will agree to sit on an advisory board as a gift to the CEO, providing a bit of glamour for the company at small expense. How many advisors should you seek for a board?

Advisory Board 97

Advisory Board Dilution Vesting Stock 97

Duct Tape Marketing

OCTOBER 11, 2023

Connect with John Jantsch on LinkedIn Duct Tape Transcript Email Download New Tab John Jantsch (00:08): Hello and welcome to another episode of the Duct Tape Marketing Podcast. But what the dilution, if you bring it down to it that even creator entertainers and educators have in common is it's this human element. This is John Jantsch.

B2B 80

B2B Marketing B2C Community 80

Berkonomics

OCTOBER 18, 2018

Email readers, continue here…] Sometimes a secondary fund-raising effort leads to a lower valuation than the last. I have seen investors allow a company to die, rather than suffer the massive dilution of an offer by a new investor. Investor loyalty is most tenuous of all.

Valuation 96

Valuation Dilution Down Round Employee 96

Berkonomics

DECEMBER 21, 2017

Email readers, continue here…] In later insights, we will explore the legal and ethical responsibilities of board members. Almost always, professional investors, including angel groups and venture capitalists, also require at least one seat on the corporate board.

Covenant 97

Covenant Cost Angel Groups Angel Investor 97

Both Sides of the Table

SEPTEMBER 29, 2009

Enter the famous Sequoia “RIP Good Times” presentation and Ron Conway’s publicly leaked emails calling for big slashes in burn rates. Bu when you start to worry that the world is ending (as it seemed it was in late 2008 / early 2009) you tend to get worried about large burn rates.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Startup Lessons Learned

JULY 5, 2010

Brant and Patrick undertook a difficult challenge: to provide a generally accessible introduction to Customer Development, without diluting its impact or dumbing-down its principles. Get in touch: Twitter Email Facebook Linkedin Additional resources Startup LessonsLearned, All Seasons : Every post from the blog, in one 600+ page PDF.

Customer Development 166

Customer Development Developer San Francisco Customer 166

Berkonomics

OCTOBER 12, 2017

Email readers, continue here…] One of the items on Cohen’s list of twenty-five was stock options. In a previous insight, we explored the common percentage of a company’s fully diluted stock that is often granted in the form of options for new employees. (See See insight 28.).

Employee 97

Employee Stock Options Dilution Salary 97

Berkonomics

FEBRUARY 21, 2019

Third (if you’re keeping score), it is not wise to dilute the founder’s ownership greatly in the first round of financing. Giving control over that vision to others early on often dilutes the vision and is a disincentive to the entrepreneur. Entrepreneurs have a vision for what and how to create and build a great business.

Dilution 48

Dilution Retention Valuation Startup 48

Berkonomics

MARCH 8, 2018

Pay early stage board members of companies that are not lifestyle businesses one percent of the fully diluted equity in the form of an option that vests over four years of service. Email readers, continue here…] For lifestyle companies or later stage companies, board members should be paid on a per-meeting basis in cash.

Early Stage 102

Early Stage Vesting Stock Options Preferred Stock 102

Austin Startup

OCTOBER 4, 2017

Dilution, overvaluation, free money, TNSTAAFL, and how to deal with VCs like a pro. First time founders are typically the most likely to object to dilution when fundraising. They do this to avoid dilution, which on the surface seems like a good idea, but can prove deadly to your start up when you get to the A round.

Dilution 59

Dilution Valuation Equity Balance Sheet 59

www.inc.com

SEPTEMBER 24, 2011

Email address: Home. Besides the future potential earnings youre forgoing, youre also diluting your own ownership in the company. The offering to a consultant may affect your securities compliance in later offerings and will certainly add to further dilution to founders," Durkin says. Email Address: ); ADVERTISEMENT.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

keen.io

FEBRUARY 5, 2013

The next Monday, I received the following email from Kyle. Kyle sent a similar email to Micah that morning, and I crossed paths with Micah as he was leaving the meeting I was about to walk into. Assumption: The pre-dilution amount prior to Series A should be approximately double the amount in this post-Series-A chart.

Salary 50

Salary Equity Startup San Francisco 50

Duct Tape Marketing

MAY 22, 2015

Let me tell you, brand value is diluting. Just call them up or send a follow-up email. This picture here shows how to get reviews on site through email: Tip #2: Give an incentive for review. And it marks an uprise of a generation of advocates and influencers that are a part of the crowd our customers identify with.

Reputation 28

Reputation Management Technical Review Syndicate 28

www.mattbartus.com

SEPTEMBER 24, 2011

We will grant him/her X% fully diluted shares up front, and every time he/she makes an introduction, he/she will vest in 100 shares.” Share this: Facebook Email Reddit StumbleUpon. Send to Email Address. Your Email Address. Post was not sent - check your email addresses! Email check failed, please try again.

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40

Berkonomics

JANUARY 13, 2022

Email readers, continue here…] But what about the pause to celebrate? Others are diluted by subsequent investors to the point where there was nothing for them to celebrate at all in a sale. Then the money…. What most entrepreneurs fail dramatically at is to celebrate the moment. Many fail multiple times.

Dilution 62

Dilution .Net Sales Entrepreneur 62

Berkonomics

MARCH 21, 2019

Email readers, continue here…] Most VC’s look for a 10x opportunity – that is – a ten times increase in the valuation from investment to liquidity event. Your future rounds should be at higher valuations if you meet your plan, making dilution of your equity less onerous at that time.

Hockey Stick 63

Hockey Stick Liquidity Event Valuation Balance Sheet 63

Jason Ball

JUNE 16, 2020

It’s best to avoid a cold email an investor, but if you have to, be sure to do your research first. This means looking at the size investment, stage and sectors they’ve historically invested into and what’s written on their website, and then tailoring your email to showcase how and why you believe your company could be a good fit.

Dilution 34

Dilution Valuation Incubator Portfolio 34

Berkonomics

OCTOBER 30, 2014

Email readers, continue here.] Money: A board of directors is primarily responsible for oversight in the use of and the raising of money for the company. loading the company with too much debt, and diluting the shareholders too early with additional equity investments. Extending the Runway book available at www.berkus.com.

Dilution 94

Dilution Equity Channel Product Development 94