Austin Startup

JULY 6, 2018

Background Reading: Why startups need signals. Re: cash, the more “unbundled” types of accelerators (less formalized, less equity) tend to not provide any cash upfront, but also typically “cost” less in equity, often just 1–2% of your fully diluted capitalization. Anti-Dilution. Originally published at Silicon Hills Lawyer.

Dilution 48

Dilution Startup Technical Review Equity 48

David Teten

AUGUST 19, 2019

Since 2017 we’ve managed $3 million in revenue-based financing, which helps cash-strapped technology companies grow. In 2019 we partnered with several revenue-based lending providers, effectively creating a marketplace. “. Benefits: Non-dilutive, flexible credit offerings that fit SMB or enterprise SaaS. Bigfoot Capital.

Revenue 60

Revenue Technical Review Software Review Equity 60

Both Sides of the Table

AUGUST 14, 2017

Executives run the day-to-day so often the board is more involved as a sparring partner at key intervals. ICOs certainly have a place in startup financing. In fact, as one Twitter commenter observed to what do board do, “Often, not much.” That’s true. The administrative work we actually do at board meetings?

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

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). under $500K).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

View from Seed

DECEMBER 4, 2019

Over the last 10 years, we’ve been in a bull market with considerable froth in late stage financing activity and valuations. The trends described above in VC performance have an upstream effect on Limited Partners which is somewhat counter-intuitive. This would suggest that TVPI would be performing well. LP Constraints.

LP 256

LP IRR Distribution Portfolio 256

David Teten

JANUARY 19, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Capacity Capital, Greater Colorado Venture Fund, Indie.VC, Reformation Partners, UP Fund, Versatile VC. Of the Inc. 5000 companies, only 6.5% return cap.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

OCTOBER 12, 2014

In the old days there weren’t many fights about whether angels would take their prorata rights in financing rounds. People all across the value chain have taken notice including Limited Partners who are the people who invest in VC funds in the first place. Fundraising / Negotiations Startup Lessons VC Industry'

Technical Review 336

Technical Review Later Stage Early Stage LP 336

View from Seed

OCTOBER 28, 2019

But this financing contour description is just a proxy for underlying business metrics. In reality, a pre-seed is “an early round of financing that is designed to help a company achieve certain intermediate milestones PRIOR to the magic combination of strong PMF + meaningful traction.”.

Seed Stage 247

Seed Stage Finance Dilution Early Stage 247

Genuine VC

JULY 19, 2010

Micro VCs will continue to come in many flavors with slightly different strategies, but there are a few distinctive defining characteristics: On a per partner basis, each investor is investing less than $25M in any given fund. The capital deployment velocity is notably higher than a traditional 1-2 investment per partner per year.

Seed Stage 175

Seed Stage Technical Review Dilution Offshore 175

ReadWriteStart

JANUARY 27, 2011

For a more elaborate explanation of the deal, please read my blog post 1M/1M: Alternative Financing For Startups Using A Sales Channel Partner. I have discussed at length why revenue sharing channel deals may serve as perfectly fine alternatives to raising equity (or even complements) because of their non-dilutive nature.

Dilution 114

Dilution Revenue Finance Entrepreneur 114

Both Sides of the Table

SEPTEMBER 10, 2021

And the loosening of federal monetary policies, particularly in the US, has pushed more dollars into the venture ecosystems at every stage of financing. What Has Changed in Financing? Today you have funders focused exclusively on “Day 0” startups or ones that aren’t even created yet. Of course we can’t.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

Feld Thoughts

MARCH 24, 2017

Foundry Group is best known for our investments in startups, but our vehicle currently investing in other venture funds, Foundry Group Next, is off to what we believe to be a great start and I wanted to share an update about it by talking about our new investment in a fund managed by Founder Collective. It starts with the people.

Founder 75

Founder LP Technical Review Seed Stage 75

Startup Professionals Musings

SEPTEMBER 5, 2016

In my experience as an advisor to aspiring entrepreneurs, I often encounter the myth that an initial startup requires investors. Outside funding is not a startup entitlement. Flaws in a business plan are often masked by money, but ultimately will kill any startup. Startups need to stay nimble and adapt to change.

Bootstrapping 120

Bootstrapping Entrepreneur Startup Exit Strategy 120

Both Sides of the Table

DECEMBER 1, 2009

This is part of my ongoing series on Startup Advice. I know this is unconventional thinking but if you want to understand more I cover my rationale on this post about The Most Common Early Stage Startup Mistakes and again in this post covering how to implement startup prenuptials. Take your inventory. Know thy weaknesses.

Hiring 289

Hiring Cofounder Dilution Startup 289

Up and Running

MAY 27, 2014

You may think that when someone offers you money to fund your startup, you should find a way to take their money. You should think of choosing an investor the same way you consider choosing a business partner, because after you take their money, they become a partner in your business. Is your target market new to the investor?

Angel Investor 119

Angel Investor Dilution Accredited Investor Due Diligence 119

The Equity Kicker

MAY 14, 2012

Twice in the last week I found myself coaching founders on how to build a financing plan around value creation milestones so I thought I would share what I said here. Typical value creation milestones for technology startups include: launching a product. July – pilot deal with a major retail partner goes live.

Finance 118

Finance Valuation Venture Capital Dilution 118

rapidrollout.wordpress.com

JANUARY 15, 2011

Web Startup Lessons Advice from a CTO and Entrepreneur Home About Startup Advice: When to Use a Consulting CTO There are not many to be found. Most likely, this is a person who is a serial entrepreneur and was the chief technology officer for two or more web startups. .&# I’ll list other consultants I know about, as well.

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

David Teten

NOVEMBER 17, 2011

This is the third of three blog posts on financial modeling for startups. The first was on best practices in building financial models , and the second was a template financial model for a startup. Download the Startup Options Valuation model here. Valuing startups is a far fuzzier process.

Employee 155

Employee IRR Startup Mexico 155

Austin Startup

MARCH 7, 2021

Austin, Dallas, Houston, San Antonio form a massive startup Megalopolis that is attracting top talent, impact-focused investors, and the most innovative companies in the world. Startups and investors should treat Texas like one big city. These are all potential customers and strategic partners for startups.

Texas 90

Texas San Antonio Houston Dallas 90

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Advisor. ); STARTUP. Financing a Small Business. Financing A Small Business. Personal Finance. Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing. Innovation | Fridays.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

The Next Web

FEBRUARY 27, 2014

George Deeb is the Managing Partner at Chicago-based Red Rocket Ventures , a startup consulting and financial advisory firm based in Chicago. This is typically in conjunction with an upcoming financing or pending takeover offer. This is typically in conjunction with an upcoming financing or pending takeover offer.

Valuation 167

Valuation Forecast Seed Stage .Net 167

www.instigatorblog.com

OCTOBER 23, 2010

Home About Contact My thoughts & lessons learned on startups, entrepreneurship, marketing and other stuff. Changing Equity Structures for Early Startup Employees Tweet Recently someone asked me for advice on how much equity they should give to their early employees. the better the startup will be. 1% is just not a lot.

Equity 41

Equity Employee Startup Vesting 41

Both Sides of the Table

APRIL 25, 2011

It’s nearly impossible to get a services company financed by VCs. They have created two internal technology “products&# and wanted to figure out how they could turn their services business into a product business that could be financed. You’re a small fish. This team is talented. They wanted advice.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

VC Cafe

FEBRUARY 27, 2024

especially if the startup already has a product and revenue? While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. Pre-seed round tends to be the first ‘institutional’ round of funding in a startup. Seed is about showing initial product market fit.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Hunter Walker

MARCH 14, 2019

Across town a different CEO is having a breakfast with her Series A Board partner. You almost spit out your coffee when she lets you know that she’s leaving for a Tier 1 firm but that her partners John, John Jr or Robert will be great stewards of your startup until she has the pull at her new gig to lead your next round.

Cap Table 95

Cap Table Dilution Silicon Valley Portfolio 95

www.mattbartus.com

SEPTEMBER 24, 2011

Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. I can’t tell you how often a client calls me up and says something like this: “Matt, we have this great new consultant who is going to make introductions to us to [pick type of business partner].

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40

David Teten

JANUARY 21, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. VI: Revenue-based financing: The next step for private equity and early-stage investment. This is a summary of: Revenue-Based financing: State of the Industry 2020. His work on VC and small communities can be found at greatercolorado.vc/blog.

Equity 78

Equity Revenue Cofounder Colorado 78

Gust

OCTOBER 8, 2014

Cautionary note: No competent VC is actually fooled when you show up after raising $6M in seed financing and say you’re now raising an A! 5 million was always the classic definition of an A-round between the late nineties (crazy financings aside) and say 2007. It’s hard building a startup. Why the latter?

Cap Table 136

Cap Table Silicon Valley Term Sheet Non-Compete 136

David Teten

AUGUST 21, 2019

Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. Less or no dilution. A company with that mindset is dramatically less risky, because it’s not dependent on the financing markets for continued viability. But should they? Optionality.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

The Next Web

OCTOBER 7, 2013

That’s what a couple of my friends – engineers at Google and Bloomberg who have been following the rise of startup culture with intrigue – told me recently. Startup employees are granted common shares out of something called an option pool. Every time a startup raises capital, all common shareholders are diluted.

Engineer 129

Engineer Dilution Option Pool Vesting 129

David Teten

DECEMBER 2, 2019

You’ve decided to launch a technology-enabled startup with a positive social impact! Now the bad news: some venture capitallists have a bias against startups with an explicit positive social impact, on the grounds that they have a smaller addressable market, and that the founders are not sufficiently focused on creating shareholder wealth.

Technical Review 60

Technical Review SBIR Dilution Silicon Valley 60

View from Seed

JANUARY 28, 2016

On Wednesday, my partner David wrote about how we’ve been using our office space (and network and other resources) to support pre-seed companies. When we talk about seeds, we mean your first outside round of financing at the earliest stages of your business. You can find that here.

Cofounder 120

Cofounder Finance Founder Syndicate 120

Rob Go

JUNE 8, 2014

Raising capital is really difficult, no matter what people say about the influx of seed and early-stage dollars into the startup eco-system. You get a large capital partner involved early who is fully committed to your company. Usually, the dilution is in the 25% range, and certainly at least 20%.

Dilution 69

Dilution Early Stage Angel Investor Venture Capital 69

Startup Company Lawyer

MAY 4, 2009

The driving beliefs behind the Institute are that (1) great founders are often overlooked by the current entrepreneurial ecosystem, and that (2) innovative startups have a dramatic positive effect on the global economy. How to keep your start-up in the sights of both partners and buyers. Exit Strategies. Presentation.

Founder 28

Founder Warrant San Francisco Intellectual Property 28

Up and Running

AUGUST 28, 2013

It’s a numbered list of his answers to 100 frequently asked questions about startups. Having fights with partners in the first year. Worrying about dilution. Business Planning Finance James Altucher Techcrunch' The first answers the question “what is the sign of an amateur?” ” He says: .

NDA 70

NDA Dallas Dilution Revenue 70

Scott Edward Walker

AUGUST 31, 2011

Thanks, Scott Question We’re a startup based in Palo Alto, and we just received a Series A term sheet for a $725,000 investment. Which financing sources should they consider? But more importantly, a good startup lawyer will also discuss with you the business terms, including the structure of the deal.

Silicon Valley 45

Silicon Valley Term Sheet Liquidation Preference Redemption 45

www.seriesseed.com

MARCH 2, 2010

SeriesSeed.com Series Seed Financing Documents Blog Home Documents Blog Archives Subscribe 09/02/2010 Version 2.0   That’s because there are not that many issues to negotiate in a simple equity financing. price based anti-dilution). Then they laugh at you. Then they fight you. Then you win.”

Finance 58

Finance Term Sheet Equity Aggregator 58