thebarefootvc

NOVEMBER 17, 2014

The combination of mobile technology, sensors, robotics, and data analytics will create businesses that can empower billions of people around the world through decentralized and distributed networks where the “middlemen” are no longer required. Now expand this to a cross border world.

Kenya 109

Kenya Africa United States Global 109

View from Seed

SEPTEMBER 14, 2021

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. Was this a lost decade for venture capital? The power-law curve is when the distribution of returns is heavily skewed.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

YoungUpstarts

JULY 16, 2020

If you want your business to grow faster by taking on investors and raising venture capital, you might want to switch your business entity from an LLC to a C Corporation. The C Corporation is often the best choice for companies that want to take on capital from investors or sell shares of stock.

LLC 255

LLC Bankruptcy Venture Capital Stock 255

View from Seed

SEPTEMBER 14, 2021

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. Was this a lost decade for venture capital? The power-law curve is when the distribution of returns is heavily skewed.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

Agile VC

OCTOBER 23, 2012

For example, if there were no S&P 500 ETFs or index mutual funds an investor could easily buy a “synthetic” equivalent by buying shares of all the S&P 500 stocks in proportion to each company’s weighting in the index. Startup outcomes are a power law distribution rather than a standard distribution.

LP 176

LP Accredited Investor Carried Interest Portfolio 176

VC Adventure

AUGUST 15, 2018

Back in the olden days of venture capital, company boards had wide discretion in pricing company options. It was and is imprecise science but – at least in the case of venture backed startups – there wasn’t much harm in an option being priced low. I’m not giving legal advice in this post.

Valuation 48

Valuation Common Stock Cap Table Software Review 48

Transformify

MARCH 14, 2020

At the same time, the stock markets collapsed, and most businesses already report skyrocketing losses, unmet revenue targets and insufficient stock due to production slow down in China, India and the rest of the world. Over the last decade, a new trend emerged as tech talent was scarce where it was needed the most.

Hiring 98

Hiring Bulgaria Italy Spain 98

Steve Blank

MARCH 19, 2009

Now with a new infusion of $8 million dollars of venture capital, SuperMac had been resurrected from the dead and was attempting to restart. The company was the laughing stock of the Mac market. They had an existing distribution channel and their dealers and customers thought they knew who the company was and what it stood for.

Silicon Valley 146

Silicon Valley Software Review Technical Review RSS 146

Up and Running

OCTOBER 30, 2017

Begin by taking stock of yourself and your situation: Why do you want to start a business? Depending on the size and goals of your venture, you may need to seek financing from an “angel” investor or from a venture capital firm. Investment and lending options include: Venture capital. Sabrina Parsons.

Venture Capital 166

Venture Capital Business Plan Limited Liability Company Finance 166

Growthink Blog

JANUARY 24, 2011

I get the same question a lot from entrepreneurs raising equity capital (venture capital or angel funding). The question is whether they need to issue common or preferred stock. The answer depends on how and what rights are defined in the preferred stock. read more.

Preferred Stock 93

Preferred Stock Stock Common Stock Liquidation Preference 93

VC Cafe

APRIL 23, 2012

Venture capital and other forms of seed funding have been crucial for the development of the best online colleges. Many third-party educational organizations exist to maintain online schooling ventures, and these organizations typically receive most of their funding from venture capital firms. By Estelle Shumann*.

Venture Capital 96

Venture Capital Michigan Seed Capital Programming 96

Steve Blank

MARCH 31, 2014

As the venture capital business has come roaring back in the last 5 years, startups are awash in available capital. The stock market clearly values companies that can deliver disruptive innovation. For example, Coke added snack foods, which could be distributed through its existing distribution channels.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. Is the revenue dependent on a concentrated set of distribution partners or platforms that put future revenue at risk? Two-f **g-billion! What a disaster!

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

View from Seed

SEPTEMBER 14, 2021

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. Was this a lost decade for venture capital? The power-law curve is when the distribution of returns is heavily skewed.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

VC Cafe

MAY 23, 2023

Chegg, which lost over 40% of its stock value after the CEO remarked that the company’s tutoring product is being challenged by ChatGPT, has been working hard to incorporate generative AI features into their own product with GPT-4 in the form of CheggMate , but so far with little results. .

Generative AI 165

Generative AI Artificial Inteligence ChatGPT API 165

VC Cafe

SEPTEMBER 16, 2021

I’ve also shared my insights with Techcrunch, in “ 5 creator economy VCs see startup opportunities in monetization, discovery and much more “ As venture capital investors, one question we think about a lot at Remagine Ventures is “where are the opportunities for startups in the Creator Economy?”

Startup 207

Startup Social Media Venture Capital Audio 207

Scott Edward Walker

JULY 7, 2011

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. Redemption Rights What Are Redemption Rights? What Does a Redemption Rights Provision Look Like?

Term Sheet 49

Term Sheet Redemption Venture Capital Preferred Stock 49

www.inc.com

SEPTEMBER 24, 2011

Why Arizona Bay started taking stock from its customers instead of cash. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Venture Capital Firms. During the first Internet boom, companies that provided services to tech start-ups were all too happy to work for stock. Will Work for Equity.

Arizona 40

Arizona Equity Iowa Venture Capital 40

VC Adventure

AUGUST 16, 2020

Others feel less strongly about it and either don’t distribute options below a certain level of employee (say manager level) or have programs where employees need to be at a business for a period of time before they earn the right to have an option grant. And it would be the more fair thing to do, but I digress).

Programming 149

Programming Vesting Equity Software Review 149

Steve Blank

JULY 19, 2010

The customary vesting model has founders vest their stock over 4-years , and when the founding CEO gets in over their head the VC’s bring in professional management. The fallacy is believing that a founders value is evenly distributed over four years. It’s time to rethink how we vest stock for founding CEOs. The New Deal.

Vesting 251

Vesting Liquidity Event Venture Capital Founder Vesting 251

Gust

DECEMBER 22, 2011

Copyright is the right to control reproduction and distribution of original works of authorship fixed in tangible forms of expression. (What do you suppose the market value would be of the trademark “Facebook,” its lowercase “f” symbol, or the Facebook.com domain?).

Intellectual Property 149

Intellectual Property Technical Review Software Review IP 149

VC Cafe

OCTOBER 4, 2022

In the short term, these new creative AI technologies are starting with the low hanging fruit of the ‘creative class’ Whether it’s copywriting, design, stock photography, video editing, voice acting and others, AI can start offering a cheaper alternative to labor and service marketplaces.

Generative AI 204

Generative AI Artificial Inteligence Video Architecture 204

Startup Company Lawyer

MARCH 14, 2010

If you don’t, please educate yourself on this site, Venture Hacks and the term sheet series by Brad Feld/Jason Mendelson, among other places. If you really want to understand the nuances in venture capital financing documents, please review the NVCA model venture capital financing documents. . under $500K).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

This is going to be BIG.

AUGUST 25, 2011

The issue was that for the last two weeks in August, there were no VCs around to pitch, no distribution partners to meet with for biz dev deals, and seemingly no one else around actually working for me, the non-technical co-founder to push ahead toward milestones. Second, there was way too much to do. Look ahead to the conference schedule.

Technical Review 114

Technical Review Software Review PR Cofounder 114

Startup Professionals Musings

JANUARY 16, 2011

But before you jump on the bandwagon, you should consider the advice I saw recently from the maven of venture capital, William H. Usually a small company can sell about 20 percent of its stock in an IPO. Of course, you’re going to have to perform well to make that stock useful in the acquisitions process.

IPO 223

IPO Social Media Media Exit Strategy 223

www.inc.com

SEPTEMBER 24, 2011

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. I advise my clients that you offer stock only after youve searched your heart and soul and cant come up with a way to pay with anything else," says Thomas H.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Gust

OCTOBER 17, 2012

In addition, angels were up against a selection problem: All the best entrepreneurs and opportunities would naturally gravitate to the best venture capital funds, leaving only the “scraps” for angel investors. This is absolutely competitive with venture capital returns. The distribution of returns from the different U.S.

Angel Investor 152

Angel Investor Venture Capital Seed Stage Silicon Valley 152

Mucker Lab

JANUARY 1, 2014

VC’s start investing in technology-enabled “offline” businesses (distribution, services etc) – most of whom would never have gotten venture money 3 years ago. Yahoo stock drops back to where it was BM (before Marissa) because no matter how much prettier and usable the site is, still no one clicks on banner ads.

Seed Stage 84

Seed Stage Early Stage Distribution Bootstrapping 84

Steve Blank

SEPTEMBER 25, 2014

Larry had the DNA I’ve seen common with all the successful entrepreneurs I’ve backed in my 25 years of Venture Capital work—only he had a more exaggerated case than most. Being distributed/network ready (even though Ethernet was just barely coming into use in the enterprise). I wonder if he took stock or cash.

Technical Review 333

Technical Review Venture Capital Software Review Database 333

Growthink Blog

SEPTEMBER 13, 2017

Many distribution, manufacturing, and service businesses fit this description. For starters, because of it way too many private companies just don’t do any kind of financial reporting whatsoever.

Harvest 48

Harvest IP Software Review Forecast 48

VC Cafe

OCTOBER 31, 2022

This is largely due to several major stock market crashes and global economic uncertainties. Mature startups with proven business models and the potential to reach the public markets within a few years will be the safest place to park any new venture capital that comes into the ecosystem. CVCs have participated in 25.6%

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

Mucker Lab

JANUARY 1, 2014

VC’s accelerate investments in “internet of things” except sometime in Q4, wake up and realize it’s no different than “consumer electronics” – and that we still need to innovate around the manufacturing infrastructure, distribution economics, and consumer liability of the consumer goods business to really make this a venture fundable category.

Seed Stage 60

Seed Stage Early Stage Distribution Bootstrapping 60

Startup Company Lawyer

MARCH 12, 2009

Any company that raises venture financing will need to be a C corp in order to issue preferred stock. However, S corp losses can only be used to offset personal income up to the founders’ basis in the S corp stock, which may decrease the utility of the S corp election. citizen/resident stockholders. Fundraising.

LLC 61

LLC Stock Options Preferred Stock Stock 61

Both Sides of the Table

FEBRUARY 6, 2016

Is it a bad thing when public stocks get eviscerated (given USV has a few that have)? And there was a great discussion about generational change at Venture Capital firms handled so well by Benchmark & Sequoia and how Fred is thinking about it. Do you need to be technical to be a great VC? Worst system.

China 150

China United States Turkey Kansas 150

Steve Blank

MARCH 18, 2011

The goal was to get your firm public as soon as possible using whatever it took including hype, spin, expand, and grab market share – because the sooner you got your billion dollar market cap, the sooner the VC firm could sell their shares and distribute their profits. Filed under: Technology , Venture Capital.

Internet 334

Internet IPO Silicon Valley Agile 334

thebarefootvc

NOVEMBER 17, 2014

The combination of mobile technology, sensors, robotics, and data analytics will create businesses that can empower billions of people around the world through decentralized and distributed networks where the “middlemen” are no longer required. Now expand this to a cross border world.

Kenya 40

Kenya United States Global Cofounder 40

Tim Keane

JANUARY 12, 2010

  I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.]   Say I invest $1MM in a company and receive 40% of the stock.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68