Startup Professionals Musings

MARCH 22, 2020

In the interim, there is no market for the shares, and no dividends or interest. Tie payments to your product or service revenue. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. Make sure the money is discretionary.

Management 308

Management Cram Down Angel Investor Equity 308

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

The Next Web

SEPTEMBER 13, 2013

But the problem with this is that most VCs in the Valley, especially early stage ones, only like to invest in companies that are within driving distance from their offices. The rest of Asia is still developing with far more angel and early-stage investors than mid-to-later stage folks.

Asia 132

Asia Silicon Valley India Term Sheet 132

Startup Professionals Musings

MARCH 9, 2018

In the interim, there is no market for the shares, and no dividends or interest. Tie payments to your product or service revenue. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. Make sure the money is discretionary.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

OCTOBER 10, 2014

In the interim, there is no market for the shares, and no dividends or interest. Tie payments to your product or service revenue. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. Make sure the money is discretionary.

Founder 254

Founder Cram Down Angel Investor Equity 254

Tim Keane

JANUARY 12, 2010

  Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors. 3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

AUGUST 1, 2016

Getting investors to trust you with their money is always a challenge, and it’s even more difficult in the early stages, where you don’t have a significant revenue stream, a few customers, or maybe even a product yet. At these stages, it’s all about you, and your ability to communicate and execute effectively.

Due Diligence 120

Due Diligence Intellectual Property Preferred Stock Seed Stage 120

Startup Professionals Musings

NOVEMBER 11, 2015

In the interim, there is no market for the shares, and no dividends or interest. Tie payments to your product or service revenue. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. Make sure the money is discretionary.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

The Startup Lawyer

AUGUST 22, 2011

Whatever the form of control, seed investment is way too early to be even thinking about losing any amount of control of your startup. Dividend (that pays out). This is something you might see in a late stage private equity financing with a company that has a history of generating revenue. Tranched Investment.

Angel Investor 99

Angel Investor Dividend Dilution Cofounder 99

Both Sides of the Table

JANUARY 26, 2013

If you’re a very early stage startup that just raised your first angel money it is very possible that the funding announcement will be your first big tech news. Having strong relationships with journalists will pay you huge dividends over the long haul and benefit your company and your career.

Startup 355

Startup PR Dividend Merger 355

YoungUpstarts

APRIL 22, 2018

This is particularly true in the early stages of a new venture when you may be a solopreneur or working with a very small team. But attending the right conference can pay big dividends both personally and professionally, in both the near and long-term. by Thomas Smale, founder of FE International. Final Thoughts.

Las Vegas 124

Las Vegas Software Review Affiliate Cofounder 124

VC Cafe

SEPTEMBER 26, 2022

A founder should know (more or less) what milestones she can achieve with the current round (in terms of product, revenue, etc). Be intentional about building your team’s culture – it will not only pay dividends in the long run, but also help you filter for fit in hiring and improve employee retention. Say no to more seats.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

Rob Go

MARCH 20, 2013

Is it possible to take seed money and not go for the Series A, etc, and just earn revenue? Hopefully, anyone investing in an early stage private company knows that that liquidity will not come for at least 5-years+. One is to do a royalty based financing, where some percent of revenues goes back to investors.

Bootstrapping 46

Bootstrapping Finance Dividend Vesting 46

ReadWriteStart

JANUARY 28, 2022

The market regards equity as an ownership “share” in a corporation’s income revenue stream. Dividends paid and capital gains realized on a per-share basis provide ordinary shareholders with a way to participate in the profits stream of the company. The establishment of a dividend policy. What is Company Equity?

Valuation 108

Valuation Equity Warrant Common Stock 108

BeyondVC

DECEMBER 15, 2005

On the other hand if you deliver on your promises and have a great base of early reference customers, it will pay huge dividends. While the remaining small % of spend leaves room for new license spending, only a fraction of that will be even available for early stage companies. This takes time but can be doable.

Advisory Board 60

Advisory Board New York Dividend Sales Cycle 60

Gust

MAY 24, 2012

A typical series of Preferred Stock in a venture-backed startup carries a liquidation preference, anti-dilution rights, dividend preference, a separate vote to fill its own seat(s) on the Board of Directors, “protective provisions” requiring the company to obtain a separate vote of the Preferred to take certain corporate actions, and more.

IPO 159

IPO Equity Common Stock Stock 159

www.singlefounder.com

OCTOBER 23, 2010

Go ahead and laugh, but over 95% of Moon River Software’s revenue this year has been from consulting services. The software I sell has made up less than 5% of total revenue in the past 12 months. In the early stages of a company, this can be critical. Over time as the company grows, it is worth more and more.

Software Review 40

Software Review Software Startup Massachusetts 40

abovethecrowd.com

APRIL 20, 2016

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. Examples of dirty terms include guaranteed IPO returns, ratchets, PIK Dividends, series-based M&A vetoes, and superior preferences or liquidity rights. Competition also has access to capital.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40