Both Sides of the Table

MAY 30, 2015

If a VC tried to do this to you on an early-stage deal they would get such a bad reputation that no other VCs or entrepreneurs would work with them. On VC financings this term is explicit so entrepreneurs understand they’re getting screwed.

Liquidation Preference 150

Liquidation Preference Ratchet Angel Investor Entrepreneur 150

Up and Running

JUNE 25, 2014

Hopefully I’ll be able to add some value with some of the financing needs that your businesses may need. Then we look at what the small business financing needs. “How do I tackle my financing needs as a startup?” I think there is a process where you can participate via Twitter, or ask questions.

Small Business 89

Small Business SBA Finance Bankruptcy 89

Both Sides of the Table

SEPTEMBER 5, 2012

This time by the efforts of Adeo Ressi to introduce a new kind of structure called “ convertible equity.” My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

Business Plan Blog

NOVEMBER 7, 2013

During the early stages of a business, the founding team should discuss the startup’s funding strategy. If initial startup costs are low for a first-time entrepreneur, friends and family financing should be considered. The investment terms are usually more flexible and potential exists for numerous equity or pay back methods.

Startup 77

Startup Early Stage Finance Equity 77

Reid Hoffman

JANUARY 26, 2021

One of the things a financing round brings is an opportunity to strengthen the startup’s overall network. For example, a classic example of the conflicting interests of management and investors, which an independent board member can help mediate, is the approval of equity grants to management and employees.

Startup 36

Startup Equity Early Stage Green 36

Duct Tape Marketing

SEPTEMBER 9, 2022

Brad has been an early-stage investor and entrepreneur since 1987. He's been an early stage investor in entrepreneur since 1987. When they think about the board, including reasons why early stage entrepreneurs and startup entrepreneurs don't create boards. Early board can be very powerful.

Startup 83

Startup Cofounder Early Stage Founder 83

aweissman.com

JANUARY 30, 2010

There is an amazing wealth of innovation around early stage venture financing, most of which developed in just the past few years. 3) Strengthens the First Round brand and reputation. Brand equity is hard to build, and even easier to lose. Theyve now got a pool of founders equity that they can enhance, or devalue.

Early Stage 46

Early Stage Entrepreneur Cofounder Framework 46

www.quora.com

SEPTEMBER 22, 2011

Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation Stock Options Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? This ties into this Paul Graham article: [link] /equity. This answer. link] 8/12/15.

Equity 40

Equity Employee Founder Cofounder 40

David Teten

DECEMBER 2, 2019

And of course, effectively all venture capitalists are going to require some equity for their investment. I emphasize my focus here is organizations which are backing for-profit companies and do not take equity. Their foci include addressing environmental sustainability, racial and gender equity, economic development concerns, etc.

Technical Review 60

Technical Review SBIR Dilution Silicon Valley 60

Professor VC

NOVEMBER 19, 2009

And now I know exactly where I want to spend my time" "This internship truly provide me an entry point into the private equity world. If you have a reputation for cutting corners, not treating employees or partners right, it will become very difficult to do business. I also teach Entrepreneurial Finance at San Jose State.

San Jose 43

San Jose Silicon Valley Las Vegas Venture Capital 43

www.readwriteweb.com

OCTOBER 7, 2007

But when done well it can really help get a company going fast, professionally and without the founders having to give up much (if any) equity - or bankrupting themselves. The founders may believe they are onto such a good idea that they don’t want to give up any equity. To keep the equity we out-sourced.

Bootstrapping 41

Bootstrapping Offshore Startup EC2 41

The Next Web

MARCH 2, 2014

This was reported as being untrue by British Private Equity & Venture Capital Association (BVCA) about a year ago. External constraints or the lacks of resources (finance, skills, business idea) are relative minor reasons. It teaches you just how mundane the everyday existence of an early-stage startup is.

Europe 163

Europe South Korea San Francisco Portugal 163

Startup Professionals Musings

JULY 12, 2012

We are talking about angel investors here, meaning people who invest their own money in early-stage startups for a share of the equity. This type of business is usually based on the expert skill and reputation of an individual or small group. This is definitely the space for bootstrapping and personal networking.

Angel Groups 237

Angel Groups Angel Investor Early Stage Startup 237

Startup Professionals Musings

APRIL 14, 2011

We are talking about angel investors here, meaning people who invest their own money in early-stage startups for a share of the equity. This type of business is usually based on the expert skill and reputation of an individual or small group. This is definitely the space for bootstrapping and personal networking.

Angel Investor 217

Angel Investor Angel Groups Early Stage Startup 217

Feld Thoughts

JULY 14, 2015

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. By the first quarter of 2016, the late-stage financing market had changed materially. Investors were becoming nervous and were no longer willing to underwrite new Unicorn-level financings at the drop of a hat. This is uncharted territory.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Gust

JULY 1, 2012

We are talking about angel investors here, meaning people who invest their own money in early-stage startups for a share of the equity. This type of business is usually based on the expert skill and reputation of an individual or small group. This is definitely the space for bootstrapping and personal networking.

Angel Groups 143

Angel Groups Angel Investor Early Stage Startup 143

Startup Professionals Musings

APRIL 3, 2010

We are talking about angel investors here, meaning people who invest their own money in early-stage startups for a share of the equity. This type of business is usually based on the expert skill and reputation of an individual or small group. This is definitely the space for bootstrapping and personal networking.

Angel Groups 121

Angel Groups Angel Investor Early Stage Later Stage 121

www.businessinsider.com

SEPTEMBER 6, 2012

Many if not most seed investments in startups these days are done in the form of convertible debt, which is a loan that can convert to equity in a subsequent financing. Its simply not in Google Ventures self-interest to behave in the way Graham alleges it has, Maris said: "We work really hard on our relationships and our reputation.

Silicon Valley 54

Silicon Valley Startup Valuation Venture Capital 54

www.vccafe.com

MARCH 11, 2013

VC Cafe covers early stage Israeli and European tech & mobile startups. easy business finance software. YCombinator Series AA Equity Financing Documents. Seed Stage Valuation Guide. Founder Equity Issues. Venture Hacks equity section. Legal, Equity, etc. VC & Startup Resources.

Software Review 53

Software Review Technical Review Startup 53