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Beware of Premature Merge Elation

Both Sides of the Table

My recommendation to our lead partner looking at the deal, “Pass. The only thing worse than your early-stage company buying another early stage company is you trying to pull off a merger of equals. If they’re early stage like you, they’re likely just dogs. million uniques.

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Quick Post on Post-Money Valuations

Rob Go

When I first started out as a VC nearly 9 years ago, most early stage company valuations were expressed as pre-money valuations. Founders also had to do a little math on the new option pool to really understand what their ownership would be post investment, since it was typically taken out of the company pre-money.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

But in business, you want a lot of partners. In the private equity universe, most Partners have primary training as deal-makers, not as managers. See Bessemer Venture Partners’ A comprehensive guide to security for startups. Cobalt for General Partners helps GPs to optimize their fundraising strategy. 1) Manage the firm

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Careful about equity and options in early stage businesses

Berkonomics

Here’s an example: First, a brand-new enterprise is often formed from the efforts of several “partners”, each with an expertise valued by the others. First you must create a stock option plan using your attorney, which must be registered in many states as a security offering. (The There are some rules.

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Most Common Early Start-up Mistakes

Both Sides of the Table

Assuming normal valuations at fund raising rounds you’ll be down to 6-12% after you’ve created a stock-option pool and raised capital. But these people seldom make retirement money from the stock options on these companies. This is a BIG mistake many early stage companies make.

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What to expect before accepting the offer to become Engineer #1 at a startup

The Next Web

In exchange, the engineer is likely offered the promise that his or her option shares will one day turn into big money. However, at the very early stage, they are taking as much risk with their future as the founders. Startup employees are granted common shares out of something called an option pool. Engineer #1?

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ProfessorVC: Touched by an Angel

Professor VC

A partner from the law firm (sponsor, covers the drinks and food) tosses out some softball questions to the panelists, the audience chimes in with Q&A and finally, culminates with the meet and greet where the panelists are flooded with business cards and pitches on the next great thing, which is often very similar to the last great thing.