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What do you give up when you take outside investors?

Berkonomics

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. There is no middle ground. Resetting your priorities Taking money from these sources involves resetting priorities over time.

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Have you heard the rule of the thirds?

Berkonomics

Email readers, continue here…] Often, if not co-founders, this group is rewarded through issuance of stock options from a pool of available options that usually totals 15-20% of the total company’s equity divided among all employees. So, co-management is the second group to share in the bounty upon a liquidity event.

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Can you be an adaptive business leader?

Berkonomics

Email readers, continue here…] But most importantly, it is the constant hearing of stories by these CEOs of how they were able to adapt to changes in their environment and alter the course of their leadership, adapting to external influences that had changed in their industry or the economy. Every leader has stories to tell.

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What do you give up when taking outside investors?

Berkonomics

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. There is no middle ground. Taking money from these sources involves resetting priorities over time.

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Will your company’s sale be celebration or silence?

Berkonomics

I’ve been involved with well over twenty successful exits and four initial public offerings over the years, some of them with monstrous gains, some more modest. First, there are at least three types of exits. Then in addition, there are the exits that returned some portion of capital, but nothing more.

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The Rule of Thirds

Berkonomics

Email readers, continue here.] Investments in small companies involve a much greater degree of risk than investment in public companies, which provide immediate liquidity if needed and a ready measure of value at any time. Most importantly, the reward is measured by how much added value the total process creates over time.

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The One Thing Every Venture Capitalist Wants

Growthink Blog

selling the company or having it complete an initial public offering). Send the VC partner or associate a "teaser" email. You don't want to send the VC a full business plan or executive summary initially. Rather, you need to send them a "teaser" email to see if they are interested.