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VC investors: Don’t be greedy even if you can.

Berkonomics

Email readers, continue here…] Take a situation where the VC investors finally see the chance of a return after ten years, with participating preferred and fifty percent of the ownership after several rounds. Here’s an example that will make your heart skip a beat.

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9 Things to Know About Influencing Purchasing Decisions

ConversionXL

The report found email and search advertising were much more effective vehicles for turning browsers into buyers. The researchers informed half of the participants that natural chickens were healthy but less tasty, and genetically engineered chickens were tasty, but less healthy. The other half were told the opposite.

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How to Divide Equity to Startup Founders, Advisors, and Employees

thinkspace.com

You can email me at thnkspc (aatt) impressthenet dot com. P.S. I was having email issues earlier which have since been resolved. If you sent an email already, please resend. Is the preference structure for preferred shareholders at the startup you work at Standard Preferred or Participating Preferred?

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Angels and VCs: Don’t be greedy even if you can.

Berkonomics

And some preferred investors have participation rights, where they take all of the above amounts, and then also convert their shares into common stock and participate again alongside the founders and option holders.

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How to Raise a Seed Round: Three Basic Tips for Founders

Scott Edward Walker

Emailing or cold-calling them generally doesn’t work. Instead, you typically need a “warm referral” (or introduction) from someone they respect and trust — preferably a successful founder whom they have backed. The hard part, of course, is getting in front of “A” investors to pitch your startup.

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Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

We trade emails on the topic of entrepreneurship often. I took money with a 3x participating preferred liquidation preference with 8% compounded interest annually. Coupled with my participating preferred from 1999 and 2000 I had more than $55 million of liquidation preferences.

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Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First

Both Sides of the Table

Once you cross the threshold where their percentage ownership would be worth more than the value of their preference they “convert&# their preferred stock into common stock and take their proceeds pari passu (along side and on the same terms as you) with the common stock holder. An investor recently called me to look at a deal.