Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. Your A round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

The Next Web

AUGUST 12, 2013

It’s part three of a series, cross-posted from his own blog , in which he draws on his experience to offer advice for aspiring entrepreneurs in Europe and beyond. If you want to be an entrepreneur, think like an athlete and define your own mission. You can follow him on Twitter, where he is @ChristianReber.

Cofounder 119

Cofounder CTO Hire Startup Europe 119

Up and Running

JULY 2, 2014

Now, if you’re a savvy investor or entrepreneur, I’m sure your jaw just dropped as you read that. Now, if you’re a savvy investor or entrepreneur, I’m sure your jaw just dropped as you read that. Please add to it in the comments if you have other tips for entrepreneurs! ownership and never dilute. Our attorney should have known.

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

The Startup Magazine

JUNE 1, 2023

There are startups out there that are valued at a billion dollars, but because of employee salaries, assets, etc. Now we’re no longer spending employee manpower on a service that wasn’t helping accelerate the right type of growth we need. they still aren’t profitable. Have you ever walked into a traditional freight brokerage before?

Early Stage 110

Early Stage Los Angeles Silicon Valley Cofounder 110

YoungUpstarts

MARCH 11, 2015

With the daily demands of running a business along with the financial pressures and challenges inherent in early-stage companies, a business valuation may not be the first thing an entrepreneur thinks of when he awakes each morning. The timing will vary depending on the purpose.

Valuation 100

Valuation Stock Options CPA Merger 100

YoungUpstarts

JUNE 20, 2016

by David Osborn , an entrepreneur, public speaker, and author. The foundation of your financial success, it allows you to forecast the income of purchased assets such as employees, benefits, or company stock options. An entrepreneur’s goal is to stream income from multiple sources. Create a Dream Board.

Balance Sheet 189

Balance Sheet Stock Options .Net Stock 189

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Entrepreneur news from reporter Eric Markowitz. Financing a Small Business. Financing A Small Business. Personal Finance. Employee Benefits. a 50-employee provider of e-marketing solutions to small and midsize businesses, based in Needham, Mass. "We Technology | Thursdays.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Gust

JULY 18, 2012

Yet I’ve rarely seen entrepreneurs more fired up than when recounting war stories of startups whose founders had control of the company wrested from them, were forced to take financing or compensation deals on outrageously onerous terms , or worst of all, fired from their own companies.

Stock Options 188

Stock Options SEC Stock Government 188

Both Sides of the Table

FEBRUARY 23, 2015

For some aspiring to be tech entrepreneurs, I often suggest a two-step process, as I argued in this post that “ The First Startup Founder You Need to Invest in Is You.” We did the early round of financing and the founding team walked when the market turned and when the situation got tough. ” (Warren Buffett).

Technical Review 150

Technical Review Liquidation Preference Silicon Valley IP 150

YoungUpstarts

APRIL 6, 2016

Though it has become easier to set up a business now, getting the starting capital still remains a tricky spot for many aspiring entrepreneurs. There are many legal steps to follow while financing your business. Whatever you choose, use tax-deferred growth in accounts to create wealth to finance the capital fund for your venture.

LLC 100

LLC Stock Options Finance Salary 100

Gust

SEPTEMBER 17, 2014

Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. It’s like we need a finance 101 course for entrepreneurs.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

MAY 23, 2010

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. a loan) that is later converted to equity at the time of the next financing. It starts as a debt instrument (e.g.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. The cap is irrelevant if the next equity financing is at a valuation below the cap amount.)

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Tim Keane

JANUARY 12, 2010

Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react. Term-sheets and Valuations: Thinking about Negotiations.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Gust

DECEMBER 8, 2011

I urge all entrepreneurs to consult and develop a good working relationship with a qualified startup lawyer. Determine the allocation of equity among co-founders, early employees or other service providers, and future contributors as applicable, as well as the vesting schedule , if any, that will apply. Offer letters for employees.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Growthink Blog

JULY 2, 2010

It helps with recruiting top management talent, particularly since the value of/likelihood of exercising employee stock options appears greater. That is a lot of money -- and unfortunately precludes most other entrepreneurs from taking this route. Tags: Dave Lavinsky Financing. MILLION in estimated offering fees.

Venture Capital 85

Venture Capital Stock Options New York Angel Investor 85

The Next Web

JUNE 15, 2012

From Silicon Valley to Peoria, Illinois, cash-strapped startups look for inventive way to finance their business – often handing out equity to employees, consultants, vendors, and other service providers. However, if you are thinking about compensating non-employees with equity, make sure to consider the following points: 1.

Equity 116

Equity Stock Options Vesting Stock 116

thebarefootvc

MAY 13, 2015

After taking an economics class in college which sparked my interest in business, I changed my focus to a dual degree in finance and communications, with the goal of combining capitalism with media to make an impact on the world. The hidden cost of this (and employee burnout) is one that any investor is all too familiar with.

Silicon Valley 40

Silicon Valley Tanzania New Jersey United States 40

thebarefootvc

MAY 13, 2015

After taking an economics class in college which sparked my interest in business, I changed my focus to a dual degree in finance and communications, with the goal of combining capitalism with media to make an impact on the world. The hidden cost of this (and employee burnout) is one that any investor is all too familiar with.

Silicon Valley 40

Silicon Valley Tanzania New Jersey United States 40

Startup Company Lawyer

JULY 20, 2009

At some point, however, an entrepreneur will need to formally incorporate a company. Once again, please keep in mind that the documents from typical online incorporation services do not contain IP assignment provisions in connection with the purchase of founders stock or separate IP assignment documents. Issuing stock options.

IP 67

IP Stock Options Preferred Stock Capital Gains 67

Agile VC

FEBRUARY 2, 2012

I’ll focus for now on the business itself, there’s plenty of other info on the web if you care to understand the equity ownership or financing history of Facebook and frankly this has been fairly well known for awhile. ==. Im a former Silicon Valley entrepreneur turned East Coast VC. Facebook, Inc. Read More ».

IPO 100

IPO South Korea Venezuela Revenue 100

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? The barrier between entrepreneur and money (incubators, angels, etc.) is lowered.

Equity 40

Equity Employee Founder Cofounder 40

Small Business Force

JANUARY 1, 2012

Because of this, for the entrepreneur, oftentimes, keeping things in perspective is extraordinarily difficult. You live and breathe the business, day in and day out, dealing with customers, employees and suppliers. So structure something that works for you and for them, whether that be cash or stock options in your company.

Advisory Board 33

Advisory Board Stock Options Small Business Stock 33

ReadWriteStart

JANUARY 28, 2022

Also, equity is utilized to incentivize employees to work together toward a similar goal, whether that objective is to become the next unicorn or to be acquired by a major corporation. Therefore, CEOs have strong reasons to issue stock options. Equity for Employees. 10-15% is an apt equity range for employees.

Valuation 108

Valuation Equity Warrant Common Stock 108

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

Welcome back to Smart Bear Live … the show were Jason speaks with entrepreneurs looking to improve their businesses. How many employees would a medium-sized business have in your definition? Jason: If I’m managing my whole business with this tool, I don’t have 100 employees. They really like the tool.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

venturehacks.com

OCTOBER 21, 2010

Reading on, the term sheet states, “The $8 million pre-money valuation includes an option pool equal to 20% of the post-financing fully diluted capitalization.&# As your lawyer explains that the so-called pre-money valuation always includes a large unallocated option pool for new employees, your stomach sinks.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

venturehacks.com

MARCH 21, 2008

Normal advisors are also assembled by naive entrepreneurs who think the mere presence of an advisory board will create social proof and help them raise money. Super advisors The super advisor can get as much stock as a board member: 1%-2% of a company’s post-Series A stock. Or they bring you a handful of great employees.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

A Smart Bear: Startups and Marketing for Geeks

JUNE 27, 2011

Most entrepreneurs would love to be in a position to have to decide! I just coached an entrepreneur who couldn’t decide whether to accept an offer for selling his business of nine years. Deal B gets you 70% of your number, but your employees are well-compensated both upon signing and with their annual compensation.

Sales 235

Sales Term Sheet Stock Deal Structure 235