Remove Employee Remove Equity Remove Preferred Stock Remove Venture Capital
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How to Scale a Venture Capital (or Private Equity) Fund

David Teten

First Round Capital’s forum for portfolio executives is a powerful example of a scaleable resource. – Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. – Create a franchise and license access to it , e.g., the Draper Venture Network.

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Cram Down – A Test of Character for VCs and Founders

Steve Blank

Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. ” On one hand they’re right. You’re not.

Cram Down 414
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Equity for Consultants – Keep it Simple!

www.mattbartus.com

Equity for Consultants – Keep it Simple! posted Feb 3 in Equity , People issues. People tend to underestimate how much record keeping is involved with managing employees and consultants, and this just adds an unacceptable extra burden. Cooley Report Reviews Second Quarter Venture Capital Financing Trends.

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The 5 Key Stages of Equity Funding

Growthink Blog

When seeking equity investments, the source of capital is, for the most part, tied to the stage of capital being raised. You see, equity capital is raised in stages or rounds. The name is derived from the class of preferred stock investors receive in return for their capital. Seed Funding 3.

Equity 88
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What type of entity should I form?

Startup Company Lawyer

C corps, LLCs, and S corps differ significantly in the areas of taxation, ownership, fundraising, governance and structure, and employee compensation. Any company that raises venture financing will need to be a C corp in order to issue preferred stock. Employee Compensation. such as incentive stock options.

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Investor Nomenclature and the Venture Spiral

K9 Ventures

The funding for the incubator of accelerator may come from the principals running the incubator (as I believe is the case for AngelPad , i/o ventures etc.) The incubators invest usually for an equity stake and buy equity at a extremely low valuation (for example, 7% for $15,000, which implies a pre-money valuation of less than $200,000).

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Should Your Startup Give Performance-Based Warrants?

Both Sides of the Table

I’ve heard the following so many times that it still makes me scratch my head, “if those guys are going to get rich off of our backs then we’re going to look like fools if we don’t have equity.&#. I’ve already made clear that I think raising equity from “strategic money&# is an oxymoron.

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