Engineer and Liquidation Preference

Equity for Early Employees in Early Stage Startups

SoCal CTO

SEPTEMBER 27, 2011

Memo to CEOs And Founders: Share The Love Consider the proceeds of a $50-million acquisition for a 100-person company that has raised $14 million with a typical liquidation preference: Because of the liquidation preference, the investors get $14 million right off the top. Manager or Junior Engineer 0.2 – 0.33

Early Stage

Early Stage Equity CTO Hire Sweat Equity

Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

APRIL 17, 2011

Kayak was started here in my backyard of Boston… co-founder & CTO Paul English and the product/engineering team is based here in Concord MA. What They Do: Travel search engine. liquidation preference, 6% accumulated dividend (1). Series A-1 Preferred. liquidation preference, 6% accumulated dividend.

Pre-Money Valuation

Pre-Money Valuation Liquidation Preference Dividend Common Stock

The Corrosive Downside of Acquihires

Both Sides of the Table

MAY 13, 2013

Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. Usually the location of the engineers matters great so having offshore engineering makes acquihires unlikely. That’s why liquidation preferences exist – downside protection.

Liquidation Preference

Liquidation Preference Early Stage Retention Lock-up Period

“The Core Value of a Good Leader is Humility:” Sam Schillace, Box Engineering SVP

Hunter Walker

NOVEMBER 23, 2015

Now as SVP of Engineering at Box, he’s had the chance to scale their engineering team and help take the cloud collaboration company public. Earlier this month, I was at an event where Sam mentioned he writes a letter to his Box engineering team every Sunday. What do you look for in a “Box engineer?”

Engineer

Engineer Liquidation Preference AJAX IPO

Memo to CEOs & Founders: Stop Being Such Cheap Bastards

techcrunch.com

FEBRUARY 25, 2010

This is probably why investors’ case for a company to sell early f ocuses exclusively on the founder : in most early-stage acquisitions, the liquidation preferences and deal-sweeteners only work for investors and founders. Why aren’t we surprised when three months later that company can’t hire enough engineers?

Liquidation Preference

Liquidation Preference Founder Option Pool Acquisition

Working for Equity Instead of Cash

genylabs.typepad.com

SEPTEMBER 24, 2011

where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have. Posted by: Atlanta Search Engine Optimization | April 16, 2008 at 07:38 AM. what kind of stock you are getting. what your rights are. Verify your Comment. Previewing your Comment. Posted by: |.

Equity

Equity Technical Review San Jose Stock

Bootstrapping vs. Raising Money

Spencer Fry

APRIL 17, 2017

With no money, how do you expect to have great design, engineering, copy, marketing, content marketing, customer service, operations, and everything else that comes along with running a successful startup. (And, no, I don’t count raising $50k from friends and family as bootstrapping. You’ve raised. But that’s for another blog post.).

Bootstrapping

Bootstrapping Cap Table Liquidation Preference Cofounder

Acquihires 101: Tips for Founders

Scott Edward Walker

DECEMBER 13, 2018

The appeal from the acquirer’s perspective is that – in one fell swoop – it acquires a team of engineers. The acquirer is typically a large successful company, and the target is typically a failing early-stage startup. The appeal from the startup’s perspective is a “soft landing.”. How is the Deal Structured?

Founder

Founder Merger IP Liquidation Preference

Twitter Link Roundup #215 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

MARCH 13, 2014

Good read for entrepreneurs & startup employees on liquidation preferences – crowdspring.co/1neVvzy. 4 Surprising SEM Stats Every E-Commerce Marketer Should Know | Search Engine Land – crowdspring.co/1kD9ZHH. Guerilla tips for raising venture capital | VentureBeat – crowdspring.co/P6hM3O.

Social Media

Social Media Small Business Design Media

Using warrants to pump up your VC valuation

www.mattbartus.com

DECEMBER 9, 2012

I've just seen many startups unhealthily focus on the valuation versus things such as the liquidation preference or board control. I've just seen many startups unhealthily focus on the valuation versus things such as the liquidation preference or board control. Developers, designers, support engineers & more!

Warrant

Warrant Valuation Pre-Money Valuation Term Sheet

Why Co-Founders Are a Startup's Biggest Liability | The Startup Lawyer

thestartuplawyer.com

FEBRUARY 24, 2010

Before I bring in any principals I will have the company all set up, some engineering done and patents pending. Before I bring in any principals I will have the company all set up, some engineering done and patents pending. He obviously never launched a startup and got shafted by a co-founder. Will (should) they insist on it?

Cofounder

Cofounder Founder Preferred Stock Startup

It’s Not Easy applied to Venture Capital

K9 Ventures

OCTOBER 19, 2015

Second-level thinking : when I first started reading this, I felt this was kind of obvious and almost reminded me of how engineers think through things. I imagine that that’s almost like a new thing for several of the wall-street type investors since they typically only invested in common stock in liquid markets. ” .

Venture Capital

Venture Capital Liquidation Preference Valuation Portfolio

What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

FEBRUARY 14, 2016

The increase in companies spreads out great engineering and product talent into many more companies (many not likely to succeed) versus consolidating resources fewer, more transformational companies. Or down rounds might favor earlier-stage investors because the liquidation preferences of later stage investors get reduced.

Valuation

Valuation Down Round Startup Later Stage

How to Be an Angel Investor

www.paulgraham.com

APRIL 28, 2010

When youhear people talking about a successful angel investor, theyre notsaying "He got a 4x liquidation preference." All the search engines are trying toget people to start calling them "portals" instead. Dont spend much time worryingabout the details of deal terms, especially when you first startangel investing.

Angel Investor

Angel Investor Syndicate Syndication Dilution

Interview with Sramana Mitra on 1M/1M Program

Life Beyond Code

SEPTEMBER 27, 2011

When we were looking to talk to investors, Sramana introduced us to multiple investors and acted as an advisor helping us to navigate complex term sheet clauses like tranche financing and liquidation preferences.

Programming

Programming Silicon Valley Bootstrapping Technical Review

How I Pitched My Business and Raised $2.3 Million in VC Funding

Up and Running

MARCH 29, 2017

After about a year of that, we were starting to generate real traction—the kind we would need to raise a “real” seed round where we could hire an engineering team and make a real go of it. I spent a couple months taking phone calls and meeting with potential investors. Those two terms determine how much of the company you’re giving away.

Term Sheet

Term Sheet Venture Capital Liquidation Preference Valuation

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