5 Equity Crowdfunding Reflections Before You Sign Up

Startup Professionals Musings

Most of the experience so far has been cash versus the equity feature defined by the JOBS Act – Equity Crowdfunding (Title III) , introduced back in 2016 with 685 pages of rules. In equity crowdfunding, no investor is representing their own interest.

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A Conversation With Dan Caruso About Gender Equity at the Boulder Country Club

Feld Thoughts

The past few months’ events have led us all to soul search on equity, with the primary focus being racial equity. They seemed surprised that this would be viewed as a gender equity matter. They are positioning this as a golf tee time preference instead of a gender equity issue.

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Protected: Techstars Foundation Accelerates Equity

David Cohen

To view it please enter your password below: Password: The post Protected: Techstars Foundation Accelerates Equity appeared first on Hi, I'm David G. This content is password protected.

Equity Investment Platform Preparation Best Practices

Startup Professionals Musings

If you are one of the thousands of entrepreneurs who need equity funding to get your startup going (no loans to repay), you are probably overwhelmed at the prospect of finding, contacting and pitching to the huge number of qualified angels and investment groups around the country. Startups that have a name but are not incorporated have no credible basis for an equity investment. crowdfunding entrepreneur equity investment platform startup

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Some Good Startups Don’t Qualify For Equity Investors

Startup Professionals Musings

Angel investors and venture capitalists don’t make equity investments in nonprofit good causes. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy. equity nonprofit philanthropy section 501(c)(3

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Diversity, Equity, Inclusion Solutions (DEIS) Practicum

Feld Thoughts

Please join us for the Diversity, Equity, Inclusion Solutions (DEIS) Practicum. The post Diversity, Equity, Inclusion Solutions (DEIS) Practicum appeared first on Feld Thoughts.

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Progress on the Discussion Around Gender Equity at the Boulder Country Club

Feld Thoughts

After plenty of feedback and activity, I’ve decided to take down the post from last week titled A Conversation With Dan Caruso About Gender Equity at the Boulder Country Club. While often difficult to sort through and resolve, I think it’s vital to address equity issues at all levels.

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Texas Gets A New Tech Equity Program

Austin Startup

Texas Gets A New Tech Equity Program was originally published in Austin Startups on Medium, where people are continuing the conversation by highlighting and responding to this story. tech texas equity diversity-and-inclusion

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Techstars Equity Back Guarantee

Feld Thoughts

Today Techstars announced an “ equity back guarantee ” for any company that goes through the Techstars program starting in 2015. One day we started bouncing around the cliche “let’s put our money where our mouth is” which quickly morphed into “let’s put our equity where our mouth is.” So we decided to launch an equity back guarantee. The post Techstars Equity Back Guarantee appeared first on Feld Thoughts.

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6 Ways To Measure Brand Equity (And Build It)

YFS Magazine

Without an understanding of your brand's current equity, you can struggle to set metrics for improvement. Here's how to measure brand equity and build it. Editor Picks Grow Marketing & Sales brand brand development brand equity brand strategy branding

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The Racial Equity Ecosystem Pledge

Feld Thoughts

I’ve agreed to: Do a monthly podcast called Equity.District with Rodney on racial equity in entrepreneurial ecosystems and other issues around racial equity in entrepreneurship. Help organize and co-host a Racial Equity conference inclusive of Rodney’s network, my network, and anyone else who wants to participate. The post The Racial Equity Ecosystem Pledge appeared first on Feld Thoughts. Today, I participated in the Juneteeneth 4.0

7 Equity Crowdfunding Risks Feared By Many Investors

Startup Professionals Musings

In fact, there are many types of crowdfunding, including donations, reward, pre-orders, loans, and equity. Professional investors, and more serious entrepreneurs, are most interested in money for ownership of a portion of the business (equity), and equity crowdfunding is still a small portion of the total (less than 10 percent), but growing. crowdfunding equity funding qualms startup

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What Some Are Using Home Equity Loan/HELOC Proceeds For

YoungUpstarts

Home equity loans and HELOCs provide a faster financing opportunity for consumers. A spouse or child of an individual who needs assisted living services uses the equity built-up into the home to cover the costs. Others finance matters HELOCs home equity home equity loans personal financeThe products offer immediate payments for any purposes without restrictions.

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New Venture Equity As Compensation Is A Long-Term Bet

Startup Professionals Musings

It never hurts to ask in a job interview what stock options are available, and don’t fall for the offer which promises to “work out the equity terms later.” Any offers of equity compensation before the first round of institutional capital should be considered purely speculative. Wouldn’t you like to be one of the lucky people who joined Google and Facebook when these were startups, and now be a multi-millionaire or better?

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Are You Getting Your Fair Share Of Startup Equity?

Startup Professionals Musings

So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone. Each co-founder should get equity for value, based on these key variables: Lived a key role in a previous startup. Major equity in a startup that goes nowhere is not my idea of fun.

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Raising Money Using Convertible Equity

YFS Magazine

Lately, more founders are inquiring about convertible equity. Finance Grow convertible equity investment pitch money raising startup capital seed funding seep capitalSome wonder if it is a good replacement for convertible debt (which has become ubiquitous in seed stage startup funding).

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A VC Puts On His Equity Crowdfunding Hat

YoungUpstarts

It’s been about three months since equity crowdfunding was opened up to all Americans. This change means that virtually any individual, not just the wealthy, will have opportunities to make equity investments in early stage companies. The entrepreneurs I mentor ask me frequently about equity crowdfunding. If I were an entrepreneur seeking funding, here are some of the things I would think about in considering equity crowdfunding as a fit for my company: 1.

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Startups Should Be Responsible for Explaining Equity to New Employees

View from Seed

When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. Of late, I’ve encountered numerous potential startup candidates and newly hired employees who have no idea what their equity means. It falls on the hiring company to thoroughly explain equity options to their new employees.

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The Difference between Debt Financing and Equity Financing: Which Is Right For You?

YoungUpstarts

When you’re looking for extra funds, there are typically two options: debt financing and equity financing. It’s important to understand the difference between debt financing and equity financing so when it comes time to get additional funding, you know which is the right fit for your business and how to get it. Equity Financing. Equity financing is provided by an investor instead of a lender. Others debt financing equity financing

For Equity Investors, A Startup Has To End To Win

Startup Professionals Musings

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Equity is stock, but private company stock has no market value until the company goes public or is sold or merged with another company. Find a private equity firm or friendly individual. entrepreneur equity investors IPO startup exit

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Agio On Hedge Fund Cybersecurity And The Difficulty Of Securing Private Equity Firms

YoungUpstarts

When thinking about how to start a private equity firm or a hedge fund, security should be on the list of priorities. Both financial service institutions have to handle a lot of sensitive data as well as monetary assets, which means that hedge fund cybersecurity or private equity cybersecurity is an area that needs a lot of attention. While both private equities and hedge funds pose a challenge when it comes to cybersecurity, it’s private equity firms that have it more difficult.

Business Loan vs Equity Financing: How to Fund Your Startup

ReadWriteStart

However, out of all startup funding options, the two most popular methods are Loan and Equity. The post Business Loan vs Equity Financing: How to Fund Your Startup appeared first on ReadWrite. When it comes to raising money for your startup, there are several ways of doing it. Both types of loans are very different from each other, and sometimes it becomes challenging to choose the right option for your business. […].

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5 Things To Consider Before Selling To A Private Equity Firm

YoungUpstarts

by Adam Coffey, author of “ The Private Equity Playbook ” . You speak to trusted friends and personal advisors about how you should go about doing this (perhaps your lawyer or accountant), and before you know it, you stumble upon an important player in the private equity game: the investment banker. In this article, we’ll look at five things to consider before selling to a private equity firm. It can be very lucrative to partner with private equity.

CMO CTO COO Equity and Compensation

SoCal CTO

I was just asked about a particular startup situation (seed stage, CMO hire, non-founder) and particularly what compensation and equity is appropriate. I know a lot more about CTOs specifically CTO Salary and Equity Trends 2009-2011 , Visualization of Startup CTO Equity and Salary Data , Startup CTO Salary and Equity Data , but I've previously written about the issues with Equity for Early Employees in Early Stage Startups.

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Equity-Only CTO and Equity-Only Developers

SoCal CTO

Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). And he was still in the process of raising additional capital, so it was equity only. However, when I told him that the level of engagement required from me and the fact that equity-only development was required, he seemed to be a bit offended. There are cases where I will do equity-only deals.

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10 Partner Qualities to Test Before Sharing Equity

Startup Professionals Musings

entrepreneur startup co-founder partner equity businessA while back I talked about how and where to find a co-founder in “ For a Startup, Two Heads are Always Better Than One.” The feedback was good, but some readers asked me to be a bit more specific on attributes that might indicate an ideal startup partner. Even if you are looking in all the right places, it helps to know what you are looking for.

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8 Secrets for Maximizing Startup Equity and Control

Startup Professionals Musings

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. startup control equity bootstrapping Rich Christiansen business When someone asks me for the best way to fund a startup, I always say bootstrap it, meaning fund it yourself and grow organically.

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Should you include your sweat equity in a business plan?

Berkonomics

The post Should you include your sweat equity in a business plan? Investors love it when entrepreneurs draw little or no money from their startups.

Don’t Expect An Equity Investor For Your Non-Profit

Startup Professionals Musings

What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy. equity funding investor non-profit philanthropist Angel investors and venture capitalists don’t invest in non-profits.

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Reasons For Surge In Mexico’s Private Equity Industry

YoungUpstarts

For years Mexico lagged behind a lot of other Latin America countries when it came to private equity. While the likes of Javier García Teruel Avila has been a prominent figure in private equity in his homeland for years, the market means there are even more opportunities for successful private equity investors such as him to take advantage of. There’s no doubt that the Mexican government are largely to thank for the country’s rise in private equity.

DealMarket.com – Making Private Equity A Big Deal

YoungUpstarts

Online platforms that connect startups and entrepreneurs are common, but one that connects private equity professionals? But DealMarket ( www.dealmarket.com ), launched in March this year, looks set to be the way that private equity and investment types will work in the future. “ DealMarket has been designed by private equity professionals for private equity professionals,&# says DealMarket co-founder and CEO Celine Fillistorf, who hails from Zurich, Switzerland.

Get the Most Startup Funding Using Your Home Equity

The Startup Magazine

Bootstrapping your startup often means you scrape together your cash, and often tapping your home equity value. It’s the location, height, view, lights and various other factors that go in to determine the home equity value of any private place. Besides the above significant points, finishing and woodwork in the house is also a point taken into consideration for home equity appraisal of a residential property.

How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. Below, Lee Hower offers advice for approaching these equity discussions objectively and properly. As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Sometimes co-founders put off the equity split question for some time.

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Are You Ready for Equity Based Crowdfunding?

Up and Running

Then, the unveiling of the Securities and Exchange Commission’s proposed equity crowdfunding rules reveals a panacea for growing your business’s coffers. Donation and equity crowdfunding both appeal to the public’s desire to participate collectively in fulfilling others’ entrepreneurial visions. Equity crowdfunding vs. donation crowdfunding. Equity crowdfunding differs from donation crowdfunding in two major ways. Cover Upfront Costs for Equity Crowdfunding Offering.

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CTO Salary and Equity Trends 2009-2011

SoCal CTO

Todd Gitlin of Safire Partners - a go to resource here in LA for recruiting C-level positions at startups - was nice enough to compile some data again this year (see last year's Startup CTO Salary and Equity Data ). CTO Salary and Equity Comparison My guess is that most people who come here are going to be Founders, CEOs and CTOs who want to compare salary and equity of the CTO Position in their organization vs. their peers.

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Debt Or Equity To Fund Your Start-up: Which Is Better?

YoungUpstarts

Loan financing and equity investment are two common methods of funding a new business start-up, assuming you do not have the capital on your own. However, if you would rather share the risk, mitigate debt obligations and bring in top-level experts, invite equity investors. With equity investment, you do not have to repay the money. A key reason to take on equity investment is to share the financial risk of operating the business. By Jenny Q.

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Equity Compensation at a Startup is a Big Gamble

Startup Professionals Musings

It never hurts to ask in a job interview what stock options are available, and don’t accept an offer which promises to “work out the equity terms later.” Any offers of equity compensation before the first round of institutional capital should be considered purely speculative. compensation entrepreneur startup employees equity businessWouldn’t you like to be one of the lucky people who joined Google and Microsoft when these were startups, and now be a multi-millionaire?

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Should You Offer Equity Compensation to Employees?

Up and Running

Of course, not every equity compensation story is a David Choe Story. If you’re thinking about extending equity to an employee or a vendor (as in the example above), you should know that the topic is multi-faceted. In this article, I’m going to examine: What equity compensation is. Different types of equity compensation. Good scenarios for offering equity compensation. Bad scenarios for offering equity compensation. Equity compensation alternatives.

Private Equity and Venture Capital Origination Best Practices

David Teten

The post Private Equity and Venture Capital Origination Best Practices appeared first on David Teten. Origination Private Equity Venture CapitalI’m speaking at Wells Fargo’s Dec. 3, 2019 SBIC Symposium on “Origination Best Practices” I welcome feedback on my draft deck: Here’s a related deck I prepared on origination best practices for venture capitalists: If this was helpful to you, please sign up for my newsletter.

Equity for Early Employees in Early Stage Startups

SoCal CTO

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept. Early Employee Equity is an Art I somewhat agree with Fred Wilson in Employee Equity: How Much? Equity Formulas While it's somewhat an art, there has been a lot written about how you can look at equity compensation.

Founder's Dilemmas: Equity Splits

Startup Lessons Learned

Having seen these dilemmas derail countless startups, I wish every entrepreneur and prospective founder would read this book." - Eric The following is an exclusive excerpt which sets up a common pitfall regarding equity splits. In Noam’s dataset, 73% of founding teams split equity within a month of founding, a striking number given the big uncertainties early in the life of any startup. Setting the early equity split in stone is one of the biggest mistakes founders can make.

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Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business. Jane and Dick each brings a similar level of skill and capability to the business, making it easy for them to agree to a 50/50 equity split.

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An Advisor Equity and Advisor Pool Breakdown

Eric Friedman

Bigger/better advisors who get more equity have things like; excellent domain expertise to help you avoid pitfalls, deep connections within the industry to help with the intros, partnerships, and more. As a potential advisor looking to get involved with the company; MORE EQUITY! Before embarking down this path, please check with your outside counsel, Board of Directors, and equity plan and financing documents etc… before making moves.