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. So we decided to launch an equity back guarantee. The post Techstars Equity Back Guarantee appeared first on Feld Thoughts.

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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.

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5 Criteria For Splitting Equity In Your New Venture

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.

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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. People see recent equity investors making billions by getting in early, ala Facebook and Amazon, and may not be prepared for the high probability of losing everything.

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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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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. Uncategorized equity VC

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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.

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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. Moreover, the company has experience when it comes to supporting the alternative investment area, specializing in private equity firms, asset managers, and hedge funds.

5 Things To Consider Before Selling To A Private Equity Firm

YoungUpstarts

by Adam Coffey, author of “ The Private Equity Playbook ” . One or two of the interested parties could be strategic companies, larger than yours, who are seeking to purchase your company, but for the most part, it will be private equity groups.

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. By Tom Walker, CEO Rev1 Ventures.

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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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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. Equity Financing. Equity financing is provided by an investor instead of a lender. Others debt financing equity financing

What Can Home Equity Loan/Line of Credit (HELOC) Money Be Used For

The Startup Magazine

A home equity loan, or home equity line of credit (HELOC) can be used for a number of different purposes. Using equity in your home is a great way to bootstrap your business before you ask for friends and family money or go to angel investors to raise capital for your startup.

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How does equity dilution work for startups?

Gust

Equity dilution works when the same pie is divided among more people. Over time, other people receive pieces of equity in exchange for work (employee stock options), money (seed, angel and venture investors), services (attorneys, directors, etc.).

Enhancing the Co-founder Equity Split Conversation

Gust

Today we’re proud to release an updated Co-founder Equity Split tool. The post Enhancing the Co-founder Equity Split Conversation appeared first on The Gust Blog.

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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. Find a private equity firm or friendly individual. entrepreneur equity investors IPO startup exit

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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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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.

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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.

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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.

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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.”

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Austin-based Homeward Raises $25 Million in Debt and Equity Funding

SiliconHills

That includes $4 million in equity funding and $21 million of debt funding. Austin-based LiveOak Venture Partners led the equity funding and Genesis Capital and Keystone Bank provided the debt funding.

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

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Co-founder Equity Split: A New Framework to Objectively Divide Startup Ownership and Get Back to Building a Business

Gust

We’ve just released our free Co-founder Equity Split tool. The post Co-founder Equity Split: A New Framework to Objectively Divide Startup Ownership and Get Back to Building a Business appeared first on The Gust Blog. Starting Your Company co-founders equity starting a company startups

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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.

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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. equity funding investor non-profit philanthropist

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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. As well as this, their private equity investments have surpassed the likes of Russia and Turkey – meaning that the nation is slowly but surely becoming a real force.

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.

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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Investment Planning: How Gold Helps Balance Equity Risks In Your Portfolio

YoungUpstarts

Those who have been investing in stocks and equity will know of the risks that it carries when it comes to long-term wealth creation. The volatility associated with equities and stocks can, however, turn investors away. Or, better yet, would that make you invest in the equity market?

Texas Approves Equity-Based Crowdfunding Rules

SiliconHills

The Texas State Securities Board voted 4-0 on Wednesday to approve new intrastate equity-based crowdfunding rules. The […] The post Texas Approves Equity-Based Crowdfunding Rules appeared first on SiliconHills. Austin San Antonio Crowdfunding Rules equity-based crowdfunding Texas State Securities Board By LAURA LOREK Reporter with Silicon Hills News Texas companies will soon be able to raise money from the average investor.

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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 ). You can also enter salary and equity data to see where you stand.

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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.

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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. By Jenny Q.

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How much stake (equity) is an idea worth?

Gust

Invested Interests entrepreneur equity equity distribution idea startupIt depends on the quality of the idea. I’m a firm believer in Derek Sivers ‘ calculus, which goes like this: AWFUL IDEA = -$1. WEAK IDEA = $1. SO-SO IDEA = $5. GOOD IDEA = $10. GREAT IDEA = $15. BRILLIANT IDEA = $20. The real value, of course (as other answers here have noted), comes from executing on the idea.

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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. Equity crowdfunding vs. donation crowdfunding. Equity crowdfunding differs from donation crowdfunding in two major ways.

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What is the ratio of equity received for sweat equity vs. cash investment in a new venture?

Gust

There is no specific ratio between “sweat equity” and cash in a venture, and that’s actually not a good way to think about the issue. You might have created that value by slaving 18 hours a day, seven days a week for five years (in which case the value of the sweat equity is $8.70 Invested Interests Angels cash equity effort ownership startup sweat equity VCs

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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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!

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.

Splitting Startup Equity for Your Piece of the Pie

Startup Professionals Musings

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Another common “failure to start” situation I see is one where the “idea person” insists that the idea is 90% of the value (and 90% of the equity).

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Startup CTO Salary and Equity Data

SoCal CTO

Todd Gitlin of Safire Partners was nice enough to compile some data on Start CTO Salary and Equity at Venture Backed Companies for the LA CTO Forum and present last year. You can find a public Google Spreadsheet with the data: CTO Equity Compensation Google Spreadsheet.

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Convertible Debt, Priced Equity Rounds and Deal Timing

Gust

An impromptu Twitter debate arose among Fred Wilson, Dave McClure, Mark Suster, Chris Dixon and others about convertible debt, priced equity rounds, and the nuances of early stage financing. Invested Interests angel investment convertible debt convertible note deal terms due diligence financials fundraising priced equity priced rounds tactics valuation valuations VCs venture capital

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