article thumbnail

How to calculate the equity split between co-founders in a startup

The Next Web

There are a lot of variables to go into calculating a fair equity split a startup team. If people are funding the business, they should get a premium because at the end of the day, cash funding founders are acting no different than a seed stage investor. How do you manage your equity split in your company?

Cofounder 136
article thumbnail

Rolling Closes Versus Synchronous Closes

Haystack

Most of the rounds I participate in today are priced equity rounds. The equity round process bakes this in, and helps every participant to know what they’re raising or holding at any given point, dissuading the company from taking on additional capital without some burden. For me, how I work, I like synchronous events.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

How to finance a new seed-stage startup? Convertible equity? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” Convertible debt? As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won.

Finance 134
article thumbnail

Five Questions Every Start-Up Should Ask About Accelerators

Austin Startup

I put that in quotations, because, as I’ll expound, there is a start-up industrial complex that is designed to fleece novice founders from their seed capital with predatory fees, terms, etc. Some accelerators take equity in exchange for providing services like desk space, credit on cloud services, or “free” consulting.

article thumbnail

Exploring the NextView Platform? Start Here

View from Seed

– Flowchart: Seed VC Decision Tree (how one seed investor gets to yes or no). – Checklist: Critical to-do’s immediately after raising seed capital. – Questions to ask when dividing founder equity. – Why raise seed vs jump to Series A? A look at actual startups’ funnels).

article thumbnail

Quickly Unpacking Two Recent Acquisitions (of Cylance; of PlanGrid)

Haystack

venture capital to date (more on this in a separate post), unfortunately relegating billion-dollar exits as “ho-hum” events to the technology crowd. 4/ The Big Winners: Cylance raised around ~$280M in financing, with large equity stakeholders being Khosla Ventures, Fairhaven, and Blackstone. 1/ Cash Is King: The $1.4B

article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

In case it isn’t clear by now, angel investors aren’t in the business of making risky early stage investments in order to earn 6% interest on their money, or even 10%— the upside is all in conversion to equity—so the interest rate isn’t a major point of negotiation. These deal terms are simple but significant.

Finance 79