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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. Same Value for Sweat Equity as Investment Dollars? n = (1.2 - 1)/1.2 =.167.

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How to Wisely Utilize Debt for Business Expansion

The Startup Magazine

Poorly managed debt can lead to financial strain, decreased creditworthiness, and even bankruptcy. You may need funding for new equipment, hiring additional staff, expanding facilities, or investing in marketing and advertising campaigns. While debt can provide necessary funds for expansion, it also comes with risks.

Finance 121
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Launching a Portfolio Acceleration Platform at a Venture Capital or Private Equity Fund

David Teten

I’ve recently advised a number of emerging private equity and VC funds who are wrestling with the question: What are the highest impact steps they can take to support their portfolio companies? . Almost every private equity and venture capital investor now advertises that they have a platform to support their portfolio companies.

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? VI: Revenue-based financing: The next step for private equity and early-stage investment. This is a summary of: Revenue-Based financing: State of the Industry 2020.

Equity 78
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10 Partner Qualities to Test Before Sharing Equity

Startup Professionals Musings

If you find it hard to trust others, love to work alone, always have to be in control, or insist on micro-managing, you probably won’t find a partner who will satisfy you. Does not need to be managed. Look at the big picture first of development, finance, and marketing/sales. You may be too independent to be partner material.

Partner 258
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Financial Management: 7 Steps To Getting Your Small Business Debt-Free

The Startup Magazine

However, if not well managed, debts can ruin your venture. Whether you are new in business or an established entrepreneur, you need to be diligent with your finances. There are several reasons a bank will reject financing applications, but the most common is a low credit score. That way, you will have only one loan to settle.

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How to Scale a Venture Capital (or Private Equity) Fund

David Teten

Managers of VC funds typically want to grow their business aggressively, just like the founders we back. Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives. – Hire more non-Partner staff. – Hire more Partners.