Up and Running

DECEMBER 1, 2015

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.

Equity 60

Equity Employee Stock Options Vesting 60

www.entrepreneur.com

SEPTEMBER 22, 2011

Money Money Home Financing Taxes Accounting Basics Personal Finance Money Management Payments & Collections IPOs and DPOs Will Crazy Market Moves Kill IPOs and Slash VC Investment? What is Sweat Equity Worth? Determining how to value sweat equity is key when negotiating with investors and employees. July 31, 2007 |.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

The Startup Magazine

MARCH 14, 2022

The equity dilution at this nascent stage is on desirable terms; such investing can lead to profitable returns. Equity listing offers an opportunity for investors from cities to own a part of the company. At this stage, the founder mainly raises funding from their sources or family and friends. 2) Seed funding.

Technical Review 151

Technical Review Due Diligence India Startup 151

Startup Professionals Musings

AUGUST 6, 2023

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. These groups are now largely run by volunteers at no cost to entrepreneurs.

Angel Groups 201

Angel Groups Accredited Investor Due Diligence Equity 201

Startup Professionals Musings

NOVEMBER 4, 2013

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. IPOs in 2008, the market was up to a still trivial 128 in 2012 (compared to 675 in 1996). After a record low of 39 U.S.

IPO 224

IPO Founder Exit Strategy Investment Bankers 224

Agile VC

NOVEMBER 6, 2013

Twitter’s IPO has garnered a ton of attention in the tech and popular press. So their revenue figures, pre IPO financing and ownership, and other info is all widely available. Growth IPOs Are Back. To be fair the broad equity markets are up strongly over this time period, but clearly growth has been strongly favored.

IPO 194

IPO Aggregator B2B Internet 194

David Teten

JANUARY 19, 2021

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. On average, founders own just 43% of equity by Series B , declining thereafter. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

www.startuplessonslearned.com

MAY 4, 2012

Founders Dilemmas: Equity Splits. 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. Lessons Learned. by Eric Ries.

Equity 72

Equity Founder Technical Cofounder Cofounder 72

Startup Professionals Musings

SEPTEMBER 30, 2012

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. IPOs in 2008, the market was up to a still trivial 159 in 2011. After a record low of 39 U.S.

Exit Strategy 239

Exit Strategy IPO Investment Bankers Entrepreneur 239

Altgate

JUNE 25, 2012

—————– Dead equity — equity held by employees and founders no longer working at the company — is a large and growing problem. Facebook’s IPO minted many millionaires and even billionaires. Choe opted to forgo a cash payment “in the thousands” for the equity equivalent at the time.

Equity 44

Equity Vesting Cap Table Technical Review 44

YoungUpstarts

FEBRUARY 22, 2017

Corporate transactions including mergers and acquisitions (M&A) and initial public offerings (IPO) bring necessary capital and resources to a growing company. Do IPOs also necessitate an additional policy? In 2014, IPO activity grew substantially until it reached its current rate – the highest in the last six years.

IPO 137

IPO Prospectus Merger Initial Public Offering 137

Startup Company Lawyer

AUGUST 31, 2012

Quick answer: convertible equity (or a convertible security) is convertible debt without the repayment feature at maturity or interest. ” In response, Seth Levine wrote a very thoughtful post on convertible debt versus equity. Fred Wilson has been openly critical of convertible debt , and prefers priced equity rounds.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Startup Professionals Musings

JULY 3, 2015

In reality, this option is a nightmare that can bump you out of the driver seat, dilute your equity and create a business entity you can’t control. For financial reasons alone, an IPO is a statistically rare phenomenon, happening just 275 times in 2014 , out of almost 500,000 startups.

IPO 120

IPO Initial Public Offering Entrepreneur Private Equity 120

Version One Ventures

DECEMBER 20, 2021

Looking back at V1’s first IPO, an unusual investment at the time: Coinbase. A new kind of web is being built around the idea of an “ownership economy” that lets participants get equity upside. . Announcing Fund IV and Ops Fund II. 2/ Climate and energy. Public awareness about sustainability and climate change is at an all-time high.

Venture Capital 60

Venture Capital Technical Review Software Review IPO 60

The Startup Toolkit

FEBRUARY 15, 2013

false As a cheatsheet, the “normal” equity structure is: Founder terms: 4 year vesting, 1 year cliff, for everyone, including you. Getting equity structures right. When it comes to equity terms, there are only 3 things to understand: vesting, cliffs, and acceleration. Everyone who has equity should really, really be vested.

Vesting 56

Vesting Equity Cofounder Technical Review 56

Startup Professionals Musings

APRIL 17, 2023

The new investors you need at this stage are investment bankers, private equity, or competitors, to buy you out via merger or acquisition (M&A), or to go public with an Initial Public Offering (IPO). This is the exit stage for the entrepreneur, and for all earlier investors.

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Startup Professionals Musings

FEBRUARY 6, 2022

This Advisory Board is a good test drive for the more formal Board of Directors required later, when going public (IPO) or the entrance of venture capital investors. Yet I suggest a small one has value for every startup, starting at inception, prior to a major investor or key business scaling initiative.

Advisory Board 348

Advisory Board IPO Angel Investor Acquisition 348

ReadWriteStart

MARCH 31, 2020

Every expert agrees that VC investing faced a huge setback last year with the IPO flops of major companies such as WeWork, Uber, Slack, and Lyft as the facts show. This may probably drive entrepreneurs to alternative funding options, such as equity crowdfunding. However, things have not been all rosy in the VC market.

Technical Review 175

Technical Review Artificial Inteligence Startup Term Sheet 175

View from Seed

MARCH 24, 2021

How to Divide Founder Equity: 4 Criteria to Discuss “The first thing to remember in dividing founder equity is that equitable doesn’t mean equal … The goal should be an equitable result – one that is both fair and impartial – not exactly the same for all.” ” (Rob Go). ” (Dave Beisel).

Seed Stage 177

Seed Stage Hiring IPO Analytics 177

Startup Professionals Musings

AUGUST 21, 2021

Of course, that means a mindset willing to give up much more equity, and taking on a whole new level of risk. Then there is the pressure to go public ( IPO ), and open your investment to thousands, maybe millions, of small investors.

Merger 379

Merger Due Diligence SEC IPO 379

Altgate

AUGUST 25, 2012

—————– Dead equity — equity held by employees and founders no longer working at the company — is a large and growing problem. Facebook’s IPO minted many millionaires and even billionaires. Choe opted to forgo a cash payment “in the thousands” for the equity equivalent at the time.

Equity 28

Equity Vesting Cap Table Technical Review 28

Startup Professionals Musings

MAY 8, 2022

You have very little money, and you don’t want to give away your equity. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

Startup Professionals Musings

OCTOBER 17, 2022

VCs tend to carry their partners much longer, in hopes of a big public offering (IPO) that could produce a windfall. It’s the right way to get money without giving up too much equity or control of your business. Super angels sometimes drive up valuations.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

Startup Professionals Musings

NOVEMBER 6, 2020

It seems that most of you entrepreneurs I meet in my role as business advisor are convinced that starting a new business requires equity investors, exponential growth, and a plan to go public via IPO. Personal income is related to operations versus equity. With major investors, your equity and return is diluted and delayed.

Small Business 311

Small Business Small Business Administration SBA Equity 311

Up and Running

NOVEMBER 12, 2014

Common exit strategies include being acquired by another company, the sale of equity, or a management or employee buyout. Initial Public Offering (IPO). Buying and Selling a Business acquisition exit strategy family business Family Succession IPO merger' See Also What Startups Need to Know About Exit Strategies. Liquidation.

Exit Strategy 117

Exit Strategy Lock-up Period Merger IPO 117

www.mattbartus.com

SEPTEMBER 24, 2011

Equity for Consultants – Keep it Simple! posted Feb 3 in Equity , People issues. for every hour works, consultant accrues [hourly wage]in debt that will convert to equity in the next round). Is it atypical for founders to vest more than 25% of their equity after one year? Blog blog archive. Quora Answers.

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40

Startup Professionals Musings

JULY 22, 2020

The new investors you need at this stage are investment bankers, private equity, or competitors, to buy you out via merger or acquisition (M&A), or to go public with an Initial Public Offering (IPO). This is the exit stage for the entrepreneur, and for all earlier investors.

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Startup Professionals Musings

JULY 16, 2023

A few, like Silicon Valley Bank (SVB), despite recent failures, actually do provide management services to startups, invest in startups, or provide early-stage venture capital, but that is not called an investment service and is part of a function called Emerging Technologies, or sometimes Private Equity.

Early Stage 182

Early Stage Silicon Valley Private Equity Initial Public Offering 182

Gust

APRIL 11, 2014

Let’s get right down to business: Dilution of founders’ and other early shareholders’ equity in startups is frequently a subject of intense interest and debate. If you read the “ Dilution ” section of an IPO prospectus , you’ll see that the opposite happens to investors in the new public shares.

Dilution 162

Dilution Equity Pre-Money Valuation Prospectus 162

NZ Entrepreneur

SEPTEMBER 29, 2021

Generating liquidity usually entails either selling the venture or an IPO. Remuneration will reflect the stage of the startup but it’s generally at a rate of about $500-1000 a meeting or directors might be paid in equity at about 0.5-0.75% This equity will vest over 2-3 years. pivot the business. change the CEO.

Technical Review 88

Technical Review Software Review New Zealand Due Diligence 88

Steve Blank

MARCH 16, 2016

Risk capital takes equity (stock ownership) in your company instead of debt (loans) in exchange for cash. Founders can now access the largest pool of risk capital that ever existed –in the form of Private Equity (Angel Investors, family offices , Venture Capitalists (VC’s) and Hedge Funds.). The Bad News.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

Startup Professionals Musings

OCTOBER 26, 2020

A few, like Silicon Valley Bank (SVB), actually do provide management services to startups, invest in startups, or provide early-stage venture capital, but that is not called an investment service and is part of a function called Emerging Technologies, or sometimes Private Equity.

Silicon Valley 362

Silicon Valley Private Equity Initial Public Offering Term Sheet 362

Startup Professionals Musings

MARCH 3, 2021

Equity investors realize that they won’t see any real return until an exit occurs, such as a sale, merger, or IPO. This may include plans to merge or buy competitors, as well as a continuing plan to introduce new innovations. Present a viable exit strategy for investors to cash out.

Exit Strategy 406

Exit Strategy Merger Angel Investor IPO 406

Gust

DECEMBER 28, 2011

If the company was successful, this quickly led to an IPO – a very happy ending for the entrepreneur, the angels, and the venture capitalists. The two major differences in the exit environment in the past decade are (1) the disappearance of the IPO market and (2) the rapidly increasing size of the average VC fund.

IPO 153

IPO Venture Capital Entrepreneur Angel Investor 153

Startup Professionals Musings

OCTOBER 14, 2016

Don’t be afraid to give up equity to get a small share of a very large pot. The number of new ventures that successfully navigate the path to a public offering (IPO) with big numbers is still small. Opportunity and scalability are unlimited. Credible yet flexible exit strategy.

Intellectual Property 120

Intellectual Property Valuation Merger Exit Strategy 120

www.drowningamerican.com

JUNE 22, 2012

Next → How we Hire for Sweat Equity (Part 2)… Posted on April 7, 2011 by Travis Biziorek. I’m not FaceBook or Twitter and have a s**t-ton of potentially imminent IPO stock options to offer someone. equity in the company. Musings on Life and the American Dream. Skip to primary content. Skip to secondary content.

Sweat Equity 40

Sweat Equity Equity Hiring Technical Review 40

Pascal's View

MARCH 18, 2010

Susan Mangiero , CEO of Investment Governance’s Fiduciary X , asked me the following: Question: Do you think than anemic IPO market will remain a deterrent to VC investing? I believe that an entire generation of American innovation is at risk as a result of the lack of IPO’s. equity markets. Yes I do. Share and Enjoy:

IPO 28

IPO Government SEC Venture Capital 28