YoungUpstarts

APRIL 22, 2014

Shark Question #4: How much equity and debt is there in your business? In other words, how much of the business is financed with equity (owner’s money) or debt (borrowed money). Sharks need to know how much “skin in the game” you have in your business. Craft a solid business and strategic plan.

CPA 160

CPA Technical Review Later Stage Equity 160

The Equity Kicker

AUGUST 19, 2015

In the words of an alum from the 2006 cohort: Companies are joining YC at a much later stage. Perhaps the best example is Apax, from here in the UK who started out as one of the first venture capital firms and over time morphed themselves into a private equity company doing multi-billion dollar deals.

Later Stage 60

Later Stage Private Equity Venture Capital Valuation 60

View from Seed

APRIL 30, 2015

Glen Mello: Venture debt is a good complement to equity. It’s generally got a lower cost compared to equity capital and can help support growth. So it makes it a lot more challenging when you have debt on the books that isn’t as longer term as equity. Any equity the venture debt lender gets?

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Startup Professionals Musings

SEPTEMBER 11, 2020

Accelerators generally accept startups at a slightly later stage, and attempt to compress the timeline to commercialization into a few months, instead of a year or more. Direct seed funding, for a share of the equity, and introductions to investors. Peer-to-peer networking with other startups and founders in the same stage.

Incubator 398

Incubator Silicon Valley North America Startup 398

David Teten

DECEMBER 15, 2018

Consider approaching one of the small number of funds which acquire tech startups, e.g., Constellation Software , Think3; Vista Equity Partners. Outplace your team.

Startup 60

Startup Later Stage Technical Review Software Review 60

Both Sides of the Table

MAY 28, 2018

It’s true that some later-stage private equity firms like to fund “roll ups” (a company that acquires many related companies in it sector), but this is seldom the domain of VCs. Every VC knows that the amount you raise is often a proxy for your valuation.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Both Sides of the Table

JUNE 30, 2011

With more competition in early-stage many VCs are investing smaller amounts at earlier stages. Some are going later stage to not miss out on hot deals. I call this “stage drift.&#. Hedge funds and growth equity firms returning to their traditional segments of the market.

Venture Capital 289

Venture Capital Early Stage Valuation Angel Investor 289

Austin Startup

MAY 11, 2017

Our unique approach to investing, coupled with a pioneering spirit, provides the vision to guide early stage growth companies beyond today and toward future success. Vista Equity Partners | Vista Felicis Ventures At Felicis Ventures we back the world’s iconic companies of today and tomorrow. That drives every decision we make.

Private Equity 48

Private Equity Venture Capital Technical Review Seed Stage 48

VC Adventure

AUGUST 15, 2018

Most boards did some level of work to determine the FMV of a company’s stock but generally options were priced between 10% and 15% of a company’s then preferred price (because common equity sits behind preferred equity there is typically a discount applied to the FMV of common stock to account for this “overhang”).

Valuation 48

Valuation Common Stock Cap Table Software Review 48

The Next Web

JULY 24, 2015

Venture capital investors are looking for different things than private equity investors. Venture capital firms are typically growth-oriented, early-stage investors looking for these proof-of-concept points before cutting a check.

Private Equity 60

Private Equity Equity Venture Capital Early Stage 60

Both Sides of the Table

MAY 27, 2013

I would say the norm for many early-stage companies is somewhere between 6-10 in-person meetings per year. The earlier stage the more likely it is 10 meetings and the later stage the more likely it is 6. You may know how much to pay in cash or equity for your new VP Engineering. Ask for short conference calls.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

Growthink Blog

MAY 10, 2012

When seeking equity investments, the source of capital is, for the most part, tied to the stage of capital being raised. You see, equity capital is raised in stages or rounds. The five main stages include the following: 1. Early Stage Investment (Series A & B) 4. Pre-Seed Funding 2. Seed Funding 3.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

David Teten

MAY 9, 2012

HBSAANY is comprised of New York City tri-state area Harvard alumni who are venture capitalists and other accredited investors investing in early-stage, private companies around the United States. The National Association of Investment Companies (NAIC) is the trade association representing women and diverse private equity and venture firms.

Venture Capital 154

Venture Capital Programming Accredited Investor New York 154

David Teten

JANUARY 21, 2021

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. VIII: The Leading Flexible VCs, With Structures Between Equity and Revenue-Based Investing. We plan to raise $2.5m

Equity 78

Equity Revenue Cofounder Colorado 78

Steve Blank

MARCH 17, 2020

Data from the last large crash in 2008 had seed rounds recovering early, but later stage funding cratered and took years to recover. This time around, the health of the venture business may depend on what hedge funds, investment banks, private equity firms, sovereign wealth funds, and large secondary market groups do.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Berkonomics

AUGUST 3, 2023

Accelerators: This relatively recent combination of coach and limited investor is available to some early-stage businesses, usually in major cities, and requires that the entrepreneurs spend from weeks to months being coached by the accelerator team. Often private equity investors will want control of the business as well.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

David Teten

JUNE 22, 2012

The national outreach for women and minority entrepreneurs and the selection process was co-managed by the National Association of Investment Companies, the trade association representing private equity firms focused on the middle market. In its 42 year history, NAIC Member firms have invested in and transformed more than 20,000 companies.

Programming 128

Programming Accredited Investor Naming New York 128

Hippoland

JANUARY 4, 2017

Here’s a quick primer on how investments tend to work in startup companies at the seed stage. Equity Traditionally, investors have invested in companies to receive equity, or shares in a company. Later, if you sell the whole company to Google at say $5 per share, I will earn $500k for a net gain of $400k.

Convertible Security 48

Convertible Security Equity Security Silicon Valley 48

Both Sides of the Table

APRIL 6, 2014

I know that in later-stage growth equity deals some firms even hire third-parties who will do the reference calls. I have been part of one deal where this happened and the level of detail from a professional reference checker was unbelievable.

Technical Review 302

Technical Review Hiring Later Stage Employee 302

Seeing Both Sides

AUGUST 28, 2017

But once entrepreneurs have their initial team and product in place, a few smart advisors around the table and the social proof required to attract great talent, why would they raise additional dilutive equity capital if they can raise non-dilutive capital through the sale of tokens? Shift of value from equity holders to token holders.

Early Stage 20

Early Stage Equity Venture Capital Government 20

Seeing Both Sides

AUGUST 28, 2017

But once entrepreneurs have their initial team and product in place, a few smart advisors around the table and the social proof required to attract great talent, why would they raise additional dilutive equity capital if they can raise non-dilutive capital through the sale of tokens? Shift of value from equity holders to token holders.

Early Stage 20

Early Stage Equity Venture Capital Government 20

David Teten

JUNE 22, 2012

The national outreach for women and minority entrepreneurs and the selection process was co-managed by the National Association of Investment Companies, the trade association representing private equity firms focused on the middle market. In its 42 year history, NAIC Member firms have invested in and transformed more than 20,000 companies.

Programming 114

Programming Accredited Investor Naming New York 114

Startup Professionals Musings

NOVEMBER 4, 2018

Accelerators generally accept startups at a slightly later stage, and attempt to compress the timeline to commercialization into a few months, instead of a year or more. Direct seed funding, for a share of the equity, and introductions to investors. Peer-to-peer networking with other startups and founders in the same stage.

Incubator 218

Incubator Silicon Valley North America Small Business Administration 218

Austin Startup

JUNE 30, 2017

TL;DR : Elite accelerators have cemented themselves as the universities of the entrepreneurial world; offering a bundle of resources in exchange for a price (tuition in form of equity). in exchange for a price: usually 6–9% of equity, with (sometimes) heavy anti-dilution rights, and pro-rata rights.

Curation 48

Curation Startup Cofounder Equity 48

David Teten

JANUARY 9, 2018

In a prior life, I served as a consultant to Goldman Sachs Special Situations Group, Carl Icahn’s organization, and some other very large private equity investors. I saw “ portfolio operations ,” i.e., levers to enhance the operations efficacy of portfolio companies, become a standard part of the private equity toolkit.

Venture Capital 60

Venture Capital Private Equity Silicon Valley Differentiation 60

David Teten

JANUARY 9, 2018

In a prior life, I served as a consultant to Goldman Sachs Special Situations Group, Carl Icahn’s organization, and some other very large private equity investors. I saw “ portfolio operations ,” i.e., levers to enhance the operations efficacy of portfolio companies, become a standard part of the private equity toolkit.

Venture Capital 60

Venture Capital Private Equity Silicon Valley Differentiation 60

David Teten

JULY 25, 2017

Large private equity funds like KKR can afford to pursue a consulting model ( Capstone ), typically with associated fees, but that doesn’t normally make economic sense for a VC. Effectively, we are a market maker between our portfolio companies and the late-stage VCs and large enterprises which are our co-investors.

Portfolio 60

Portfolio Technical Review Private Equity Database 60

Both Sides of the Table

FEBRUARY 23, 2015

He wants a chance at changing life’s circumstances with building equity value that might free him and his family from the rat-race of 529 accounts, property taxes, summer-school tuitions and even spending some cash on aging parents. He still has the dream. He has the hunger. I’m not saying it’s even desirable.

Technical Review 150

Technical Review Liquidation Preference Silicon Valley IP 150

Berkonomics

MARCH 8, 2018

Give one percent equity to each outside board member vesting over four years of service. Many early stage CEOs and board members have asked for some guidance regarding pay and time commitments for board members. Here is my best advice, based upon many boards and many years.

Early Stage 102

Early Stage Vesting Stock Options Preferred Stock 102

The Startup Magazine

FEBRUARY 6, 2020

The buyers (or lessees) in these transactions are pension funds, insurance companies, or private equity representing other institutions. Private Equity sees infrastructure investing as uncorrelated diversification and has the additional upside of correcting any operational inefficiencies.

Private Equity 129

Private Equity New York City Chicago Investment Bankers 129

Startup Professionals Musings

APRIL 6, 2016

With one of the new free tools and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services. Use your equity for key executives and business partners. Bootstrapping doesn’t mean that you don’t share equity.

Bootstrapping 120

Bootstrapping Hockey Stick Sweat Equity Intellectual Property 120

Duct Tape Marketing

JULY 27, 2023

Ben Young (02:28): So I, I'm sure a lot of small business owners and agency owners have had those requests where they're like, can you do some work for some equity? that will convert into equity down the road. And that might be in 1224 months and there may be some discounts associated with that, or other times it is on an equity basis.

Cofounder 57

Cofounder Artificial Inteligence New Zealand Analytics 57

The Next Web

AUGUST 26, 2013

I’ve seen a few businesses where the first investors took huge pieces of equity for very little money. 15-20% equity for first investors. Depending on your team and the risk of the business, you should reserve 15% to 20% of equity for the first investors you get on board. Avoid making those mistakes and define a fair structure.

Management 120

Management Cofounder Startup Bootstrapping 120

View from Seed

SEPTEMBER 14, 2021

Early-stage valuations are up 70%, and late-stage valuations are up 103% (source Pitchbook ). Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less. Source: Cambridge Associates (VC) & TradingView (Equities).

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

Feld Thoughts

JUNE 14, 2017

At what point do you flip from being a buyer of equity to a seller of equity? Are you going to only invest from the fund, or are you going to create SPVs on deals in later stages? How do you want downstream VCs to think about you, or do you even care? I paused to eat another piece of sushi.

Differentiation 147

Differentiation Later Stage Equity Founder 147

Startup Professionals Musings

JANUARY 12, 2013

See how many you have personally experienced already, or are currently mentioned in your business plan: Crowd-sourcing equity. Sites like KickStarter have for years offered rewards and pre-sales for crowd investments, but real equity won’t be legalized until sometime this year for people other than accredited investors.

Entrepreneur 274

Entrepreneur Accredited Investor Silicon Valley Angel Investor 274

ReadWriteStart

MARCH 3, 2021

Limited brand equity. If you want to continue growing with PPC ads in the later stages of your company’s development, you can increase your budget and target keywords more aggressively. In some situations, that renders the marketing budget exhausted from the start. Because people already know it. Email Marketing.

Early Stage 125

Early Stage PPC Retention Churn Rate 125