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

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. So the first question I usually get is what percent of the company or equity is that person worth? co-founders fair share new venture split equity

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7 Equity Crowdfunding Risks Feared By Many Investors

Startup Professionals Musings

Yet crowdfunding is no panacea for hungry entrepreneurs and startups. In fact, there are many types of crowdfunding, including donations, reward, pre-orders, loans, and equity. It is this growth that concerns many investors: Startup valuations can’t be negotiated via crowdfunding.

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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

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. So the first question I usually get is what percent of the company or equity is that person worth? entrepreneur fair share startup startup equity

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For Equity Investors, A Startup Has To End To Win

Startup Professionals Musings

The last thing a new entrepreneur wants to think about for a new startup is how it will end. 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.

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Raising Money Using Convertible Equity

YFS Magazine

Lately, more founders are inquiring about convertible equity. Some wonder if it is a good replacement for convertible debt (which has become ubiquitous in seed stage startup funding).

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8 Secrets for Maximizing Startup Equity and Control

Startup Professionals Musings

When someone asks me for the best way to fund a startup, I always say bootstrap it, meaning fund it yourself and grow organically. 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.

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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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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. Banks offer commercial loans for businesses but they can be difficult to get for startups. Equity Financing. Equity financing is provided by an investor instead of a lender.

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. It’ll give you a fair and objective recommendation about how to divide your startup’s ownership, so you and your co-founders will have a sensible, real starting point for this notoriously hard, crucially important conversation. Many startup founders find themselves lacking clarity and direction when it comes time to divide their. Starting Your Company co-founders equity starting a company startups

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Enhancing the Co-founder Equity Split Conversation

Gust

Today we’re proud to release an updated Co-founder Equity Split tool. We released the first version back in November to help startup founders divide the ownership of their startup fairly and rationally among their team.

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Equity Compensation at a Startup is a Big Gamble

Startup Professionals Musings

Wouldn’t you like to be one of the lucky people who joined Google and Microsoft when these were startups, and now be a multi-millionaire? So people ask me “How many shares should I ask for when I join a startup today?” compensation entrepreneur startup employees equity business

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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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Marketing Sweat Equity: Getting Your Startup’s First Sales—Without Spending Money on Consultants and PR

Up and Running

So, if you’re anything like me, your first startup will need to be self-funded and operated with a very lean budget. Instead, I had to scrape and claw my way through the pre-launch, startup process, and scale of my business.

10 Partner Qualities to Test Before Sharing Equity

Startup Professionals Musings

A while back I talked about how and where to find a co-founder in “ For a Startup, Two Heads are Always Better Than One.” The feedback was good, but some readers asked me to be a bit more specific on attributes that might indicate an ideal startup partner.

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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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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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Should You Offer Equity Compensation to Employees?

Up and Running

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.

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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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. The first few people into a startup are on a spectrum of founder vs. early employee. Same Value for Sweat Equity as Investment Dollars?

Founder's Dilemmas: Equity Splits

Startup Lessons Learned

The following is an excerpt from HBS Professor Noam Wasserman’s new book, The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup. Setting the early equity split in stone is one of the biggest mistakes founders can make.

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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. Todd is a go to resource for people looking for talent in startups.

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Startup Equity Crowdfunding Grows in Europe (NESTA Report)

VC Cafe

Amongst the different types of crowdfunding: Donation, Reward, Lending and Equity, the latter is on the rise as a fundraising mechanism for European startups. investors can then, through the platform, buy small parts of this equity stake. Decision on how much equity.

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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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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!

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

I had a recent email dialog with the founder of a company looking for a CTO for their startup. Was it a Startup Founder Developer Gap ? Did they really need a Startup CTO or Developer or both? 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. There are cases where I will do equity-only deals.

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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

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 ).

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Equity, tokens and working for free

Start Up Blog

Ten years ago I used to get offered equity to work for free, now I get offered tokens in upcoming ICO’s. I used to say yes to many equity offers if: (A) I liked the project (B) I liked the people As you can imagine most of these projects never went anywhere.

Do venture capital firms or private equity funds offer debt financing for startups?

Gust

For venture capital, this is typically ten times the invested capital, and those returns can only be achieved through equity appreciation, not debt service. If you already have a startup, why do you believe it will take two to five months to write a business plan? And if you are still at the startup stage, how do already have global operations in a dozen countries? Invested Interests debt financing private equity funds startup VCs venture capital firms

Can A Hoodie Increase Brand Equity?

crowdSPRING Blog

From a brand equity perspective, the purple hoodie was a unique way to acquire 2,000 die-hard brand advocates. Startups have been using branded apparel as a way to build brand equity for years. Image credit: Twitch.

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When to trade equity for services

The Next Web

Giving up equity in your business, as an alternative to paying cash, often sounds like a great idea to cash-starved startups. But, giving up equity in your business is often a very big decision, and can come at a long-term price, both financially and operationally.

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The right way to give equity to your employees

The Next Web

As a rule, entrepreneurs are very protective of their equity, and try to keep 100 percent ownership for themselves. lucrative sales commission plan, profit share plan), and sometimes that comes in the form of equity or equity linked incentives (e.g.,

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Is Convertible Debt Preferable to Equity?

Both Sides of the Table

Convertible debt is an investment that “converts&# into equity in the future usually at a discount to your next funding round price and sometimes has a “cap&# (maximum price). prefer equity to convertible debt): If you’re an early stage investor (e.g.

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When should a convertible note be treated as a replacement for an equity round, and take on characteristics of an equity financing?

Gust

A convertible note and an equity round are two different things, done for different reasons. A large majority of serious investors will insist on an equity round, either lightly documented (such as a Series Seed) or fully documented (such as an NVCA Model Series A). If they are similar in range, go right for an equity round, instead of incurring the cost and hassle of double-papering a note and a preferred round. It doesn’t work that way.

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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Sometimes co-founders put off the equity split question for some time. Both of these are typically reflected in the founder equity split.

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Vista Equity Partners Backs Austin-based YouEarnedIt

SiliconHills

YouEarnedIt, a startup focused on rewarding employees at companies, has landed an investment from Vista Equity Partners, based in Austin. The Austin based startup also received investment from its previous investors, Ridge Ventures and Silverton Partners.

Gust Launches Comprehensive Equity Management Platform for Cap Table Management and 409A Valuations

Gust

Gust announces acquisitions of Sharewave and Preferred Return; creates the most robust and affordable equity management solution for early-stage startups. June 22, 2016 – NEW YORK, NY – Gust, the global service provider powering the entrepreneurial ecosystem, announced today the launch of a comprehensive equity management platform, Gust Equity Management. Gust News Starting Your Company 409A valuations cap table management equity management

Equity Based Crowdfunding Starts Nationwide Today

SiliconHills

Today is an historic day for startup investing and fundraising. Title III of The Jobs Act goes into effect four years after President Barack Obama signed the act into law.