David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. 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. Funder Category.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Austin Startup

JULY 15, 2019

You’ll interact with every VC in Texas and those from Silicon Valley who are investing in Texas and every startup CEO who gets funded. We invest in startups that get funded by all of the top venture capitalists in Texas and Silicon Valley. Capital Factory has been the most active early stage tech investor in Texas since 2013.

Texas 56

Texas Technical Review Silicon Valley Venture Capital 56

Both Sides of the Table

JANUARY 21, 2010

If you’re a startup and you don’t have a close relationship with a few law firms you’re really missing one of the most important relationships that any entrepreneur can have. I write about some of the lessons in my post on Startup Mistakes. I know that people have an allergy to lawyers out of fear of being screwed.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

www.instigatorblog.com

OCTOBER 23, 2010

Home About Contact My thoughts & lessons learned on startups, entrepreneurship, marketing and other stuff. Changing Equity Structures for Early Startup Employees Tweet Recently someone asked me for advice on how much equity they should give to their early employees. the better the startup will be.

Equity 41

Equity Employee Startup Vesting 41

www.inc.com

SEPTEMBER 24, 2011

Advisor. ); STARTUP. Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Determined not to miss another opportunity, Graham has begun waiving fees and instead taking equity in clients he thinks have a good shot at success. Entrepreneur news from reporter Eric Markowitz. Newsletters.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Both Sides of the Table

MAY 28, 2018

He or she wants to know how long the money you will raise will last and whether this is long enough to warrant taking a risk on funding you. Conversely many VCs believe that constraining cash can often lead to increases in creative solutions at a startup. This is a red flag for VCs.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Both Sides of the Table

AUGUST 3, 2010

There is a telltale sign of an inexperienced startup entrepreneur. As a startup you shouldn’t focus on buying other companies until you’ve figured out your own business. A close friend of mine in LA who is 3 years into his startup called me about 2.5 Tags: Startup Advice. They get premature merge elation.

Merger 276

Merger Technical Review Early Stage Dilution 276

Agile VC

OCTOBER 23, 2012

And even if they wanted the index return, there is essentially no way to buy (or sell) a broad-based basket of VC funds in the way you can trade the S&P 500 or Russell 2000 or other public equity index. Startup outcomes are a power law distribution rather than a standard distribution. What about fund of funds (FoF), you ask?

LP 176

LP Accredited Investor Carried Interest Portfolio 176

Both Sides of the Table

MAY 27, 2013

You may know how much to pay in cash or equity for your new VP Engineering. I respect Rob a lot and the fact that he is willing to take feedback when warranted gives his great credibility. Startup Advice' Always seek input. You may have an opinion on your market-entry strategy for Europe. Rob is driven to learn. And improve.

Advisory Board 365

Advisory Board Fractional CTO CTO Hire Los Angeles 365

David Teten

AUGUST 19, 2019

This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. We don’t have any equity or control over the business….”. “As Key elements: . “We

Revenue 60

Revenue Technical Review Software Review Equity 60

David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Though RBI will displace some traditional equity VC, its much bigger impact will be to expand the pool of capital available for early-stage entrepreneurs. .

Revenue 60

Revenue Term Sheet Founder Technical Review 60

ConversionXL

JANUARY 18, 2022

Coca-Cola has brand equity that makes people gravitate towards it. With the right framework, any startup can achieve this in their industry. In this article, you’ll understand what brand equity is and how to build it so your audience reaches for your product, service, or solution over the rest. Brand equity. Image source.

Equity 94

Equity Marketing Social Media Software Review 94

ConversionXL

JUNE 2, 2022

But the customer is worth more and the target approach of ABM is warranted. Something like data analytics platform Plausible , on the other hand, is a simple product designed for startups, freelancers, and bloggers. If so, even a small deal may warrant a targeted approach. ABM makes sense. Strategic importance of clients.

Lead Generation 94

Lead Generation Marketing Sales Cycle Campaign 94

The Startup Magazine

JANUARY 11, 2022

Later on, Steve served as the Managing Director of Listed Equity Trading. Holders of the DIGau token will potentially be receiving distributions and warrants to purchase other minerals tokens at a discount. The post Stephen Braverman: An Entrepreneur Success Story appeared first on The Startup Magazine.

United States 198

United States Nevada Entrepreneur Warrant 198

The Next Web

OCTOBER 8, 2015

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., stock, options, warrants). stock, options, warrants).

Equity 60

Equity Employee Warrant Stock Options 60

Feld Thoughts

JULY 29, 2011

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.

Equity 137

Equity Finance Pre-Money Valuation Denver 137

Both Sides of the Table

MAY 23, 2010

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. a loan) that is later converted to equity at the time of the next financing. It starts as a debt instrument (e.g. From pragmatic risk taking to risk aversion.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

YoungUpstarts

AUGUST 30, 2017

Founders often believe that splitting the equity pie with you is not warranted. Founders always believe their ventures are worth at least an order of magnitude more than people with money do. They think that the money guys don’t get it. Some people thrive in the details.

Warrant 195

Warrant Valuation Metrics Startup 195

www.mattbartus.com

DECEMBER 9, 2012

Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. One possibility is to negotiate a higher valuation and offer warrants (i.e., Warrants. -. In order to exercise the warrants, the VC will need to pay an extra $666,667 into the company (i.e.,

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

Both Sides of the Table

SEPTEMBER 23, 2010

Convertible or equity? Cap or warrants? Corporations need startups. Tags: Startup Advice. How well financed is the competition? What is their market traction? How much are they raising? How much is soft-circled (committed)? At what valuation? Entrepreneurs need angels. Angels need VCs. VCs need corporations.

Entrepreneur 292

Entrepreneur Technical Review Stealth Valuation 292

ithacaVC

NOVEMBER 12, 2011

Typically, with convertible debt, the note holder expects the debt to convert into the next equity financing (often a Series A round). Conversion Discount vs Warrant Coverage. I just read a very interesting article about how to best structure convertible debt rounds. 85 a share (just divide the debt amount plus interest by $.85).

Warrant 49

Warrant Liquidation Preference Equity Stock 49

Both Sides of the Table

MARCH 6, 2010

When I was running startups I felt like a horse with blinders on because I was super focused on the content management market and ignored many other markets. Then I spent many years as a startup CEO. Still, it’s different in a startup. True, we’re paid better than many startup executives on an annual basis.

Technical Review 312

Technical Review Due Diligence Spain Warrant 312

Gust

JUNE 7, 2014

5) Senior Preferred Stock and warrants. 7) Junior Preferred Stock and warrants. 9) Common Stock (including any Preferred that converted to Common, any exercised options, and all Founders stock) and Common stock warrants. Invested Interests company early stage funding investors startup starup' 2) Secured creditors.

Warrant 157

Warrant Preferred Stock Early Stage Common Stock 157

Both Sides of the Table

SEPTEMBER 18, 2014

If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy. If you want to give them a 33% discount you offer them half of a $1 common-stock warrant for every $1 share they purchase. “But lawyers will charge much more for equity.”

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. What is Company Equity? Types of equity. Common stock. Preferred shares.

Valuation 108

Valuation Equity Warrant Common Stock 108

Board Effect

JUNE 10, 2019

The scariest part of starting a business is having enough startup funds and cash flow to get the business going before it can actually start to turn a profit. Business startups should be aware of the pros and cons of grants and other potential funding options. What Makes Grants So Attractive for Startups? Is There a Downside?

Small Business Administration 49

Small Business Administration SBA Startup Database 49

Austin Startup

AUGUST 20, 2017

August 20, 2017: This is another in my series of posts all leading up to a book on Startup Decision Making. One of the most common mistakes I see in startups is making decisions that lose sight of the context , including the past, present, and future. Sooner or later everybody in a startup knows what everyone else is getting paid.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Both Sides of the Table

MARCH 11, 2010

Recently I’ve been debating with a number of young startup companies that are raising money in the next few months, “what is the right about of capital to raise at a startup?&#. It places undue pressure early in the company’s history to “do big things&# when sometimes what is warranted is more prudence.

Venture Capital 319

Venture Capital Startup Silicon Valley Warrant 319

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? Convertible equity? The new form of convertible security or “convertible equity” is essentially a convertible note containing most of the usual terms — except it’s been stripped of the features that would make it a loan. Convertible debt?

Finance 134

Finance Convertible Security Equity Seed Stage 134

Both Sides of the Table

SEPTEMBER 5, 2012

This time by the efforts of Adeo Ressi to introduce a new kind of structure called “ convertible equity.” My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

Up and Running

SEPTEMBER 26, 2016

For startups and high-growth businesses, as you scale and encounter new milestones and obstacles, you will be faced with the question of how to finance and plan for that growth. Luckily for founders, the ways in which you can finance your startup are varied based on your business model, your preference, your goals, and timeline, and so on.

Covenant 60

Covenant Institutional Investors Balance Sheet Warrant 60

Startup Company Lawyer

MAY 4, 2009

The driving beliefs behind the Institute are that (1) great founders are often overlooked by the current entrepreneurial ecosystem, and that (2) innovative startups have a dramatic positive effect on the global economy. Description: What are the typical stages of the funding life cycle for different types of startup businesses?

Founder 28

Founder Warrant San Francisco Intellectual Property 28

Lightspeed Venture Partners

DECEMBER 10, 2012

As O’Leary said, this isn’t an equity investment. This is a loan with a 15% warrant attached at a zero strike price. In the venture-backed startup world, there are a couple of types of firm that will lend to a startup, even a startup that is still losing money. Fat Ass Fudge.

Covenant 162

Covenant Warrant Southern California Los Angeles 162

Austin Startup

MARCH 23, 2017

To briefly recap: 3/12 : Fred Wilson discussed why he dislikes convertible notes and SAFEs, and how priced equity rounds make more sense at the seed level. 3/20 : danprimack provided detail on Wal-mart/Jet.com’s acquisition of ModCloth, and how substituting (rather than supplementing) debt for equity can cause problems.

Dilution 54

Dilution Equity Warrant Distribution 54

Gust

JULY 12, 2012

It doesn’t give you more cash compensation, more equity ownership or more direct control over the operating business. If you are going to be a true co-founder (and 20% equity sounds like it), sharing over-all decision making about company direction, strategy, financing, staffing, etc.

Cofounder 107

Cofounder Founder Warrant Equity 107

Growthink Blog

MAY 21, 2014

One reader reference Gust Founder David Rose’s new book - “ Angel Investing: The Gust Guide to Making Money and Having Fun Investing in Startups ” and to Rose’s main contention that to access the 25% IRR potential of the asset class one must hold positions in not less than 20 companies. He asked, “ Is this practical advice?

San Diego 72

San Diego Warrant IRR Investment Bankers 72

Startup Company Lawyer

MARCH 14, 2010

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70