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How to Have a Smarter VC Strategy

Austin Startup

Consider convertible debt Before diving into a seed round, you may want to consider convertible debt over equity financing. Find extra value in “smart” money Many early stage companies seek out money wherever they can find it, often from dozens of angel investors, and worry about attracting more strategic investors down the line.

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[Interview] Patrick Mackaronis, Director Of Business Development At Brabble

YoungUpstarts

Give these people equity to get them on board early on when cash is low. You need to find the right investors to get the ball rolling, then you can start really looking at the bigger targets like family offices or strategic investors. You also talk about “family and friends” funding.

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More Tech Startups are LLCs

Austin Startup

C-Corp largely because (i) VCs have historically favored C-Corps for nuanced tax and other reasons, and (ii) virtually all of the standardized legal infrastructure around startup finance and equity compensation assumes a C-Corp. However, times are changing. If you are an LLC tech startup, you need tax counsel.

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Need money? Read this!

Berkonomics

Whether the partner is a supplier looking to gain a lock on your business as it grows or a customer looking to create a competitive barrier through use of your product, such an investment typically carries fewer restrictions than from a professional investor and less oversight. These include Y-Combinator and TechStars, among others.

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Startup CEO (OnlyOnce- the book!), Part III – Pre-Order Now

OnlyOnce

Chapter 12: Compensation…General Guidelines for Determining Compensation, The Three Elements of Startup Compensation, Base Pay, Incentive Pay, Equity . Chapter 38: Working with the Board on Your Compensation and Review…The CEO’s Performance Review, Your Compensation, Incentive Pay, Equity, Expenses.

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The Summer of Initial Coin Offerings

Seeing Both Sides

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.

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The Summer of Initial Coin Offerings

Seeing Both Sides

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.