Founder Dilution

A VC : Venture Capital and Technology

I saw a blog post this weekend that looked at the IPO filings of 79 tech companies and calculated the ownerships of the founders and the VCs at IPO. The result of that analysis is that the average founder ownership at IPO was 17% and the average VC ownership at IPO was 56%. I’ve written a bunch on this topic and here are two posts that address this exact issue: Founder Dilution – How Much Is “Normal”?

We Will Never Need Another Financing

Feld Thoughts

“We will never need another financing.” ” “This financing will get us to cash flow breakeven.” ” “This is our last financing before we become profitable.” But even if you, as the founder, believe it, you are still probably deluding yourself. “This is the last financing we’ll ever need” is the lead in statement. The post We Will Never Need Another Financing appeared first on Feld Thoughts.

Trending Sources

7 Seed-Stage Funding Sources To Finance Your Startup

Startup Professionals Musings

I challenge any entrepreneur, for example, to define the difference between "seed-stage" and "early-stage" financing. Ron Conway , of SV Angels, and Reid Hoffman , LinkedIn's founder, are names often mentioned in this category.

Convertible Note Seed Financings: Founders Beware!

Scott Edward Walker

This post is the third part of a three-part primer on convertible note seed financings. Part 1, entitled “ Everything You Ever Wanted To Know About Convertible Note Seed Financings (But Were Afraid To Ask) ,” addressed the basics.

Kindred Spirits – Our Investment In Founder Collective

Feld Thoughts

One of our recent investments, offered by Founder Collective (FC) – an eight-year-old manager with offices in Boston and San Francisco – is an excellent example of what we look for when we invest in funds offered by other managers. Investments fg next founder collective LP

When Financings Fall Apart

Ask The VC

Rand Fishkin, the CEO & co-founder of SEOmoz, has an long, thorough, and incredibly detailed blog post up about The $24 Million Moz Almost Raised. Fundraising financing fundraisingRand does an awesome job of providing extensive details while maintaining confidentiality of the participants. The story covers the full lifecycle of the VC fundraising process, beginning with Rand and his teams’ discussion about whether or not to raise money.

Should founders get Stock Options?

StartupCFO

Founders often ask me whether they should be asking for stock options in their own company. There’s no one right way to think about founder incentive compensation, but here’s how I have approached it over the years. You will go from being a founder to being an executive in your company.

Ehrenberg: Financing your start-up

Ask The VC

Roger Ehrenberg from IA Ventures has today’s VC post of the day titled Financing your start-up. He covers some very relevant ground talking about what he thinks are the key variables an entrepreneur should consider with regard to her financing strategy: (1) Founder objectives and mind-set; (2) Business potential; (3) and Interpersonal dynamics. VC Post of the Day exit financing m&a vc post of the day

New Early Stage Financing Options for Entrepreneurs

Startup Professionals Musings

For a startup founder, this stage is when the “big idea” has become a passion for him, but he hasn’t written anything down yet. Despite these pundits, I sense a fundamental change in the early-stage financing eco-system. entrepreneurs startup financing early-stage funding business

Sizing Option Pools In Connection With Financings

A VC : Venture Capital and Technology

What I like to do, as I mentioned in the post I linked to, is agree with the entrepreneur that the option pool will have enough unissued options to fund all the hiring and retention grants that need to happen between the current financing and the next one. Then we'll do the same thing at the time of the next financing. If the financing is $1mm, it's not going to be that many. Ideally they will have founders stock or restricted stock.

Mark Cuban's Best Personal Finance Advice, In One Sentence

Inc Startups

When to spend it, when to save it, and how to ask for it: Bobbi Brown, Max Levchin, Daymond John, and 19 other founders pass along the financial wisdom that led to their success.

New Early Stage Financing Options for Entrepreneurs

Gust

For a startup founder, this stage is when the “big idea” has become a passion for him, but he hasn’t written anything down yet. Despite these pundits, I sense a fundamental change in the early-stage financing eco-system.

8 Entrepreneur Challenges Founders Don’t Anticipate

Startup Professionals Musings

Managing personal finances separate from the business. Being an entrepreneur is a lifestyle, making it hard to isolate the startup finances from family financial stability and future retirement requirements.

AppDirect Is Hiring After Closing a $50 Million Financing

Feld Thoughts

We first met the founders of AppDirect – Daniel Saks and Nicolas Desmarais – when they acquired Standing Cloud , a Boulder-based portfolio company of ours. The post AppDirect Is Hiring After Closing a $50 Million Financing appeared first on Feld Thoughts. Earlier this year, we took part in a $50 million Series D investment round in AppDirect.

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

Sharing these pricing expectations early with potential lead investors fundamentally qualifies your conversations, but it also runs the risk of prematurely losing a potential financing partner, or else it can reduce options to maximize your fundraise outcome. So What Should Founders Do?

Does Alternative Finance Exist In Singapore And Hong Kong?

YoungUpstarts

by Anthony Coundouris , trade finance evangelist for ApexPeak. Alternative finance has grown slowly in these countries, because both are the historical treasurers of Asia. In Asia Pacific, the volumes in alternative finance have come from South Korea and China.

Why Founders Should Know How to Code

Steve Blank

I was driving home from the BIO conference in San Diego last month and had lots of time for a phone call with Dave, an ex student and now a founder who wanted to update me on his Customer Discovery progress. His inability to attract a co-founder who could code was a troubling sign.

Financing your business: Debt vs Equity

StartupCFO

So what I would like to do here is layout a more comprehensive framework for the pros and cons of debt versus equity and when you could look at each for financing your business. Therefore, this is often not the starting point for financing your business. Deciding how to finance.

Solo Co-founders

K9 Ventures

Conventional wisdom in the startup world dictates that two founders are ideal for a startup. There are lots of famous pairs of duo co-founders: Larry Page and Sergey Brin, Jerry Yang and David Filo, Hewlett and Packard, Bill Gates and Paul Allen. Three co-founders is acceptable, but anything beyond that the chances of success of the company may actually decrease. Having the right co-founder is perhaps the single most valuable thing in a startup.

Venture Debt Helps Founders Find Stability In Volatile Markets

YFS Magazine

Finance Grow investing money raising capital venture capital venture debtDon't overlook the value of venture debt. As the markets assume a more volatile backdrop we expect the role of venture debt will only grow.

Founders on a Mission

K9 Ventures

Put differently, there are some founders for whom failure simply isn’t an option. I am so proud and honored to recognize one such founder from the K9 portfolio today. Sooinn Lee is the founder and CEO of LocoMotive Labs.

Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

I watched, participated, and suffered through every type of creative financing as companies were struggling to raise capital in this time frame. I suffered through the next financing after implementing a complex structure, or a sale of the company, or a liquidation. I have two simple rules for founders in my head from this experience. Until you are consistently generating positive cash flow, you depend on someone else for financing.

How should a startup founder value her time?

A Smart Bear: Startups and Marketing for Geeks

Almost no startup founder values her time properly. How-To finance productivityConsultants know exactly what their time is worth: their hourly rate. As they say, it’s how much “the market will bear.”

Founder Liquidity

K9 Ventures

Let’s say you’re the founder (I use a solo-founder in my example to keep things simple, but this could just as well apply to a founding team) of a startup called Blood, Sweat and Tears, Inc. If there is one piece of advice I would give to the founders of BST, it is to consider selling a part of their personal stock in the company at that stage. The objective is really to be able to get some risk off the table for the founders and not leave all their eggs in one basket.

Founder Liquidity

K9 Ventures

Let’s say you’re the founder (I use a solo-founder in my example to keep things simple, but this could just as well apply to a founding team) of a startup called Blood, Sweat and Tears, Inc. If there is one piece of advice I would give to the founders of BST, it is to consider selling a part of their personal stock in the company at that stage. The objective is really to be able to get some risk off the table for the founders and not leave all their eggs in one basket.

Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

Most startup founders do not have enough capital to launch their companies and need to raise money at some point. Convertible Debt Financing. Among the most common methods of funding used by startups when raising seed capital is “Convertible Debt Financing.” Raising Seed Capital.

Notes on raising seed financing

Chris Dixon

Last night I taught a class via Skillshare (disclosure: Founder Collective is an investor) about how to raise a seed round. I’ve written ad nauseum on this blog (see contents page) about venture financing so hadn’t planned to blog more on the topic. Any startup founder can tell you the most common question they hear from investors is not about the founders or the product, but “who else is investing?&#.

New Year, New Finances – How To Keep Your Small Business Finances In Control

YoungUpstarts

Instead of letting your businesses’ finances cloud your day-to-day, make the steps to take control this year: revisit, rethink and refuel. An additional resource to seek help from when addressing your finances is the local community banker.

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. On average, the founders who keep the most control over their company make the least amount of money.

Founder's Dilemmas: Equity Splits

www.startuplessonslearned.com

Founders Dilemmas: Equity Splits. The following is an excerpt from HBS Professor Noam Wasserman’s new book, The Founders Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup. How should founders deal with such developments? Lessons Learned. by Eric Ries.

Founder Liquidity and Growth Equity

Non-Linear Growth

I’m seeing more and more growth equity financings come to market with an over-sized component of the financing allocated to existing shareholder liquidity. … Read more › The post Founder Liquidity and Growth Equity appeared first on Non-Linear.

The State Of The Early Stage Financing Market

A VC : Venture Capital and Technology

But I did read an interesting post by Semil Shah where he outlines what he thinks is going on in the early stage financing markets right now. He starts with this observation: Young founders are incredibly influenced by the online brands of certain investors. I am headed out on a bike ride with my daughter this morning and don't have a lot to say today.

Elite Daily Co-Founder Gerard Adams Reveals 6 Things Investors Look For In Startups

YFS Magazine

Editor Picks Finance Grow fundraising investors money raising capital raising startup capital raising venture capitalAs an investor, it’s always been important to me to align with companies whose purpose I believe in, and who clearly demonstrate that they have several things in order.

Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

It should therefore come as no surprise that an asymmetry of information exists, mostly gleaned from experience, between founders and investors in a venture financing deal. For a traditional VC financing round structured as a sale of preferred stock, the best resources I can recommend are the Term Sheet Series by Brad Feld and Jason Mendelson and Startup Company Lawyer by Yokum Taku.

How to Up Your Board Meeting Game as a Founder [Deck Templates 2.0]

View from Seed

But more so, these decks are about one thing: upping your board game as a founder. Some founders hesitate to spin up a board early, maybe due to the perception that investors would try to control the company, maybe out of a concern of putting too many balls in the air at once. Said another way, seed-stage companies can be led by a founder; scaling companies require a CEO. Just as founders work with the board to solve problems, so too can executives in their area of ownership.

Lending Club's Founder Resigns Over Allegations of Deception, Casts Shadow Over Finance Startups

Inc Startups

Renaud Laplanche's sudden and scandalous departure is bad news for his online lender--and the wider industry of fintech

Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. A convertible note financing is not a loan in the conventional sense.

What every entrepreneur should know about financing right now

Version One Ventures

AngelList makes it easier for founders to reach angels and there are hundreds of accelerators and incubators to choose from. Any entrepreneur trying to navigate the financing landscape should be aware of the over-abundance of angel money compared with subsequent rounds. If not, revenue from your customers will be your best source of financing. The post What every entrepreneur should know about financing right now appeared first on Version One Ventures.

2 Essential Finance Truths All Entrepreneurs Need to Remember

Inc Startups

Morri Chowaiki, founder of One Life Products, talks about the importance of creating a sustainable business plan you're confident to pitch to investors

Clarify Lands $1M Financing

Austin Startup