Growthink Blog

JULY 2, 2010

Which is particularly surprising since Vringo’s CEO and co-founder, Jon Medved, was formerly a venture capitalist himself. And it’s surprising since Vringo had previously raised $17 million in venture capital. Vringo decided to go public on the New York Stock Exchange. Tags: Dave Lavinsky Financing. Vringo sold 2.4

Venture Capital 85

Venture Capital Stock Options New York Angel Investor 85

Scott Edward Walker

JUNE 9, 2011

Introduction This post originally appeared as part of the “ Ask the Attorney ” column I am writing for VentureBeat ; it is another installment of my ongoing series regarding venture capital term sheets.

Term Sheet 60

Term Sheet Conversion Rights Venture Capital Liquidation Preference 60

The Startup Magazine

JUNE 26, 2020

Startup lawyers can help you decide on which structure is the best for you based on your finances, plans and goals. As soon as your start issuing stock of your company, complying with State and Federal Securities Regulations is mandatory. Partnership Agreements. to resolve future conflicts.

Intellectual Property 149

Intellectual Property Startup SEC Stock Options 149

Startup Company Lawyer

MARCH 12, 2009

Any company that raises venture financing will need to be a C corp in order to issue preferred stock. If founders want the benefit of flow through tax treatment with respect to losses prior to an outside financing, an S corp election may make sense as long as there are no entity or non-U.S. citizen/resident stockholders.

LLC 61

LLC Stock Options Preferred Stock Stock 61

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.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing. Start-up | Mondays. Technology | Thursdays.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Scott Edward Walker

APRIL 9, 2012

Introduction We are in the golden age of seed financing. Venture capital funds, seed funds, super angels, angel groups, incubators, and “friends and family” are all playing the seed financing game and investing early in startups in an attempt to land the next Facebook. What is a Convertible Note? price the round).

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

Gust

SEPTEMBER 17, 2014

Me: So, you raised venture capital? It’s like we need a finance 101 course for entrepreneurs. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. Less than you’ll probably grant your most junior employees in stock options?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Tim Keane

JANUARY 12, 2010

  I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] and walked through each proposed term and why it is or isn’t important.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. The cap is irrelevant if the next equity financing is at a valuation below the cap amount.) These options were granted shortly after MySpace, Inc.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Up and Running

JUNE 19, 2015

Almost a year in to it and you have great venture capital investment and you guys are growing, do you look back at that conversation in any different way? They have resources as a person and so they use those resources in their business so they start to mix their personal finance and their business finance.

Cloud 60

Cloud Small Business Silicon Valley Media 60

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

You have your general management meeting and in your general management meeting you talk about product development, about marketing and about finance. But assuming it’s a fair exit, a venture capitalist, and I’m explicitly not saying angel because we could talk about angel and they’re sort of special so that might work out.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

ithacaVC

SEPTEMBER 10, 2012

I recently got a question from a person in a large company who is thinking about joining a startup that expects to raise venture capital. But here is one that I want to focus on in this post: “Can I ask for undiluted stock (non dilution clause)?” Actually, I got many questions.

Dilution 53

Dilution Employee Cap Table Stock 53

Seeing Both Sides

JULY 15, 2009

VCs have an unfair advantage when it comes to financings. A typical start-up company will do 2-4 venture capital financings before a successful exit (or, conversely, an ignomious ending). In the world of VC-backed financings, there are multiple terms that impact the ultimate price of the deal. What is the promote?

Pre-Money Valuation 49

Pre-Money Valuation Option Pool Stock Options Post-Money Valuation 49

VC Adventure

DECEMBER 4, 2009

This conclusion is backed up by the National Venture Capital Association which tracks the impact of private companies who receive institutional venture financing. This will surely result in fewer companies being able to obtain financing (and as far as I can tell provide no meaningful added investor protections).

Accredited Investor 49

Accredited Investor Venture Capital Stock Options Government 49

ithacaVC

FEBRUARY 23, 2011

The MCOP can serve a critical role as founders and other management team members are diluted down by rounds of financing or if their equity is not in the money. The more the company raises the higher the ALP, and thus the higher the hurdle before the common stock held by founders and stock options held by other employees are in the money.

Liquidation Preference 55

Liquidation Preference Management Preferred Stock Dividend 55

BeyondVC

SEPTEMBER 14, 2004

Finance: -Plan vs. budget – income statement, balance sheet, cash flow statement. R&D: -Summary development plan of key features to be delivered for quarter and current progress -Bug report broken out by severity-should also track resolution and time outstanding against prior months/quarters.

Balance Sheet 99

Balance Sheet Technical Review Framework Stock Options 99

thestartuplawyer.com

FEBRUARY 24, 2010

About the Author Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. He obviously never launched a startup and got shafted by a co-founder. Click here to learn more about his practice.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

Seeing Both Sides

OCTOBER 6, 2014

Your venture capital investors and many early employees head for the door and you are left holding the bag. Be clear that the end goal was never an IPO - that is merely a financing event, a means to an end. Give them more stock options, more incentives and more inspiration to go at it hard for another 8-10 years.

IPO 39

IPO Turkey Churn Rate Stock 39

thebarefootvc

MAY 13, 2015

After taking an economics class in college which sparked my interest in business, I changed my focus to a dual degree in finance and communications, with the goal of combining capitalism with media to make an impact on the world. The hidden cost of this (and employee burnout) is one that any investor is all too familiar with.

Silicon Valley 40

Silicon Valley Tanzania New Jersey United States 40

thebarefootvc

MAY 13, 2015

After taking an economics class in college which sparked my interest in business, I changed my focus to a dual degree in finance and communications, with the goal of combining capitalism with media to make an impact on the world. The hidden cost of this (and employee burnout) is one that any investor is all too familiar with.

Silicon Valley 40

Silicon Valley Tanzania New Jersey United States 40