article thumbnail

Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Things like “ participating preferred stock &# in legalese unsurprisingly never actually call out, “hey, this is the participating preferred language.&# We got a3x participating liquidation preference with interest (not participating with a 3x cap, but 3x participating. That’s normal.

Valuation 405
article thumbnail

How to Scale a Venture Capital (or Private Equity) Fund

David Teten

Hire more non-Partner staff. – Hire more Partners. For a VC fund to be actively engaged in a large number of investments, it needs to hire more Partners to sit on more boards. If you’re thinking of hiring a Partner, I suggest see How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How to Form a Corporation

Up and Running

In addition to those two types of hired help, you can get free guidance and support from a local SBDC consultant. Your choice here is to either hire an agent or be your own. If that seems appealing, the good news is that a registered agent can be hired inexpensively ($300 or less) and cover all your needs.

article thumbnail

5 Keys To Mitigating New Venture Tax And Legal Issues

Startup Professionals Musings

To avoid the tax implications of co-mingling personal and business funds and assets, create your business entity before you hire anyone or spend money building the product. You may start as an LLC but find that a potentially high-value investor insists on having preferred stock, which is only available with a C-Corp.

LLC 210
article thumbnail

An Alternative to Board Decks Some Seed VCs Actually Prefer

View from Seed

Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferred stock dashboard. Team: Hires, fires, departures, responsibility changes, major promotions, and your org chart.

article thumbnail

Should You Offer Equity Compensation to Employees?

Up and Running

Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. This type of stock is typically given to founders and early employees with the stock value is near zero. See Also: 10 Tips for Dealing With Startup Stock Options.

Equity 60
article thumbnail

Why Uber is The Revenge of the Founders

Steve Blank

Hire a CEO to Go Public. The VCs would hire a CEO with a track record who looked and acted like the type of CEO Wall Street bankers expected to see in large companies. The role of the independent member was typically to tell the founding CEO that the VCs were hiring a new CEO.). People had to actually pay you for your product.

Founder 245