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How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

Additionally, you should put whatever agreement you reach to paper , even if you have not yet incorporated or had your legal counsel draw up the founder stock paperwork. You can then work with your law firm to formally draw up founder common stock paperwork either then or subsequently.

Equity 315
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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

Additionally, you should put whatever agreement you reach to paper, even if you have not yet incorporated or had your legal counsel draw up the founder stock paperwork. You can then work with your law firm to formally draw up founder common stock paperwork either then or subsequently.

Cofounder 255
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A Deep Dive into What Has Really Changed in Venture Capital

Both Sides of the Table

This is cutting it as just 12 years after inception, which is even before Amazon and Google’s big stock-market runs in which these three companies have created $1.64 There are significantly more Internet users and we’re no longer newbies b. trillion in value. Follow the money. And this is about to grow even faster.” Want some context?

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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

Additionally, you should put whatever agreement you reach to paper, even if you have not yet incorporated or had your legal counsel draw up the founder stock paperwork. You can then work with your law firm to formally draw up founder common stock paperwork either then or subsequently.

Cofounder 173
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Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

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. (For more on working with startup lawyers, see Mark Suster’s classic post, How To Work With Lawyers At A Startup.).

Finance 178
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Quickly Unpacking Two Recent Acquisitions (of Cylance; of PlanGrid)

Haystack

Typically in M&A, all-cash offers are more common when the acquirer dwarfs the target in terms of market cap; otherwise, M&A usually involves stock in the mix, which leads us to believe Cylance wouldn’t have accepted anything but cash — which makes sense given the company was reportedly booking $130M/year with 3,500 customers.

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Building a new startup hub

Startup Lessons Learned

They take common stock, not preferred, a fact that the entrepreneurs mentioned to me many times. Provide early seed capital, and be the ones to make those introductions. Every summer, they bring approximately 10 companies to Boulder for an intense "accelerator" experience (dont call it an incubator, or youll get dirty looks).