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Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

For most startup employee’s startup stock options are now a bad deal. Why Startups Offer Stock Options. In tech startups stock options were here almost from the beginning, first offered to the founders in 1957 at Fairchild Semiconductor , the first chip startup in Silicon Valley. Not everyone got the same amount of stock.

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NextView’s Greatest Hits

View from Seed

Magic Graph: How Much Seed Capital Should You Raise? “At some point, an entrepreneur begins to exhaust her network, and her network’s network, and the incremental hours devoted to fundraising will begin to yield less capital raised than the previous.” Why Do Consumer IPOs and B2B IPOs Get Treated Differently?

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A Deep Dive into What Has Really Changed in Venture Capital

Both Sides of the Table

This huge increase of capital is really just money that used to be invested post-IPO, so more value is captured by VCs who traditionally sold post-IPO In a way we see this late-stage capital as a different market segment than traditional venture capital but it gets lumped into the same classification.

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Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

Raising Seed Capital. Most startup founders do not have enough capital to launch their companies and need to raise money at some point. The return only happens when there is an exit via acquisition or an IPO. Raising Angel Capital. 3) Giving non-voting stock. 2) Giving equity in the company.

Finance 93
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JOBS Act to Change Startup Funding Landscape

ReadWriteStart

IPOs by year, 1980-2011, with pre-IPO last 12-month sales less than (small firms) or greater than (large firms) $50 million (2009 purchasing power). But it could affect one thing right away: the level of buzz and information surrounding young IPOs, which no longer have to keep mum. Number of U.S. Credit: Prof.

IPO 121
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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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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

Like any promissory note, it bears interest (usually at a nominal rate) and has a maturity date on which the loan must be repaid if it hasn’t been converted to stock (typically around 18 months). This is true, although interest is generally paid in stock upon conversion. How can this possibly make sense?

Finance 134