Steve Blank
APRIL 10, 2019
One other thing to note is that all employees – founders, early employees and later ones – all had the same vesting deal – four years – and no one made money on stock options until a “liquidity event ” (a fancy word to mean when the company went public or got sold.) It’s called Growth capital.
Hunter Walker
NOVEMBER 20, 2013
3) The Alternate Liquidity Syndicate. Smaller liquidity events can still be valuable to a fund (very dependent upon size, stage and ownership percentage), but if you’re in the venture business, you’re playing into some variation of the ‘swing for the fences’ mentality. Would Syndicates be a solution?
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Gust
SEPTEMBER 5, 2012
Angel investors don’t expect to get repaid, nor do they really want to get repaid; the return on their investment, if the startup proves a success, will come in conversion to equity followed by an eventual liquidity event (sale or IPO of the company), with a return of at least 5x or 10x the initial investment if all goes well.
Steve Blank
JUNE 11, 2013
If you’re a scalable startup, you want to spend small amounts of money (seed capital) as you run experiments testing your hypotheses. How much do they need to own at a liquidity event? These types of startups are better suited to raising money from friends, family, commercial and government small business loans, etc.
Steve Blank
JUNE 11, 2013
If you’re a scalable startup, you want to spend small amounts of money (seed capital) as you run experiments testing your hypotheses. How much do they need to own at a liquidity event? These types of startups are better suited to raising money from friends, family, commercial and government small business loans, etc.
Expert insights. Personalized for you.
333 
Let's personalize your content