article thumbnail

Corporation or LLC? Business Organizations for Tech Startups.

YoungUpstarts

In the tech startup context, you’ll typically choose between a Corporation and a Limited Liability Company (“LLC”). This can also vary as you grow and as some owners pull back from managing the LLC. Stocks are issued at the time the company is formed, and more can be issued over time. Management.

LLC 100
article thumbnail

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

David Teten

Managers of VC funds typically want to grow their business aggressively, just like the founders we back. This is a model used in at least one case by China’s third-largest private equity firm, China Science & Merchants Investment Management Group ($12 billion+ AUM), which funded in 2015 CSC Upshot, a $400m seed fund through AngelList.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

John Borchers, Co-founder and Managing Partner of Decathlon Capital, claims to be the largest revenue-based financing investor in the US. I asked Michael Hoffman, Partner and General Counsel of Feenix, how he compared his firm with tech-enabled Merchant Cash Advance companies, e.g., Clearbanc , C2FO , Shopify Capital , etc.

Revenue 60
article thumbnail

How to Form a Corporation

Up and Running

We’ll review some new language and concepts in this process, but once you’re done, you may never need to think about this stuff again. . Having these experienced brains reviewing your business plan can help ensure you don’t waste time and money on what is really a cool hobby or rewarding social venture masquerading as a great business idea.

article thumbnail

Venture Capital Q&A Session

Both Sides of the Table

People buy companies for 3 primary reasons: 1) they want the management team / talent 2) they want the technology or 3) they want the market traction (revenue, customer base, profits, etc). The downside is that people need to buy their stock. In fact, far better if you haven’t raised venture capital. Do it early.

article thumbnail

Why Uber is The Revenge of the Founders

Steve Blank

A version of this article is in the Harvard Business Review. Technology cycles have become a treadmill, and for startups to survive they need to be on a continuous innovation cycle. 20th Century Tech Liquidity = Initial Public Offering. Technology Cycles Measured in Years. This seems to be occurring more and more.

Founder 245
article thumbnail

Equity for Consultants – Keep it Simple!

www.mattbartus.com

People tend to underestimate how much record keeping is involved with managing employees and consultants, and this just adds an unacceptable extra burden. First, you’d probably want them to receive common stock, not preferred stock (which is the likely next round). Keep on rocking! link] Matt Bartus. Thanks Casey!

Equity 40