Facebook's Pay-to-Play: 3 Key Takeaways for Your Business

Inc Startups

Facebook has made it clear that to reach anyone who has "liked" you on its platform, you''ll have to pay for Facebook ads. Organic reach" of content from brands and small businesses has fallen to less than 2 percent of all fans.

Anatomy of a Term Sheet: Pay-to-Play

VC Ready Blog

These posts refer to the model Series A Term Sheet put out by the National Venture Capital Association (NVCA) and available for download here. * * * * * * * * * *. A Pay-to-Play is clearly company-favorable because it penalizes investors who do not pony-up when the company needs more funding, but it also has positive consequences for those investors who do invest in future rounds because it prevents other investors from free-riding.

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The State and Municipal Lobbying and Pay-to-Play Regulation of Pension Fund Management Participants

Recent Buzzes - VC Experts, Inc.

Original Title: The State and Municipal Lobbying and Pay-to-Play Regulation of Pension Fund Management Participants - A Growing Trend? More recently, this trend has included the very specific application of lobbying laws and pay-to-play laws to investment managers.?

How The SEC Is Violating My Wife’s First Amendment Rights

Feld Thoughts

Over the past 24 months, a deplorable activity in the money management business came to light. It got the name “pay to play&# , but was just another form of bribery. However, for some reason, the definition of this expanded to include any campaign contributions to any state or local officials, regardless of the size. It is now even more important to have a firm-wide policy against political contributions to these officials / candidates.

The State and Municipal Lobbying and Pay-to-Play Regulation of Pension Fund Management Participants

Recent Buzzes - VC Experts, Inc.

Over the last several years, there has been a trend toward the enactment of general pay-to-play laws and tighter lobbying, campaign finance and ethics laws by many states and localities.ÿ More recently, this trend has included the very specific application of lobbying laws and pay-to-play laws to investment managers.ÿ

Convertible Debt – Early Versus Late Stage Dynamics

Ask The VC

Traditionally, convertible debt was issued by mid to late stage startups that needed a financing to get them to a place where they believed they could raise more money. The terms were basically the same unless the company was fairing poorly and there was doubt about the ability to raise new capital and / or the bridge was to get the company to an acquisition or even orderly shutdown. Some of these bridge loans also contained terms like pay to play.

The Silliness Of Recapping Seed Rounds

Feld Thoughts

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. They go out to raise a Series A, but there are no takers. One of their angel investors, who happens to be a VC firm, decides to invest another $500,000 in the company. The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company.

$2.5bn market size estimated for virtual goods in the US by 2013.

Lightspeed

Home About Lightspeed Team jump to navigation $2.5bn market size estimated for virtual goods in the US by 2013 August 30, 2009 Posted by jeremyliew in virtual goods. Like Be the first to like this post. to draw in lots of developers.

Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

One of my favorite lines in buried in the middle: “I’ve heard enough companies say “we simply can’t cut costs or it will hurt the long-term potential of the business” to get a wry smile. ” Many companies have hired ahead of their growth rate because they had the cash to do so. “If you need to clean up your own cap table first – while very hard to do – it will make outside funding easier” Again, go read the post now – I’ll wait.

Venture Deals: Chapter 4: Economic Terms of the Term Sheet

Ask The VC

While the valuation of a company, determined by multiplying the number of shares outstanding by the price per share, is one component of the deal, it’s a mistake to focus only on the valuation when considering the economics of a deal. In this chapter we discuss all of the terms that make up the economics of the deal, including price, liquidation preference, pay-to-play, vesting, the employee pool, and antidilution.

32 Questions Developers May Have Forgot to Ask a Startup Founder

SoCal CTO

Almost every day I'm talking to early stage startup founders (see Free Startup CTO Consulting Sessions ) about what they plan to do. I tend to ask a lot of questions, challenge aspects, make suggestions. It needs to be a conversation. How will you be taking this to market?

Anatomy of a Term Sheet: Index

VC Ready Blog

7. Pay-to-Play. 12. Right to Maintain Proportionate Ownership (a/k/a Preemptive Rights). 1. Overview. 2. Nature of a Term Sheet and Summary of Offering Terms. 3. Dividends. 4. Liquidation Preference. 5. Voting Rights and Protective Provisions. 6. Conversion and Anti-dilution. 8. Redemption Rights. 9. Stock Purchase Agreement. 10. Registration Rights. 11. Management Rights and Investor Director Approval.

32 Questions Developers May Have Forgot to Ask a Startup Founder

SoCal CTO

Almost every day I'm talking to early stage startup founders (see Free Startup CTO Consulting Sessions ) about what they plan to do. I tend to ask a lot of questions, challenge aspects, make suggestions. It needs to be a conversation. How will you be taking this to market?

Small Business and Startups: Net Neutrality? Done! (For Now)

crowdSPRING Blog

voted to place Internet Service under Title II of the Telecommunications Act, which means it will be governed as a public utility in the same way that telephone service is currently regulated. What a difference two weeks makes! This past Thursday, the F.C.C.

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Latest Deal Terms for Ice Energy, Inc.

Recent Buzzes - VC Experts, Inc.

By Justin Byers, Lead Business Intelligence Analyst Companies involved in providing smart grid solutions continue to get the attention from investors. earlier this week announced the closing of a Series C funding, and we are going to take a look at this latest round.

8 Reasons Why Startups Should Focus on Digital Strategies in 2017

Brandanew

Using a digital plan to support digital transformation and lead it towards your objectives is the first step to take. Here’s a rundown on what you can do to rise and shine online as a brand, and more importantly, why you do NEED a plan… Not sure where to begin?

What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

I’d like to explain as best I can my opinion on what is going on because most of what I hear from entrepreneurs is not only wrong but is reminiscent of what I heard in 1997-2000. ” and you can see that the balance of caution vs. optimism is 82% to 18%. Reversion to the Mean.

How to Use Social Media to Find the Perfect Employee for Your Business

Up and Running

At Bond Street , we’re experts in term loans , but we cover just about everything related to small business, including how to hire the perfect employees for your new company. For small business owners, committing to a new employee’s salary is daunting.

The 3 Facebook Changes in 2016 SMBs Need to Know

Duct Tape Marketing

The 3 Facebook Changes in 2016 SMBs Need to Know written by Guest Post read more at Duct Tape Marketing. Last year, advertisers only had the option to deliver ads on other mobile apps. This is likely to entice other kinds of businesses to test it out for other campaigns.

The Trouble With Instagram--And Why You Should Be on It

Inc Startups

After all, it''s not set up today to cater to the advertiser at all. Because images they post can link directly back to their websites, and actually convert pinners to purchasers. Not only does your image not link to anything, but you cannot use links in the captions.

Q2 2011 Non-Silicon Valley Deal Terms

Recent Buzzes - VC Experts, Inc.

Fenwick & West LLP , a national law firm that provides comprehensive legal services to technology and life sciences clients of national and international prominence, recently put out their Q2 2011 Bay Area Venture Deal Terms report. is still the more popular choice as compared to Full Ratchet.

5 Predictions for Social Media in 2014

Inc Startups

My kids are excited about the presents to come from Santa. Pay to play Facebook has changed its news feed algorithm in a way that hurts organic reach. In 2014, we will see increased pressures on companies of all sizes to pay to sponsor their posts to get more visibility.

Entrepreneurs are Everywhere Show No. 25: Nigel and Vaughn Caldon and Kerry Frank

Steve Blank

Getting people to buy in to your startup vision takes a thick skin, perseverance and willingness to learn. Entrepreneurs refuse to take no for an answer. It follows the journeys of founders who share what it takes to build a startup – from restaurants to rocket scientists, to online gifts to online groceries and more. Listen to the full interviews with Nigel and Vaughn and with Kerry by downloading them from SoundCloud here and here.

Ask These 4 Questions Before Launching Your Facebook Ad

Inc Startups

You don''t have to spend an arm and a leg on Facebook advertising. An analysis by PR firm Ogilvy & Mather found that companies'' Facebook posts dropped from reaching 12 percent of their followers (already a super low number) to just 6 percent over just a few months. That''s right, you''ve got to pay to play. The good news is you don''t have to spend an arm and a leg on Facebook advertising. More clicks to your website?

17 Entrepreneurs Celebrate Summer Business Accomplishments

Hearpreneur

The time flew by and as school starts, the weather changes and the temperature drops, we decided to connect with entrepreneurs and business owners to see how their summers went and what were some of their accomplishments. We look forward to Cosmoprof every year! Summer is over.

What #AskChevron Means For Twitter, Activists, and Brands

Inc Startups

Head on over to Twitter right now and you''ll see the promoted trend, #AskChevron. We talk all the time about brand failures on social media--how brands set up social promotions that leave them vulnerable to unanticipated, undesired negative feedback. When the NYPD asked users to share a photo with a New York Police Officer, they didn''t expect the onslaught of pictures of brutality. Chevron has no control, and the company behind this has the dollars to support the campaign.

SEC Adopts Final Rules Regarding Investment Adviser Registration

Recent Buzzes - VC Experts, Inc.

Prior to the Dodd-Frank Act, investment advisers commonly relied on an exemption from registration with the SEC under Section 203(b)(3) of the Investment Advisers Act of 1940 (the "Investment Advisers Act"), which is commonly referred to as the "private adviser exemption." Effective July 21, 2011, the Dodd-Frank Act will eliminate this exemption and many previously unregistered investment advisers will be required to register with the SEC. Changes to Form ADV.

Thoughts on Facebook Slingshot

Eric Friedman

( cross posted to Medium to see what happens). At it’s core, it’s a photo and video messaging tool that lets you very easily create content to share with friends. Noticeably missing from this process is an easy signup with Facebook button that would connect you to your FB graph.

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Entrepreneurs and VCs: Turning the Tables

Inc Startups

Is it a bubble, or is it just a darn good time to be seeking venture financing? An ‘up’ round (as opposed to a ‘down’ round) signifies that the company is worth more this time around than it was during its previous investment round.

Are Paid Content Distribution Platforms Cost Effective?

Duct Tape Marketing

In order for that content to be effective you need an audience, you need eyeballs and traffic. Social media is becoming an increasingly pay-to-play environment, especially on Facebook. Organic traffic to Pages is below 2%. Ask to be published as a guest blogger.

Become a World-Changing Thought Leader

Inc Startups

Stern & Associates, a Cranford, New Jersey public-relations firm whose clients include uber-visionary Clayton Christensen, advises business leaders who want to become known as thought leaders. And they have to be able to prove that expertise with a track record.

What Does a CEO Do, Anyway?

OnlyOnce

I’d like to build on that premise by adding two other dimensions to the list. Fred was kind enough to offer me a “guest blogger&# spot, so this post also appears today on his blog as well. Setting vision and strategy are key…but in order to do that, the CEO must remember the principle of NIHITO (Nothing Interesting Happens in the Office) and must spend time in-market. Get to know competitors well. What Does a CEO Do, Anyway?

Venture Capital Survey - Silicon Valley Fourth Quarter 2010

Recent Buzzes - VC Experts, Inc.

Up rounds exceeded down rounds in 4Q10 67% to 21%, with 12% of rounds flat. That represented a significant increase in the percentage of up rounds versus down rounds from 3Q10, when up rounds exceeded down rounds 52% to 30%, with 18% of rounds flat. Third party reports on the venture industry generally reported an improving venture investment and liquidity environment in 4Q10 and 2010 overall, but the environment for venture fund capital-raising continues to be difficult.?

Venture Capital Term Sheets: Conversion Rights

Scott Edward Walker

Here are the issues I have addressed to date: common mistakes dealing with VC’s valuation liquidation preferences stock options exploding term sheets and no-shop provisions anti-dilution provisions dividends Board control protective provisions drag-along provisions pay-to-play and pull-up provisions In today’s post, I examine conversion rights of investors. A conversion right is the right to convert shares of preferred stock into shares of common stock.

The macro view and the micro view

The Equity Kicker

The free-to-play model is far more effective for monetization than a pay-to-play model. My friends love Airbnb because they get to stay in cheaper and more unique places than what traditional hotels offer.

Anatomy of a Term Sheet: Right to Maintain Proportionate Ownership (a/k/a Preemptive Rights)

VC Ready Blog

These posts refer to the model Series A Term Sheet put out by the National Venture Capital Association (NVCA) and available for download here. * * * * * * * * * *. As a preliminary matter, note that the “Right to Maintain Proportionate Ownership” is more commonly referred to as “Preemptive Rights” or the “Right of First Offer.” Note that limiting the scope of the Preemptive Rights is considerably less important where the investors are subject to a Pay-to-Pay.

Why Foxtel is Doomed

Start Up Blog

I am a Foxtel subscriber and every day I get that little bit closer to turning off my $100 per month payment. Sure, their penetration in Australia might be growing, but we are on the precipice of disruptive change to Television, in a way that Foxtel must respond to if they want to survive. And their response needs to be before the impending disruption, or just like the music industry, they’ll be wondering what happened. I was happy to pay for it.

What Accelerators Really Want in Start-up Founders

Inc Startups

Five tech start-up accelerators reveal what they look for in candidates--and what they try to avoid. In case you haven't been paying attention, accelerator programs like Y Combinator and TechStars have become a crucial part of the tech start-up community.

Venture Capital Deal Buzz - Don't Rule Out LivingSocial

Recent Buzzes - VC Experts, Inc.

The Series D is in addition to a prior $49 million from Revolution Fund, Grotech Ventures and U.S. According to VC Experts Valuation & Deal Term Database , the company has raised a total of $242.24 LivingSocial plans to use its Amazon bucks to continue its expansion into new markets. When LivingSocial's Chicago-based competitor banked its $950 million, the company expressed plans to expand its offerings deeper into Europe, the Middle East and Asia.

Startup anti-pattern: platform risk

High Contrast

One of the fastest ways for a startup to grow has always been to ride on the shoulders of a successful platform: from Microsoft/OSS in software to AWS in cloud computing to iOS/Android in mobile to Facebook/Twitter/Pinterest in social to IAB/Google in advertising and the many SaaS players. The basic reality is that platform companies will do whatever it takes to win and they typically don’t care much about the collateral damage they cause.

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