Feld Thoughts

JULY 11, 2010

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.

SEC 291

SEC Pay to Play Colorado Campaign 291

Haystack

OCTOBER 7, 2018

The list is also likely not complete (I’m not trying to create a comprehensive list), but ones I’d specifically cite in the Bay Area include Aspect, Defy, Bullpen, Felicis, Slow, Amplified, ENIAC, and Craft (list below).

Cap Table 142

Cap Table Portfolio Pay to Play Government 142

Brandanew

NOVEMBER 22, 2016

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?

Startup 213

Startup Affiliate PPC Social Media 213

A Crowded Space

MAY 31, 2016

All of these entities have been buying small pieces of preferred shares with $100K - $1M checks and have been doing phenomenally well when there was tons of Series A and Series B money to go around. The majority of the seed companies they funded went on to raise later rounds at often big markups. But, this year we’ve seen the greed of the last several years switch to fear. Given the fear by many investors, it’s getting harder for companies to raise more capital.

Cram Down 76

Cram Down Warrant Pay to Play Angel Investor 76

YoungUpstarts

OCTOBER 15, 2018

With social media a marketing staple for businesses in all industries and across all parts of the globe, it has become more competitively critical than ever for brands to get their acts together. Do you want to position your company for all of the benefits social media can deliver?

Social Media 219

Social Media Media Channel Audience 219

Feld Thoughts

JULY 14, 2015

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.

Recapitalization 330

Recapitalization Cap Table Pre-Money Valuation Valuation 330

SoCal CTO

AUGUST 4, 2011

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?

Developer 408

Developer Founder Oauth Viral 408

SoCal CTO

AUGUST 4, 2011

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?

Developer 396

Developer Founder Oauth Viral 396

The Equity Kicker

MARCH 18, 2014

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.

eCommerce 105

eCommerce Framework Pay to Play Entrepreneur 105

Up and Running

APRIL 3, 2017

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.

Social Media 147

Social Media Employee Media Hiring 147

Feld Thoughts

SEPTEMBER 8, 2010

There were a bunch of good comments that caused me to realize that I wrote the post from the perspective of a VC, not an entrepreneur. Early stage VCs are often expected to play at least pro-rata in following rounds. But, when companies go sideways or struggle, the early investors are often expected, by their co-investors – to continue to participate pro-rata until the company either succeeds or fails. But to hand wave over the issue is illogical.

Entrepreneur 270

Entrepreneur Angel Investor Early Stage Equity 270

crowdSPRING Blog

MARCH 2, 2015

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.

.Net 94

.Net Small Business Mobile Washington 94

Start Up Blog

OCTOBER 19, 2010

I’ve never been a fan of the so called ‘Free’ business mode l, and often a bigger fan of the so called ‘pay to play’ business model. While catching up with Mick Liubinskas of Pollenizer fame I heard a much better way to describe what all business models on the web should do. It just reminds us that all startups must build something of value and then find a way to capture that value.

Pay to Play 67

Pay to Play Business Model Advertising Web 67

Eric Friedman

JUNE 18, 2014

( 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.

Video 116

Video Pay to Play Metrics Mobile 116

Berkonomics

APRIL 28, 2012

These include forcing early investors to “pay to play,” or invest their pre-rata amounts to keep their original percentages, or suffer the consequences of being diluted to the extreme and losing preferences in a liquidation. The reaction to bad news by VC’s controlling the board by virtue of their power to supply additional money, often includes the threat – or reality – of starting the process to find a replacement CEO.

Dilution 62

Dilution Angel Investor Early Stage Pay to Play 62

ithacaVC

JUNE 28, 2011

When a company has a bunch of investors (like the above hypo), it is important to understand that it is likely that not all of them will want to invest in future rounds (and this is particularly true with a mix of institutional and individual investors). Even is the Series B is an “up” round (simply meaning that the per share price of the Series B is higher than that of the Series A), some investors might not want to participate.

Warrant 48

Warrant Stock Dilution Liquidation Preference 48

Steve Blank

MARCH 22, 2016

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.

Customer Development 176

Customer Development North America Entrepreneur Silicon Valley 176

Both Sides of the Table

SEPTEMBER 16, 2010

This is the fourth article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). Part 1 – Access to Great Deal Flow – is here. Easier to start companies, yes. Pay to play.

Cap Table 316

Cap Table Dilution Liquidation Preference Lean 316

Both Sides of the Table

MARCH 5, 2010

Jason Calacanis started this initiative in response to the pay-to-play network of angel events that he despised. I’m a huge supporter of his initiative to help end this practice. would acknowledge – they needed to get to the demo more quickly.

San Francisco 310

San Francisco Los Angeles Aggregator Vertical 310

Duct Tape Marketing

OCTOBER 27, 2016

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.

Algorithm 76

Algorithm Audience Advertising Mobile 76

Both Sides of the Table

FEBRUARY 14, 2016

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.

Valuation 312

Valuation Startup Iran Down Round 312

Both Sides of the Table

SEPTEMBER 15, 2010

This is the third article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). Part 1 – Access to Great Deal Flow – is here. And he argues that you need to have some “comparative advantage&# as an investor.

Angel Investor 325

Angel Investor Cap Table IPO Early Stage 325

OnlyOnce

AUGUST 4, 2011

The value is more complicated than some of the other ones we have, and although it is short, it has three components that worth breaking down: Making commitments: Goal setting, whether big company-wide goals, or smaller “I’ll have it to you by Tuesday&# goals, is the foundation for a well-run, aligned, and fast-paced organization. The prior two parts of this value statement are, in my mind, pay to play. More to come over time. Keeping Commitments.

Audience 55

Audience Pay to Play Leadership Management 55

Hearpreneur

SEPTEMBER 9, 2015

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.

Las Vegas 136

Las Vegas Entrepreneur Phoenix Los Angeles 136

Both Sides of the Table

SEPTEMBER 29, 2009

When venture capitalists scale back investing activities it can be very swift and leave many companies that are in the process of fund raising hung out to dry. Just ask anybody who was trying to close funding the fateful week of September 11, 2001 or even March 2000.

Burn Rate 311

Burn Rate Valuation Pre-Money Valuation Private Equity 311

Both Sides of the Table

SEPTEMBER 14, 2010

This is the third article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). Part 1 – Access to Great Deal Flow – is here. And he argues that you need to have some “comparative advantage&# as an investor.

Angel Investor 212

Angel Investor Cap Table IPO Early Stage 212

OnlyOnce

SEPTEMBER 6, 2010

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?

Salary 105

Salary Pay to Play Metrics Matching 105

Austin Startup

FEBRUARY 1, 2018

The Dash wearable sensor turns field performance into FIFA-like stats to participate at competitions, challenges and paves the way to global recognition. What does DashTag hope to accomplish in 2018? We want to bring a new experience to U.S.

Netherlands 68

Netherlands Philadelphia CTO Agile 68

Duct Tape Marketing

APRIL 30, 2015

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.

Distribution 67

Distribution Cost Social Media Audience 67

Scott Edward Walker

JUNE 9, 2011

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.

Term Sheet 53

Term Sheet Conversion Rights Venture Capital Conversion 53

Duct Tape Marketing

FEBRUARY 14, 2018

Thanks to John’s generous promotion of my content over the years, many of you probably know I’ve spent most of my career in search engine optimization. But from first-hand experience, I can tell you that neither of those is a good reason to ignore its effectiveness!

Email 56

Email Campaign SEO Algorithm 56

Scott Edward Walker

SEPTEMBER 14, 2011

The Investors’ Right to Walk VC Term Sheets Are Non-Binding. It is important for founders to understand that VC term sheets are usually deemed to be “non-binding” (other than perhaps a few provisions, such as the “no-shop” provision and legal fees and expenses).

Term Sheet 83

Term Sheet Liquidation Preference Due Diligence Redemption 83

ithacaVC

FEBRUARY 20, 2011

This sounds obvious – make sure to know the mindset of your investors. In addition to the “entrepreneur to investor” relationship, the “investor to investor” mindset relationship is critical. For example, if a co-investor (call it Fund Y) is a small fund and knows that it will not be able to keep up with it prorata investment share throughout the life of investment it would be critical for its co-investors to understand that going in.

Bridge Financing 40

Bridge Financing IPO Finance Pay to Play 40

This is going to be BIG.

APRIL 12, 2010

Last week, I got a chance to be the guy on the ground for Open Angel Forum NYC. First off, I have to thank those who made it possible—namely our sponsors and our host. Six companies and twenty angels were able to connect up without the friction and artificial scarcity created by the “pay to play” model and it was all made possible by the good folks at Joyent , Cooley , and Winter Wyman. Looking forward to doing at least two more of these in 2010!

Angel Investor 74

Angel Investor Hosting Pay to Play Business Model 74

Start Up Blog

NOVEMBER 6, 2011

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.

Australia 102

Australia Demand Channel Pay to Play 102

Professor VC

MARCH 11, 2013

We decided to launch SocialParent at the conference (full disclosure: I'm an adviser, part-time CFO and investor). For more info download the app or listen to SocialParent CEO explain the service on PandoDaily below). Hopefully, we can turn that fake investment to real financing.

Silicon Valley 36

Silicon Valley San Francisco SEC Social Network 36

This is going to be BIG.

FEBRUARY 7, 2010

First Growth Venture Network formed to mentor high potential seed and early stage companies. First Round Capital makes 11 new investments in NYC, hires me to be here fulltime, and announces a new NYC office in Union Square. I’m excited to announce that the Open Angel Forum is coming to NYC. Well, remember the dust up a while back with the backlash against “pay to play” pitch events where startups had to pay to meet angels?

New York City 69

New York City New York Angel Investor Early Stage 69

ithacaVC

DECEMBER 14, 2011

Instead of heading for my meeting (does not start for a few hours), I decided to hang out in the food court for a bit and watch. Continuing with the “No Mess” theme of commenting on things that give VCs pause, I thought it would be good to touch on liquidation preference. Yes, it is possible to issue preferred stock without liquidation preference, but that is rarely done. Yet, it is able to attract more investment capital. 3 million) to Series A LP. ($10

Liquidation Preference 46

Liquidation Preference LP Preferred Stock Liquidity Event 46

Scott Edward Walker

JULY 27, 2011

These are rights granted to stockholders pursuant to the respective laws of the company’s State of incorporation and are often the only rights that minority common stockholders have. Indeed, whether a minority common stockholder is a founder, an advisor or even a friends/family investor, such stockholder will usually not be contractually granted any of the rights that are typically granted to preferred stockholders. 2) Right to Bring a Derivative Claim.

Delaware 46

Delaware Liquidation Preference Los Angeles San Francisco 46

Scott Edward Walker

JULY 7, 2011

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 conversion rights In today’s post, I examine the redemption rights of investors.

Term Sheet 46

Term Sheet Redemption Venture Capital Dividend 46

Fred Destin

AUGUST 11, 2009

Yes, it's a nice environment to be starting the winners of tomorrow and seed funding has not dried up. And yes, Wellington and friends feel Spotify is the [Google][Apple] of media and pay (supposedly) €200m pre for the privilege of working with the excellent Messieurs Ek and Lorentzon. A number of effects are at work here: LPs closed for new business : Many funds are either failing to raise or are deciding to postpone their fundraising. Don't believe the hype.

Syndicate 29

Syndicate Syndication .Net Bootstrapping 29

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.   This frequently leads to lots of expense just to get to an understanding of what’s being asked for. A lack of understanding can lead to expensive and difficult negotiations when more clarity earlier in the process may have produced a more efficient and less difficult result. Subscribe to this blogs feed.

Term Sheet 65

Term Sheet Valuation Dividend IRR 65

blog.simeonov.com

FEBRUARY 22, 2010

I have been thinking a lot recently about how to apply agile development principles to investing and key aspects of startup development such as team building. The same question came up a few times in different forms in the comments to the second post: @Nivi. This is a complex topic that has a business and legal side to it. There are a lot of possibilities and variations that need to be thought through and for that you need legal and tax advice.

Founder 42

Founder Vesting Recapitalization Equity 42