Berkonomics

DECEMBER 20, 2018

They will be more willing to pay a royalty fee if your product gets them to market earlier or is protected by patent to create a barrier to their competition. If a continuing fee, the license could be based upon units of the product incorporating your IP. How do I appraise my intellectual property to estimate royalty rates?

IP 54

IP Intellectual Property Investment Bankers Product 54

Berkonomics

DECEMBER 20, 2018

They will be more willing to pay a royalty fee if your product gets them to market earlier or is protected by patent to create a barrier to their competition. If a continuing fee, the license could be based upon units of the product incorporating your IP. How do I appraise my intellectual property to estimate royalty rates?

IP 48

IP Intellectual Property Investment Bankers Product 48

Lightspeed Venture Partners

OCTOBER 7, 2012

Week three’s breakdown covered topics like how hard momentum is to turn around, and how participating preferred stock works. The first company started as a BBQ catering business, and eventually focused in on their most popular product, a dip made of blended up chicken plus various sauces. BACK 9 DIPS.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

YoungUpstarts

JUNE 26, 2020

Going all the way back to Yahoo or Microsoft, the initial products (a directory for a nascent tech called the World Wide Web, and Microsoft BASIC,) didn’t look like billion dollar products at all. a game, we are looking for a product that ends up becoming wildly popular, more popular than anyone thought it could be in the early days.

Finance 205

Finance Silicon Valley Valuation Startup 205

Agile VC

APRIL 17, 2011

Kayak was started here in my backyard of Boston… co-founder & CTO Paul English and the product/engineering team is based here in Concord MA. 5) High Productivity: Kayak had 148 employees at the end of 2010. One can infer valuations based on per share prices of preferred stock and oustanding common shares (~5.3M

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

View from Seed

OCTOBER 15, 2014

Include both positives and negatives for a more productive board conversation, which is especially critical in the seed stage since nearly everything is in “figure it out” mode. The Challenges/Setbacks section should be completely transparent to set up a candid, productive discussion. Section 4: Product Roadmap.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

Startup Professionals Musings

AUGUST 1, 2016

Getting investors to trust you with their money is always a challenge, and it’s even more difficult in the early stages, where you don’t have a significant revenue stream, a few customers, or maybe even a product yet. Investors are looking to buy a chunk of the business, not the product. Dysfunctional or non-functional team members.

Due Diligence 120

Due Diligence Intellectual Property Preferred Stock Seed Stage 120

Up and Running

AUGUST 28, 2019

Don’t let an overly-specific name restrict your product offerings later. . LegalZoom also provides many related services and products that might help guide your new business in the right direction. . This article will not delve into the more complex options and requirements for a corporation’s stock.

Delaware 83

Delaware Stock Nevada Technical Review 83

Steve Blank

OCTOBER 24, 2017

Twenty-five years ago, to go public you had to sell stuff – not just acquire users or have freemium products. People had to actually pay you for your product. This required a repeatable and scalable sales process, which required a professional sales staff and a product stable enough that customers wouldn’t return it.

Founder 245

Founder Technical Review CTO Hire IPO 245

Startup Professionals Musings

MARCH 11, 2013

Incorporate your startup after the business plan, but before you spend a dollar on product development. For example, you and your partner may be perfectly happy with an LLC, but venture capital or Angel investors may insist on having “preferred” stock, forcing an upgrade to a C-Corp.

LLC 234

LLC Nevada Delaware Limited Liability Company 234

Agile VC

FEBRUARY 28, 2013

increasing dividends or issuing preferred stock). The three obvious buckets are of course to invest heavily in new products (the Apple TV or iWatch or whatever), return cash to shareholders (via dividends, buybacks, new class of preferred shares, etc), or acquire stuff.

Hungary 168

Hungary Dividend Vertical Preferred Stock 168

Both Sides of the Table

AUGUST 30, 2010

Funnily enough I just answered this question yesterday on Quora when somebody asked, “Why would an early-stage investor specifically NOT prefer a convertible note structure to straight equity (e.g. a priced/valued preferred stock financing)?&#. Here is my answer with some minor editing: _.

Equity 319

Equity Early Stage Angel Investor Valuation 319

Up and Running

DECEMBER 1, 2015

Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. Hire people that are passionate about the product or service you offer. I’ll go into the difference between these in just a moment. Types of equity compensation.

Equity 60

Equity Employee Stock Options Vesting 60

Growthink Blog

APRIL 7, 2010

FreshPlanet is not some ultra-unique product or company. It's just two successful entrepreneurs trying to improve on products in an established industry. The name "Series A" refers to the class of preferred stock that you sell to investors in return for their cash. I'm not wowed by any stretch by FreshPlanet.

Angel Investor 54

Angel Investor Preferred Stock Venture Capital Common Stock 54

Both Sides of the Table

MARCH 21, 2010

BigCo calls you to review your product and decides they want to use you. Let’s say you give a warrant to a channel partner to sell your product. Make the warrants for common stock and not preferred stock. This is the same as with employee stock options. Common Mistakes.

Warrant 298

Warrant Dilution Startup Stock Options 298

Andrew Payne

JUNE 5, 2010

“Growth” investors focus on the idea: the team, market, and product. In contrast, value investors focus on the “deal”: investor rights & protections, aggressive preferred stock elements, etc. I’ve found venture investors can be categorized among similar lines.

Preferred Stock 60

Preferred Stock Stock Startup Portfolio 60

Steve Blank

APRIL 10, 2019

We slept under the tables, and pulled all-nighters to get to first customer ship, man the booths at trade shows or ship products to make quarterly revenue – all because it was “our” company. In the past the founders and employees were aligned with the same type of common stock grant, and it was the VCs who got preferential stock treatment.

Stock Options 333

Stock Options Stock Vesting Common Stock 333

Lightspeed Venture Partners

OCTOBER 1, 2012

The entrepreneur claimed that her patent was weak and as a result competitors had copied her product and were collectively doing $30-40M in sales. The company has sold $330k of product over the last two years, all online, mostly to ballroom dancers, where the product has developed a niche following. Last year it did $3.9M

Pre-Money Valuation 158

Pre-Money Valuation Valuation Participating Preferred Preferred Stock 158

www.quora.com

JANUARY 16, 2011

Greg Martin • 9:35am on Thursday For the ranges of negotiability and other considerations in the Preferred Stock Term Sheet, you may also want to review the following: [link] /bartsl. What are some good examples of startup product demo videos? You can download it off my dropbox here: [link] 06322/T. PDF in email?

Term Sheet 41

Term Sheet Startup Angel Investor Wiki 41

Growthink Blog

MAY 10, 2012

Stage #2: Seed Funding Seed funding (also called seed capital) typically ranges from $100,000 to $500,000 and is often provided by angel investors, and is usually structured as convertible notes or common stock. That is, you'll use the funding to build a product or service and prove that customers want to buy it.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Both Sides of the Table

APRIL 6, 2020

The US government believes that keeping more workers employed, even if they’re not immediately productive due to WFH (work from home) or loss of revenue is better than all of these employees being laid off, where they will likely seek relief via unemployment insurance claims. The goal of the program is in the name?—?payroll

Programming 279

Programming Affiliate SBA Government 279

ithacaVC

APRIL 25, 2012

Instead, I suggest something like this: “We expect a valuation commensurate with our state of product readiness and company maturity. However, stating a desired pre-money valuation early in the process is not a good idea. Here is why. We look forward to discussing that in more detail when your interest level merits”.

Valuation 49

Valuation Pre-Money Valuation Liquidation Preference Preferred Stock 49

Startup Company Lawyer

JULY 20, 2009

Although it is possible to have pre-incorporation agreements to grant equity upon incorporation, it is simply easier to incorporate a company and grant stock options or equity to satisfy these promises. Launching a service/product and general liability issues. Obtaining visas. If a non-U.S.

IP 67

IP Stock Options Preferred Stock Capital Gains 67

thestartuplawyer.com

FEBRUARY 24, 2010

We entrepreneurs constantly try to refine our product or model, so it is only natural to think that we should refine ourselves. Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM Leave a Reply Click here to cancel reply.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

The Startup Lawyer

FEBRUARY 4, 2011

Most incubators take common stock and sit “side-by-side&# with the founders, but some may want some (weak) preferred stock and/or dilution protection. If so, check out the lay of the land to determine if your startup can be productive in the office space. Other incubators may want to set up an option pool.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

abovethecrowd.com

MAY 20, 2013

There are many synergies – different geographic strengths, different core customer bases, and different product strengths. There are common stock, common options, and as many as three to five different layers of preferred stock, each with a specific liquidation preference.

Merger 53

Merger Institutional Investors Liquidation Preference Preferred Stock 53

Scott Edward Walker

JULY 27, 2011

Delaware law, however, recognizes a “futility” exception and excuses demand if the stockholder alleges particularized facts creating a reasonable doubt that the directors are disinterested and independent or that the challenged transaction “was otherwise the product of a valid business judgment.”

Delaware 49

Delaware Liquidation Preference Redemption Los Angeles 49

Up and Running

SEPTEMBER 20, 2021

Furthermore, there are various forms of equity, such as preferred stock, common stock, and convertible notes, which influence the present and potential future investors. Preference shares. A class of stock with special rights as described in your startup is called preference shares. Convertible notes.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Professor VC

DECEMBER 26, 2012

I've had a couple of deals where investors were paid out a multiple on exit and in a better position than if holding preferred stock, where the payout would have been subject to escrow and over multiple years. Is it a good thing that so many entrepreneurs are able to get $250K - $1.5M in seed financing? If it works, great.

Finance 48

Finance Angel Investor Private Equity Preferred Stock 48

Up and Running

MAY 23, 2016

Noah has been a key figure in the making of LivePlan, our own SaaS product. A description of the problem you’re solving for your customers, and your solution to the problem, which is usually your product or service. In the tactics section, list your sales channels and describe how you will be selling your products.

Software Review 74

Software Review Software Delaware Forecast 74

Hunter Walker

SEPTEMBER 29, 2022

As former product managers Satya and I lean towards having frameworks for these sorts of decisions, for both consistency and speed in internal operations. All the preferred stock is pari passu and behaving honorably in the best interest of the company?

Venture Capital 122

Venture Capital Cap Table LP Equity 122

Startup Company Lawyer

APRIL 23, 2009

Startup companies consume resources intelligently, put people to work in efficient ways, and produce market driven products at lower costs. Super-voting common stock is sometimes seen in companies where founders or a family wish to maintain control of a company after obtaining outside investment. Protective provisions.

Common Stock 33

Common Stock Stock Dividend Delaware 33

ReadWriteStart

JANUARY 28, 2022

These characteristics, comparable to those found in the fixed income market, can convert into common stock, call clauses, and other features. Warrants are a kind of equity that are often attached to a corporate bond issuance or preferred stock to make the transaction more appealing to investors. Equity for Co-founders.

Valuation 108

Valuation Equity Warrant Common Stock 108

Tim Keane

APRIL 12, 2006

Are you able to explain why your product is a compelling purchase for the customer, and how the customer will make buying decisions? What is being replaced by this new product?) Preferred Stock is the most usual form of investment today. What is being replaced by this new product?)

Entrepreneur 60

Entrepreneur Valuation Sweat Equity Common Stock 60

Gust

AUGUST 6, 2014

As such, this could cover many different things, such as: Your parents loaning you money to cover your expenses while you code your product. two angel groups investing money in Series Seed Preferred stock purchase. a single venture capital fund putting in the full amount as Series A Convertible Preferred investment.

Term Sheet 170

Term Sheet Lead Investor Preferred Stock Common Stock 170

Scott Edward Walker

NOVEMBER 26, 2017

The way the investor thinks about it is that, if you can’t figure out your way to network your way to [an investor],… then you’re unlikely to be able to network your way into hiring a great team, or network your way into selling your product to customers. (at www.youtube.com/watch?v=NEOR0AJsziE. v=NEOR0AJsziE.

Term Sheet 63

Term Sheet San Francisco Founder Investment Bankers 63

www.paulgraham.com

APRIL 28, 2010

Then you can gradually transformyourself from a consulting company into a product company, and haveyour clients pay your development expenses. To be a startup, a company hasto be a product business, not a service business. After ten weeks work the three friends have built a prototype thatgives one a taste of what their product will do.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76