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Three Startup Financing Myths You Should Avoid

YoungUpstarts

Here are three pieces of advice that are tossed around Silicon Valley as if they are gospel, but they are really Startup Myths. I don’t know exactly when it happened but at some point, Silicon Valley became obsessed with the word billion. Myth #1: Build a Billion Dollar Company. I was wrong.

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Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

I’ve been writing up reviews of this season’s Shark Tank pitches from a silicon valley VCs perspective. Week three’s breakdown covered topics like how hard momentum is to turn around, and how participating preferred stock works. This time I’ll break down week four of this season. BACK 9 DIPS.

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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

Notes: In an IPO preferred share classes are converted into common stock, and liquidation preferences and accumulated but unpaid dividends essentially go away. One can infer valuations based on per share prices of preferred stock and oustanding common shares (~5.3M as of 12/31/09). Author howerl. Read More ».

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Should You Offer Equity Compensation to Employees?

Up and Running

Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. If you’re in Silicon Valley and/or building any kind of tech startup, it’s considered the norm to offer equity as part of a compensation package.”.

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New Survey from Fenwick & West Looks at Angel Funding Landscape

ReadWriteStart

The survey includes responses from 52 Internet, digital media, and software companies that raised money in the Silicon Valley and Seattle in 2010. The majority of financings was structured as preferred stock (69%), as opposed to convertible note financings (31%), and the vast majority of those (83%) had their conversion price capped.

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Equity for Consultants – Keep it Simple!

www.mattbartus.com

A View from the Valley. Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. First, you’d probably want them to receive common stock, not preferred stock (which is the likely next round). Blog blog archive. Quora Answers. About Matt.

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Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

Why Startups Offer Stock Options. In tech startups stock options were here almost from the beginning, first offered to the founders in 1957 at Fairchild Semiconductor , the first chip startup in Silicon Valley. It drove the relentless “do whatever it takes” culture of 20 th century Silicon Valley.