Both Sides of the Table

FEBRUARY 6, 2019

This is cutting it as just 12 years after inception, which is even before Amazon and Google’s big stock-market runs in which these three companies have created $1.64 In fact, if just Google, Salesforce and Amazon has stayed private for 12 years (today’s IPO benchmark) an addition $200 billion would have been captured in the private markets!

Venture Capital 292

Venture Capital IPO Early Stage Mezzanine 292

Startup Professionals Musings

JANUARY 27, 2012

The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold. This clause attempts to protect the conversion price of stock of Angel investors, prior to additional financing, from being reduced to a price equal to the price per share paid in a later “down” round.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 223

Business Plan Blog

NOVEMBER 13, 2013

Raising Seed Capital. Most startup founders do not have enough capital to launch their companies and need to raise money at some point. Among the most common methods of funding used by startups when raising seed capital is “Convertible Debt Financing.” 3) Giving non-voting stock. About The Author.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

Gust

SEPTEMBER 29, 2011

For a traditional VC financing round structured as a sale of preferred stock, the best resources I can recommend are the Term Sheet Series by Brad Feld and Jason Mendelson and Startup Company Lawyer by Yokum Taku. (For more on working with startup lawyers, see Mark Suster’s classic post, How To Work With Lawyers At A Startup.).

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

Scalable Startup

AUGUST 9, 2018

Raising seed capital is a tricky business. Most are making major mistakes in their approach when seeking capital. I get approached often by tech startups looking for their first outside funding. They come in lots of different flavors and stages of fundability. They’re betting on you.

Technical Cofounder 20

Technical Cofounder Silicon Valley Early Stage Cofounder 20

Startup Professionals Musings

SEPTEMBER 14, 2010

The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold. This clause attempts to protect the conversion price of stock of angel investors, prior to additional financing, from being reduced to a price equal to the price per share paid in a later “down” round.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Steve Blank

APRIL 12, 2013

The first wave of startups began when R&D centers and universities began to provide the technology and seed capital for new startups that were spin-outs or spin-offs. The other big change was the creation of ChiNext, China’s equivalent of NASDAQ stock exchange for start-ups, in 2009.

Venture Capital 271

Venture Capital China Offshore SBIR 271

Gust

OCTOBER 17, 2011

The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold. This clause attempts to protect the conversion price of stock of angel investors, prior to additional financing, from being reduced to a price equal to the price per share paid in a later “down” round.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

Haystack

NOVEMBER 24, 2018

Typically in M&A, all-cash offers are more common when the acquirer dwarfs the target in terms of market cap; otherwise, M&A usually involves stock in the mix, which leads us to believe Cylance wouldn’t have accepted anything but cash — which makes sense given the company was reportedly booking $130M/year with 3,500 customers.

Acquisition 62

Acquisition Artificial Inteligence Balance Sheet Cofounder 62

Gust

SEPTEMBER 5, 2012

Like any promissory note, it bears interest (usually at a nominal rate) and has a maturity date on which the loan must be repaid if it hasn’t been converted to stock (typically around 18 months). This is true, although interest is generally paid in stock upon conversion. How can this possibly make sense?

Finance 134

Finance Convertible Security Equity Seed Stage 134

Steve Blank

APRIL 12, 2013

The first wave of startups began when R&D centers and universities began to provide the technology and seed capital for new startups that were spin-outs or spin-offs. The other big change was the creation of ChiNext, China’s equivalent of NASDAQ stock exchange for start-ups, in 2009.

Venture Capital 163

Venture Capital China Offshore SBIR 163

Both Sides of the Table

MAY 1, 2014

The first is that it could carry limited inventory in stock because it had limited physical shelf space. After 9 months it was time to raise seed capital and go test drive our new software and processes. Sam moved back to NY and we announced our seed round of capital, which we led.

Technical Review 380

Technical Review Software Review Cofounder CTO Hire 380

Startup Lessons Learned

AUGUST 26, 2009

They take common stock, not preferred, a fact that the entrepreneurs mentioned to me many times. Provide early seed capital, and be the ones to make those introductions. Every summer, they bring approximately 10 companies to Boulder for an intense "accelerator" experience (dont call it an incubator, or youll get dirty looks).

San Francisco 113

San Francisco Silicon Valley Startup Lean 113

Gust

OCTOBER 5, 2011

In most cases, an early stage startup will raise seed capital from more than one investor. per share for 2,000,000 shares of newly issued Series A Preferred Stock. With the 25% discount applied to the $1/share price paid by new investors, the Note will convert to $108,000 / $0.75 = 144,000 shares of Series A Preferred Stock.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

ReadWriteStart

APRIL 2, 2012

Crowdfunding is an efficient way for entrepreneurs to raise seed capital," the editors wrote. Stock image by Shutterstock. It's a move that's not without controversy, and not even the people who are happy with it are completely happy with it. But it is also a good way for hucksters to fleece suckers.". Discuss.

IPO 121

IPO Florida Startup Seed Capital 121

VC Cafe

APRIL 23, 2012

Venture capital can make an immediate impact on an online schooling company’s bottom line. A $125 million grant made in 2011 to K12 , a company developing educational software for online schooling and testing, led that week to the company’s highest stock price in an entire year.

Venture Capital 96

Venture Capital Michigan Seed Capital Programming 96

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. With seed funding, you hope to grow your business and, at the very least, gain proof of concept.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Scott Edward Walker

SEPTEMBER 21, 2011

If you’re an entrepreneur looking for seed capital, but don’t know any sophisticated angel investors, you need to hustle and build relationships in order to get “warm” introductions. Finally, unless the startup is raising at least approximately $750,000, it generally is not in the company’s interest to issue shares of preferred stock.

Preferred Stock 45

Preferred Stock Angel Investor Entrepreneur Common Stock 45

Austin Startup

APRIL 23, 2010

Stock prices change, people tweet about a company, new job openings are posted, people “fan&# or like Facebook pages, people update their LinkedIn profiles, and Jigsaw information gets updated, just to name a few examples. The company was founded with seed capital from Austin Ventures.

Intellectual Property 79

Intellectual Property Austin Early Stage Agile 79

Growthink Blog

NOVEMBER 29, 2010

For approximately a year’s worth of “work” which the movie fairly or unfairly portrays as mostly involving a lot of sex, drugs, and rock and roll, Parker now owns Facebook stock worth over $1 billion. billion.

Seed Capital 67

Seed Capital .Net Social Network Stock 67

maplebutter.com

JANUARY 8, 2013

for most seed investments, investors will put more stock in the person and the traction they get with the resources at hand. We are raising seed capital, but would like to have a US tech investor. How do you think investors might react to a solution to a problem that hasn’t been implemented, but easy to replicate?

Technical Review 44

Technical Review Startup Cofounder Software Review 44