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Be careful about equity and options!

Berkonomics

Here is the warning: The execution of equity allocations and of a good incentive program using equity is often mismanaged, damaging the corporate capitalization structure and even affecting the outcome of subsequent investment into the company. … Equity is divided between the founders and the business begun.

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Careful about equity and options in early stage businesses

Berkonomics

For those negotiating equity allocations it covers some of the most complex issues to address in the process. Equity is divided between the founders and the business begun. An option plan should carve out an addition of about 15% of the “fully diluted” shares. How about the price per share?

Equity 256
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You name the price; I’ll name the terms.

Berkonomics

The most striking example was the one hundred million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. Offering too little in an acquisition to satisfy the seller? Sometimes, the person on the other side must keep to a minimum price you cannot understand or afford.

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Equity for Early Employees in Early Stage Startups

SoCal CTO

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept. as his "retail" price. Let's run through an example.

Equity 391
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You name the price; I’ll name the terms.

Berkonomics

The most striking example was the one hundred–million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. Offering too little in an acquisition to satisfy the seller? And how about a product purchase where you cannot come to a successful negotiated price with your supplier?

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Canada’s newest unicorn: Clio raises $110M at a $1.6B valuation for legal tech

TechCrunch LA

Rowe Price Associates Inc. and OMERS Growth Equity. Newton was tight-lipped about the company’s financials, saying only that since its 2019 raise, the company has seen “explosive” growth. In 2018, Clio made its first acquisition with its buy of Lexicata, a Los Angeles-based legal tech startup. Image Credits: Clio.

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Master of Customer Acquisition, Matt Coffin, On Startups …

Both Sides of the Table

He is very hands-on and helpful – especially for any company looking into customer acquisition. o CPM model gave him control over the information in the acquisition cycle so he focused on that. - People want to invest in people they trust – once you’ve made money for someone you can always go back, and even get better pricing.