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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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Clearlake Capital Launches New Domain Registration Company, Newfold Digital

socalTECH

Santa Monica-based private equity investor Clearlake Capital said this morning that it has created a new company, Newfold Digital, through the acquisition of Endurance International Group, plus strategic investment transactions with both Web.com and affiliates of Siris.

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StartEngine Plans New Equity Crowdfunding Campaign, For Itself

socalTECH

Los Angeles-based StartEngine , the equity crowdfunding site led by serial entrepreneur Howard Marks, told its supporters on Friday that it is planning to launch a new, equity crowdfunding effort: for itself. StartEngine did not say how much it is looking to raise in its own, equity crowdfunding. READ MORE>>.

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When should you go for equity financing?

Berkonomics

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. In most cases, these applicants for equity funding must be rooted in technology to apply to this limited discussion. Then there is venture capital. The post When should you go for equity financing?

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Mucker Capital Backs Fraud Prevention Provider Emailage

socalTECH

Santa Monica-based venture investor Mucker Capital is one of the investors in a developer of fraud prevention and identity verification software, which uses email address scoring. Arizona-based Emailage said on Wednesday that it had raised $10M in a growth equity investment. READ MORE>>.

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Should you include your sweat equity in a business plan?

Berkonomics

Email readers, continue here…] You could start by charging more for your executive salary, then paying out less in cash, accruing the rest into a payable amount due to you in the balance sheet or plan. Ultimately, the accrued difference will amount to a large enough liability that several things could happen, all of them negative.

Equity 156
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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. I just couldn’t reduce it to far fewer words… Dave. Let me try to advance a few rules of thumb to help guide you here.

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