article thumbnail

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. If there is only one class of stock, the same as the founders, and the appraisal of the single class of shares yields, say $2.00

Equity 256
article thumbnail

Equity is the currency of early stage businesses.

Berkonomics

Equity is divided between the founders and the business begun. It there is only one class of stock, the same as the founders, and the appraisal of the single class of shares yields, say $2.00 First, a brand new enterprise is often formed from the efforts of several “partners”, each with an expertise valued by the others.

Equity 213
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

Startup Boost Los Angeles Opens Apps For Fall Class

socalTECH

Startup Boost Los Angeles has opened up applications for its Fall 2019 class, according to the group. The programs--which does not charge fees or take equity from companies in its program--says it is seeking nine early stage startups to take part in its eight-week program, designed to help early stage startups.

article thumbnail

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.

Equity 156
article thumbnail

Create equity value with every step.

Berkonomics

Most businesses fall into the class of those that can be sold someday to a willing buyer. In such a case, there is little advice here unless you think outside of your day-to-day profession and create a valuable leave-behind encasing your knowledge and experience that can be replicated and scaled to a large business – even if by others.

Equity 209
article thumbnail

Private Equity Night

SoCal Tech Calendar

Thursday, January 13, 2011 -- Private Equity Night. It brings together best-of-class local and national equity sources, professional MandA service providers, lenders, corporate members and their guests to make connections, share intelligence, and advance their businesses. ACG Orange County. PE See [link] (more)

Equity 113
article thumbnail

Private Equity Industry Orange County Update

SoCal Tech Calendar

Tuesday, July 10, 2012 -- Private Equity Industry Orange County Update. that is, the opportunities associated with private equity financing. Further, many OC company founders get growth capital and liquidity exits not through MandA but through private equity. Necessity is the mother of invention. See [link] (more)