Berkonomics

MAY 23, 2024

Give one percent equity to each outside board member vesting over two to four years of service. Pay early-stage board members of companies that are not lifestyle businesses one percent of the fully diluted equity in the form of an option that vests over two to four years of service. How do you set the option price?

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Venture Capital Pricing Equity Invest 156

socalTECH

FEBRUARY 11, 2021

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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Berkonomics

OCTOBER 15, 2020

It extends the cash available for research and other necessary fixed costs and gives the fragile, young company more “runway” to get to breakeven. But that is a messy way to demonstrate that you are taking less than market wages from your company. The post Should you include your sweat equity in a business plan?

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Berkonomics

SEPTEMBER 28, 2017

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. What percentage of the total company shares should be reserved for what specific job titles? This post is longer than usual.

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Equity Class Pricing Sales 256

SoCal CTO

NOVEMBER 1, 2010

I had a recent email dialog with the founder of a company looking for a CTO for their startup. We had several emails back and forth where he provided basic details on the concept. Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). Was it a case of needing Homework?

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CTO Hire CTO Coach Equity Develop 241

Berkonomics

DECEMBER 14, 2023

The argument FOR… I discovered the power of ownership early in my management career, establishing an employee stock ownership plan (ESOP), once popular as incentive compensation as well as a tax write-off for corporations and even a way to slowly transfer ownership of a company from the founders to the employees. Show everyone financials?

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Berkonomics

APRIL 25, 2024

While the CEO and management offer the vision, strategies, and tactics as well as the proposed budget, it is the board that controls with its votes the execution of strategy, the expenditure of cash, the taking on of debt or new equity, the very direction of the company as well as its ultimate health. Then who is most important?

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Berkonomics

JANUARY 25, 2024

Especially if they have sold their companies and live comfortably upon the proceeds, these people are often the most willing to help and the most patient through the process. Some charge by the hour, making themself available much as an attorney, keeping track of hours spent on phone calls and emails with you. and “working for food.”

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Coach Organization Resource Equity 156

Berkonomics

NOVEMBER 21, 2019

Often, we joke together as managers of companies or of people that our goal is “world domination” or “to crush the competition.” How about companies formed to profit and give to charity? Companies living on the edge or losing money often cannot make those vital promises, affecting its reputation, security and equity value.

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Berkonomics

APRIL 3, 2014

We’ve spoken of financing a young company through friends and family, known as “inside angels.” There are three classes of equity investors for early stage businesses that we have not yet considered. Email readers, continue here.] With angel groups, you should plan of spending months in the process, from application through funding.

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socalTECH

SEPTEMBER 25, 2018

Irvine-based Cirrus Insight , a developer of software used to help sales people with managing their email inbox and calendar, has received what it says is a "significant" growth equity investment. The funding came from private equity investor Clovis Point Capital. Size of the funding was not announced. READ MORE>>.

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socalTECH

FEBRUARY 22, 2021

Los Angeles-based NXCR, a new, subscription car startup led by automotive startup veteran Scott Painter, has raised $30M in a seed funding, based on an internal employee email obtained by socaltech. According to the email from Painter, the funding is the company's first external equity financing.

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Berkonomics

MAY 8, 2014

I am chairman of a company that, as I write this, is twelve years old and has not yet taken a dollar of outside investment. The company has been funded entirely by grants from the National Institute of Health, amounting to millions of non-dilutive dollars in all. How refreshing!

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Company Companies Writing Education 166

Berkonomics

JANUARY 7, 2021

How many of them, particularly in technology, were able to start a company, supply all the funding, and share no management tasks or equity with others, and still grow the company to any significant size, worthy of a multi-million-dollar opportunity to cash out at exit? Dividing equity among those that fill the management gap.

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Startup Equity Statistics Entrepreneur 240

Berkonomics

FEBRUARY 3, 2022

It is perfectly OK for you to want to grow your company and plan to keep control for you and your offspring, with no intention to sell. The advantage of creating an evergreen company. I was able to negotiate a “put” of my shares back to the company at 5x my investment. What if you later decide to just keep control?

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Berkonomics

MARCH 8, 2018

Give one percent equity to each outside board member vesting over four years of service. Pay early stage board members of companies that are not lifestyle businesses one percent of the fully diluted equity in the form of an option that vests over four years of service.

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Venture Capital Equity Sales Invest 256

Berkonomics

AUGUST 3, 2023

Friends, family and fools: [Email readers, continue here…] This term, although pejorative, describes the typical mix of early investors in a small, young growing business. In return, the accelerator often invests $25,000 to $100,000 in the young enterprise and takes from five to ten percent of the equity in return.

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Venture Capital Startup Class Invest 295

TechCrunch LA

JULY 19, 2022

Josh Kaplan and Dee Murthy, both founder and co-CEO of the Los Angeles–based company, started Ghost in 2021 after previously working together at Four Five Group, a men’s apparel business. million in new funding for its predictive inventory recommendation platform, joining other similar companies, including Zippedi and Inventa.

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Product Funding Technical Review Equity 191

socalTECH

JANUARY 16, 2018

NetDocuments , the provider of secure cloud-based document, email, and collaboration management software for the legal industry, which is backed by Santa Monica-based private equity investor Clearlake Capital , says it has named a CFO. According to the companies, NetDocuments has named Pete Childs as its new Chief Financial Officer.

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Santa Monica Email Equity Software 113

Berkonomics

OCTOBER 19, 2017

I discovered the power of ownership early in my management career, establishing an employee stock ownership plan (ESOP), once popular as incentive compensation as well as a tax write-off for corporations and even a way to slowly transfer ownership of a company from the founders to the employees. Yes, sometimes the news is not good.

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Slides News Equity Writing 243

Berkonomics

MAY 12, 2010

Equity is divided between the founders and the business begun. Email readers continue here.] First, a brand new enterprise is often formed from the efforts of several “partners”, each with an expertise valued by the others. Let me try to advance a few rules of thumb to help guide you here.

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Equity Class Pricing Startup 213

Berkonomics

APRIL 13, 2023

Time management: [Email readers, continue here…] Companies have gone out of business from a lack of time management, especially when additional capital is not available when most needed. Or even just when available at any reasonable cost in equity or interest. Or when the news is particularly good.

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Coach News Equity Email 156

Berkonomics

FEBRUARY 23, 2023

When do you sell your company? Companies sometime run out of cash in the midst of their increasing success, and often find that sources of loans or investment are not freely flowing at the moment of need. So, the question: load up with more equity and dilution? Obviously, we all want to sell at the top. And there is the problem.

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Pricing Invest Equity Entrepreneur 156

Berkonomics

JUNE 17, 2011

Email readers continue here.] Investments into the company, whether from new money or reinvesting profits, should be directed first into areas that will increase the value of the enterprise at the end game. And I’d go further. You do this for yourself and your shareholders, and should be thinking of this regularly.

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Equity Class Email Competition 209

socalTECH

OCTOBER 17, 2018

Los Angeles-based Edlio , has received a growth capital investment this morning, for its K-12 education and "community engagement" software, and in particular, acquisitions of other companies. The funding came from private equity investment provider LLR Partners. Size of the investment was not announced. Canada, and Latin America.

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Berkonomics

JUNE 10, 2021

How about early-stage companies with unique problems? In an early-stage company, the key issue is most often finding the way to start the revenue flowing from services and sales. With enough revenues, the young company can more easily raise equity funds, borrow money, hire top talent, and gain valuable publicity.

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Examples Sales Demand Equity 156

socalTECH

AUGUST 27, 2018

According to GoGuardian, the new software assesses the content students are creating and interacting with online via web searches, social media, chat, forums, email and online collaboration tools. Pricing on the new software was not announced.

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Software Social Media Equity Tool 100

Berkonomics

FEBRUARY 9, 2023

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. If there are enough of these, the CEO or founder can announce a valuation as high as double the actual negotiated enterprise value of the company.

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Pricing Sales Examples Tool 156

Berkonomics

MAY 31, 2018

company, with 26 programmers in his fold. The company had grown to 233 employees and served 16% of all automated hotels worldwide at that time. Email readers, continue here…] One day Tom came to me and said, “I want to transfer to marketing. Five years later, I received an email from Tom. Good to hear from you.

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Email Coach Invest Equity 226

Berkonomics

AUGUST 6, 2020

When we start a business, we are optimistic that we will succeed and dream of riches to follow when the company is sold or even getting all the way to an IPO. Some of us build our businesses to be lifestyle creations, destined to provide for our families but not necessarily as creators of great equity upon an eventual sale.

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Resource Startup Sales Equity 156

Berkonomics

DECEMBER 7, 2017

Especially if they have sold their companies and live comfortably upon the proceeds, these people are often the most willing to help and the most patient through the process. Email readers, continue here…] How do you pay a coach? His average percentage of a company was 5% in return for spending a day a week as I recall.

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Coach Organization Resource IBM 243

Startup Professionals Musings

APRIL 23, 2013

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. All you need is a blog, Twitter, email, some business card stock, and a little creativity. Sometimes the tiniest details will throw your startup company into disaster.

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Equity Startup Summary Tips 96

Berkonomics

DECEMBER 20, 2018

Why are you so strongly sold on royalty licensing as the most effective way to finance a tech-based early stage company? Since I am a proponent of using equity as a tool and he is so much opposed, this week it is his turn to make the case. Do I understand the royalty replaces the need for equity investors ? Investment banker?

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IP Product Equity Tool 136

TechCrunch LA

JANUARY 26, 2020

The pair made a mix of early- and late-stage investments in Los Angeles-based companies like LegalZoom, Scopely, Art of Sport, The Honest Company, RingDNA, FocusMotion, DyshApp and Represent. billion investment vehicle that was launched in partnership with the private equity fund, Permira, according to a report in USA Today.

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Venture Capital Los Angeles Legalzoom Calabasas 359

Berkonomics

JANUARY 6, 2022

First, the marginal exit event: Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Promissory notes come before any equity, and most late equity investments come before early equity investments, even of the same class of security.

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Venture Capital Sales Pricing Equity 156

socalTECH

OCTOBER 18, 2017

Wpromote said the event, in El Segundo, runs from 8am to 5pm, and will help nonprofits learn about things like paid and earned social media, boosting a charity's visibility on Google, increasing open and click through rates on email campaigns, and more. READ MORE>>.

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Training El Segundo Marketing Social Media 124

socalTECH

MARCH 2, 2017

Santa Monica-based private equity investor Clearlake Capital Group announced this morning that it has acquired NetDocuments , a provider of cloud-based document management, email management, and collaboration software for law firms and corporate legal and compliance customers. Financial details of the acquisition were not announced.

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