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How do you pay an early-stage board?

Berkonomics

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. You do not pay professional investors who are serving on behalf of an investment company or VC and paid by that company.

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Need money? Read this!

Berkonomics

Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally generated funds. But few businesses grow into the sweet spot of $20 million to $30 million in worth to an ultimate buyer without the injection of outside capital. There is a lot to say about retaining control.

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When should you go for equity financing?

Berkonomics

In most cases, these applicants for equity funding must be rooted in technology to apply to this limited discussion. Here is a class of investor we’ve covered before, one usually focused upon you and less upon your business case. Angel investment groups or funds. Your expectations regarding time to funding and more.

Equity 156
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Think ahead when raising your early investments

Berkonomics

Some businesses just can’t fit within the angel capital or friends and family model for raising funds. Sooner or later you may need to seek venture capital and accommodate the needs of the venture community in negotiating the terms of an investment. What VC’s can and cannot do. And what VC’s worry about.

Invest 120
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Does your business need money? Read this!

Berkonomics

Email readers, continue here…] Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally-generated funds. It might be useful to list some of the ways in which you can raise money for growth with and without outside investors.

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Venture Outlook 2016

Both Sides of the Table

There is a lot of uncertainty about the state of the private, high-growth technology markets and the venture capital markets that underpin them. Perhaps I would call it “Mourning in VC” as in mourning for the days of rational behavior. I spoke last week at the annual Cendana VC/LP conference. Are LPs to blame?

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Think ahead, if you will need more money later.

Berkonomics

Some businesses just can’t fit within the angel capital or friends and family model for raising funds. Sooner or later these businesses will have to seek venture capital and accommodate the needs of the venture community in negotiating the terms of an investment. Email readers, continue here.]