Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). Strategic investors validate a business, by their presence creating the very value they pay for with increased price per share purchased.

Venture Capital 266

Venture Capital Class Invest Equity 266

Berkonomics

OCTOBER 1, 2015

Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation.

Angel 120

Angel Sales Pricing Equity 120

Berkonomics

NOVEMBER 7, 2013

Since Bill Hewlett joined with Dave Packard in 1939 to create what is today one of the world’s largest computer companies, there has been an evergreen debate as to who is more important in starting a tech company: the techie or the business guy? founder and CEO of Gust, the angel financing platform used by over 50,000.

Startup 189

Startup Sales Ideas Entrepreneur 189

Berkonomics

JULY 19, 2011

Here’s a phrase I created in the early 1980’s to describe what I clearly saw as the last chance to make high margins on the sale of computer hardware to businesses. New magazines were rushed to market, thick with advertisements for computer systems and components at bargain prices. Email readers, continue here.]

Pricing 184

Pricing Networking IBM IBM 184

Berkonomics

JANUARY 27, 2010

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. So be aware that professional investors are in your company for the eventual large profits at the liquidity event.

Venture Capital 168

Venture Capital Sales Invest Class 168

Berkonomics

SEPTEMBER 13, 2018

A financial buyer will analyze your numbers, past and forecast, to the n’th degree, and calculate the price based upon the result, after carefully comparing your numbers with those of others in the same and similar industries. There is a third class of buyer I discovered first hand when selling my company – the emotional buyer.

Pricing 600

Pricing Sales IBM IBM 600

Berkonomics

NOVEMBER 23, 2023

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. … Pricing your options: The price per share for option grants is also an important consideration.

Equity 156

Equity Class Pricing Sales 156

Berkonomics

JANUARY 20, 2010

Some businesses require very little capital and the founder is able to self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). For you who fit that description, nice work. There is a lot to say about retaining control.

Venture Capital 174

Venture Capital Invest Class Entrepreneur 174

Both Sides of the Table

JANUARY 14, 2014

All the data actually suggests with the growth of mobile, inbound sales calls will double from 30 billion to 60 billion in 3 years (source: Kelsey). It’s why the first company I ever invested in as a VC – Invoca – just announced a $20 million funding by Accel Partners. Much more data in the full post. Home alarms.

Email 339

Email SaaS Venture Capital Google 339

Berkonomics

SEPTEMBER 28, 2017

Here is the warning: The execution of partnership 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. How about the price per share? There are some rules.

Equity 256

Equity Class Pricing Sales 256

Both Sides of the Table

OCTOBER 22, 2009

Only Hire A+ People Who Punch Above Their Weight Class. I believe that you should always hire people are are looking to “punch above their weight class,&# which means to hire people who want to be one league above where they are today. Weight Class : Let’s take sales. I’m not one of those.

Startup 327

Startup Sales Class CIO 327

Berkonomics

SEPTEMBER 2, 2011

A financial buyer will analyze your numbers, past and forecast, to the n’th degree, and calculate the price based upon the result, after carefully comparing your numbers with those of others in the same and similar industries. This rare buyer needs your company. He must have you or one of your competitors, and now.

Sales 220

Sales Pricing IBM IBM 220

Berkonomics

MAY 12, 2010

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if no interest, to outside investors. Email readers continue here.] a share, then options must be priced at that amount.

Equity 213

Equity Class Pricing Startup 213

Both Sides of the Table

MAY 7, 2011

Blogs weren’t popularized yet so it was an oddity for me to read the founder of a software company spewing out advice. I asked him if he’d be willing to allow me to interview him for This Week in VC and we filmed it in the offices of Stack Overflow – his new company. But I loved reading them and so did my team.

Software Review 285

Software Review Software Blogging Startup 285