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The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

This time by the efforts of Adeo Ressi to introduce a new kind of structure called “ convertible equity.” My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly.

Startup 354
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Should Investors in the Same Round of Financing Ever Get Different Prices?

Both Sides of the Table

The trouble is, nobody has an incentive to agree to write the first check. There is simply no reason for the first angel to write you a check until you have the whole round secure, which is why people herd cats. You can do it with equity & a price. Especially if it was memorialized in the documents why you were doing it.

Pricing 294
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Top 120 Startup Posts for 2010

SoCal CTO

500 Hats , January 10, 2010 Developing new startup ideas - Chris Dixon , March 14, 2010 Batch Processing Millions and Millions of Images - Code as Craft , July 9, 2010 jQuery Plugin: Give Your Characters a NobleCount - The Product Guy , March 23, 2010 How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup 378
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5 Ways Crowdfunding Is Not A Panacea For New Ventures

Startup Professionals Musings

Stegmaier recommends that you start by writing a regular blog, joining a few related campaigns, building a high-quality video, and completing up to a hundred additional lessons before you even launch your own project. Startups need to build a large passionate group of fans before the campaign.

Startup 151
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How to Work with Lawyers at a Startup

Both Sides of the Table

When to get a lawyer - If you plan to be a venture or angel backed technology company (what I mostly write about) the best time to start meeting and getting to know lawyers is long before you ever start your company. I write about some of the lessons in my post on Startup Mistakes. Many people start companies arse backwards.

Startup 318
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How to make a business partnership a success

Berkonomics

Example: salary, equity, joint venture, etc… Can the business afford it? It is highly recommended that legal document are created and/or reviewed by a business transaction attorney. All agreements should be in writing and signed by all parties involved. Compensation: What are compensation expectations?

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What Makes a Great Independent Board Member?

Both Sides of the Table

When an entrepreneur takes on investors who take equity (i.e. The board is where large equity investors get their representation. I’ve been on boards with independent directors who are hugely responsive, read important legal documents, get briefed by the CEO and company counsel and know the company’s financials.

Startup 187