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. Promissory notes come before any equity, and most late equity investments come before early equity investments, even of the same class of security.

Angel 120

Angel Sales Pricing Equity 120

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. … Equity is divided between the founders and the business begun.

Equity 156

Equity Class Pricing Sales 156

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

Both Sides of the Table

MARCH 2, 2011

It’s apropos because there is so much noise these days with email, Twitter, Facebook, blogs, web shows, etc. I was thinking back to a few previous “insider baseball&# blog debates that raged for several weeks: AngelGate (aka Bin38 secret cabal), convertible debt vs. equity, bubble vs. not, and now the AngelList discussion.

Email 287

Email Blogging Venture Capital Writing 287

Berkonomics

OCTOBER 26, 2010

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. Email readers continue here.]

Venture Capital 166

Venture Capital Equity Sales Email 166

Berkonomics

AUGUST 21, 2013

Venture or angel-financed companies with plenty of working capital sometimes are immune to this need for some time into their growth, but at some point it will become clear that the cheapest form of finance is not equity in a growing enterprise.

Capital 153

Capital .Net Equity Pricing 153

Berkonomics

AUGUST 27, 2015

Email readers, continue here…] Now, when first meeting with an entrepreneur, I ask simply, “Is the business being formed as a Keeper or a Flipper?” The Flipper’s executives usually have significant equity holdings, either actually owned or reflected in stock options.

Entrepreneur 120

Entrepreneur Equity Competition Pricing 120

Both Sides of the Table

MAY 27, 2013

Email updates frequently. And as Rob points out – if you email members with short updates more frequently they are more up to speed when you do need them to weigh in. Key point – if your emails are as long as my blog posts you’re forked. Make your emails actionable. ” Or, “I sent u an email.

Tips 365

Tips Email Venture Capital CTO Coach 365

SoCal CTO

JANUARY 5, 2011

Both Sides of the Table , July 22, 2010 An updated Digital Trends presentation - Jeff Hilimire , June 2, 2010 I do what I hate - Jessica Mah , January 7, 2010 Startup Equity Allocation - charliecrystle.com , January 11, 2010 When good investment decisions end up backing more women CEOs: Conversation with Cameron Lester at Azure Capital.

Startup 378

Startup Venture Capital Blogging CTO Coach 378

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. How about the price per share? The price per share for option grants is also an important consideration. This post is longer than usual.

Equity 256

Equity Class Pricing Sales 256

Berkonomics

MAY 26, 2010

One of his lessons remains clearly on my mind and is a variant of the old “You name the price and I’ll name the terms” challenge that works so well in negotiation. . Cohen sets up an example where a senior position job candidate is stuck on a salary twice as high as the CEO is willing to pay, leading to a standoff between the two.

Guide 136

Guide Education Course Equity 136

Berkonomics

SEPTEMBER 10, 2015

Email readers, continue here…] Their niche was heating up quickly – unfortunately for them. In contrast, this local company had been built on something around $1 million in equity. By the time the buyers get to serious price negotiations, it’s also clear to them that the company’s best days are behind it.

Newsletter 120

Newsletter Startup Entrepreneur Blogging 120

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

MAY 13, 2018

The surest sign a fund-raising process has stalled is when you aren’t getting follow-up meetings or hearing from the VC or hearing from friends that they got a phone call or email asking about you. In any event this is a “screening meeting” or as I’ve called on my graphics an “introduction” to the firm. If a VC “ghosts you” (i.e.

Venture Capital 332

Venture Capital Funding Startup Sales 332

Both Sides of the Table

JANUARY 21, 2010

You never got around to agreeing exact equity splits but you had many conversations about it. Forget to get around to setting up that Employee Stock Option Plan and want to be able to give the early guys their options at a low strike price? I write about some of the lessons in my post on Startup Mistakes.

Startup 318

Startup IP Southern California Entrepreneur 318

Tech Zulu Event

SEPTEMBER 27, 2011

Mike has over 18 years of business development, marketing and management experience in businesses ranging from early stage start-ups to private equity and from mid-stage business to large turn-around operations. Event Details. What: Spotlight Series Event. Price: $15 (Early Bird). to 9:30 p.m. RSVP: AGENDA.

Tech Coast Angels 96

Tech Coast Angels Idealab Angel Startup 96

Berkonomics

MAY 12, 2010

Equity is divided between the founders and the business begun. Email readers continue here.] Each grant to new or existing employees must be approved by the board before issue. The price per share for option grants is also an important consideration. a share, then options must be priced at that amount.

Equity 213

Equity Class Pricing Startup 213

InfoChachkie

JUNE 27, 2011

The goals of a preview meeting are to: (i) alert the VC to the existence and nature of your venture, (ii) obtain some free consulting (it may be Free Advice Worth Half The Price , at least it is free), and most importantly, (iii) pique the VC’s curiosity so they will be receptive to your future updates.

Entrepreneur 270

Entrepreneur Startup Venture Capital Resource 270

Both Sides of the Table

JANUARY 1, 2016

You don’t have unlimited equity to dole out. She can anticipate reactions to price increases or product changes by customers and she can sustain competitive challenges because she knows the customer will stick by her. But we all know the type at is at every event. They respond to email. They show up in the office.

Startup 150

Startup Coach Course Invest 150

SoCal CTO

DECEMBER 1, 2010

Equity-Only CTO and Equity-Only Developers - 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. It may be that all the doomsayers are right. But I don’t think so.

Technical Review 175

Technical Review Startup Product Technology 175

Both Sides of the Table

MAY 5, 2011

He’s been steadily emailing me for the past 18 months with ideas for local entrepreneurs I “have to meet&# and has been egging me on to spend more time in Seattle. They can then direct staff, allocate budgets, talk to the press, connect you with politicians and attend events. Every region needs its local media & events.

Venture Capital 317

Venture Capital Technical Review Startup Press 317