Both Sides of the Table

SEPTEMBER 10, 2021

On the other hand, the biggest winners will turn out to be much larger than the prices people paid for them and this will happen faster than at any time in human history. Seed has become an option factory for many. And the truth is that several entrepreneurs prefer it this way.

Venture Capital 471

Venture Capital Writing Invest Pricing 471

Berkonomics

JUNE 8, 2017

The subject of raising money is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. You will realize much more from the ultimate sale of your business even if at a considerably lower price than if splitting the proceeds with investors.

Venture Capital 266

Venture Capital Class Invest Equity 266

Startup Professionals Musings

SEPTEMBER 22, 2012

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Plus you have to remember that these 200,000 shares could still be worth nothing in four years, depending on the “strike price” today, compared to the market price four years from now. 7% Product Manager,2 -.3%

Startup 92

Startup Equity Pricing Marketing 92

Startup Professionals Musings

SEPTEMBER 13, 2022

My first advice for new entrepreneurs is to pick a domain, such as online web sites and smart phone apps, that doesn’t have the sky-high up-front development costs. Nevertheless, it’s an option that doesn’t cost you equity. Now the price is closer to $100, if you are willing to do the work yourself. Marty Zwilling.

Startup 136

Startup Technical Review Equity Incubator 136

Startup Professionals Musings

JULY 14, 2014

My first advice for new entrepreneurs is to pick a domain that doesn’t have the sky-high up-front development costs, like online web sites and smart phone apps. The hottest new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity (coming soon).

Entrepreneur 113

Entrepreneur Funding Startup Technical Review 113

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

Startup Professionals Musings

JULY 8, 2015

My first advice for new entrepreneurs is to pick a domain, such as online web sites and smart phone apps, that doesn’t have the sky-high up-front development costs. Nevertheless, it’s an option that doesn’t cost you equity. Now the price is closer to $100, if you are willing to do the work yourself. Marty Zwilling.

Entrepreneur 105

Entrepreneur Startup Technical Review Equity 105

Startup Professionals Musings

APRIL 4, 2022

My first advice for new entrepreneurs is to pick a domain that doesn’t have the sky-high up-front development costs, like online web sites and smart phone apps. The most effective new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity. Use crowd funding.

Tips 104

Tips Startup Technical Review Equity 104

Both Sides of the Table

JUNE 5, 2015

” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. How much is in the option pool? If you have 8 senior managers in place and I don’t think you’ll need as many people I might accept an option pool of 8% unallocated.

Venture Capital 150

Venture Capital Pricing Startup Invest 150

Startup Professionals Musings

SEPTEMBER 26, 2015

Most entrepreneurs looking for an investor can tell you how much money they need, but few have given much thought to what they are willing to give up for it. Investors, on the other hand, look at the money figure, and even the equity, as the easy part. This is a loan with an option to convert to equity at a later date.

Demand 105

Demand Startup Equity Invest 105

Startup Professionals Musings

JULY 24, 2011

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Plus you have to remember that these 200,000 shares could still be worth nothing in four years, depending on the “strike price” today, compared to the market price four years from now. 7% Product Manager,2 -.3%

Equity 93

Equity Startup Pricing Marketing 93

Startup Professionals Musings

NOVEMBER 4, 2022

Yet every entrepreneur I meet wants to talk about the idea, and rarely mentions the team. Thus I was happily surprised when I found the classic book, “ The Tech Entrepreneur’s Survival Guide ,” by Bernd Schoner, PhD, and cofounder of ThingMagic, which leans heavily on the people side of the equation. The industry veteran.

Technical Advisors 123

Technical Advisors Startup Outsource Development High Tech 123

Startup Professionals Musings

DECEMBER 6, 2019

My first advice for new entrepreneurs is to pick a domain, such as online web sites and smart phone apps, that doesn’t have the sky-high up-front development costs. Nevertheless, it’s an option that doesn’t cost you equity. Now the price is closer to $100, if you are willing to do the work yourself. Marty Zwilling.

Startup 128

Startup Technical Review Equity Incubator 128

InfoChachkie

JANUARY 16, 2018

Greathouse: Your collective experiences have clearly made bootstrapping a viable option for you, more so than might be the case for a typical, younger entrepreneur who needs more direction, doesn’t have cash discipline, etc. It was a viable option for us. What advice you can offer entrepreneurs validating their new products?

Venture Capital 115

Venture Capital Entrepreneur Santa Barbara SaaS 115

Berkonomics

AUGUST 27, 2015

He has written numerous books and articles for entrepreneurs and investors, and was the publisher and editor-in-chief of Venture Magazine. Mr. Lipped addresses the issue of exits, and whether entrepreneurs should take the long view or cash out quickly when the opportunity arises. By Arthur Lipper.

Entrepreneur 120

Entrepreneur Equity Competition Pricing 120

Startup Professionals Musings

SEPTEMBER 30, 2012

Many entrepreneurs still dream of “going public,” making billions of dollars, and playing with the big boys. They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control.

Entrepreneur 95

Entrepreneur Startup Report Summary 95

InfoChachkie

JULY 11, 2011

As Fred points out, many entrepreneurs hear the word “debt” and promptly run the other direction. By combining our equity investment with a tranche of venture debt, the company has avoided a larger equity round, which would have significantly diluted the Founders’ ownership share. Go ahead, I will wait…. welcome back.

Equity 235

Equity Startup Invest Funding 235

Startup Professionals Musings

JUNE 30, 2019

My first advice for new entrepreneurs is to pick a domain that doesn’t have the sky-high up-front development costs, like online web sites and smart phone apps. The hottest new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity. Use crowd funding.

Startup 87

Startup Technical Review Equity Incubator 87

Berkonomics

SEPTEMBER 10, 2015

Most entrepreneurs wait too long to start thinking about their exit. I recently met with two bright entrepreneurs who are building a company in an exciting niche market riding on a long term trend. In contrast, this local company had been built on something around $1 million in equity. By Basil Peters.

Newsletter 120

Newsletter Startup Entrepreneur Blogging 120

Both Sides of the Table

MARCH 21, 2010

As startup entrepreneurs we all want to work with them because having their name as reference clients makes it so much easier for marketing, PR, selling to other customers, fund raising and even recruiting. I’ve already made clear that I think raising equity from “strategic money&# is an oxymoron. Should You Offer Them?

Startup 298

Startup Sales Slides Metrics 298

Both Sides of the Table

MAY 23, 2010

a loan) that is later converted to equity at the time of the next financing. If no financing happened then this “note&# may not be converted and thus would be senior to the equity of the company in the case of a bankruptcy or asset sale. Maybe the market views this as not worth the price you paid?

Startup 290

Startup Funding Venture Capital Pricing 290

Startup Professionals Musings

FEBRUARY 9, 2020

Yet every entrepreneur I meet wants to talk about the idea, and rarely mentions the team. Thus I was happily surprised when I found the classic book, “ The Tech Entrepreneur’s Survival Guide ,” by Bernd Schoner, PhD, and cofounder of ThingMagic, which leans heavily on the people side of the equation. The industry veteran.

Technical Advisors 123

Technical Advisors Outsource Development Startup High Tech 123

Both Sides of the Table

APRIL 14, 2010

It’s meant to be a bit provocative but the reality is that I give this advice to entrepreneurs all the the time and I usually leave the “e&# off of the end. I normally offer this advice in the capacity of really wanting to help entrepreneurs so please bear with me. There are other problems with “legacy&# deals.

Venture Capital 289

Venture Capital Capital Startup Pricing 289

Startup Professionals Musings

JULY 5, 2011

Many entrepreneurs still dream of “going public,” making billions of dollars, and playing with the big boys. They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control.

Startup 94

Startup Entrepreneur Report Summary 94

Startup Professionals Musings

OCTOBER 21, 2017

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Plus you have to remember that these 200,000 shares could still be worth nothing in four years, depending on the “strike price” today, compared to the market price four years from now. 7% Product Manager,2 -.3%

Startup 56

Startup Equity Pricing Marketing 56

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

Both Sides of the Table

JUNE 22, 2011

This was an audience of mostly first-time entrepreneurs. It is great for entrepreneurs and great for VCs. So here is what I have been telling entrepreneurs privately for the past 6 months. But that doesn’t mean that people are paying rational prices as investors based on intrinsic value. I believe that.

Pricing 309

Pricing Marketing Startup Venture Capital 309

Both Sides of the Table

JANUARY 21, 2010

I recently read a post over on VentureHacks titled, “ Top Ten Reasons Entrepreneurs Hate Lawyers &# written by Scott Walker (who blogs on legal issues for entrepreneurs ). You never got around to agreeing exact equity splits but you had many conversations about it. Much of this is unfounded – some is not.

Startup 318

Startup IP Southern California Entrepreneur 318

Startup Professionals Musings

OCTOBER 5, 2015

Even if you work every day in the world of new-venture funding, as I do, the options are confusing, and their meanings seem to change on a regular basis. I challenge any entrepreneur, for example, to define the difference between "seed-stage" and "early-stage" financing. Yet, knowing this distinction is important.

Funding 104

Funding Venture Capital Startup Seed Funding 104

Startup Professionals Musings

SEPTEMBER 5, 2011

The intent of this question is to determine the level of commitment of founders, both cash and “sweat equity,” and how much others have already invested into this plan. As an employee, you salary will likely be low, your job security low, so the job title better be large, and the stock options better be large.

Entrepreneur 95

Entrepreneur Startup Invest Patents 95

Startup Professionals Musings

JANUARY 27, 2012

Entrepreneurs sometimes assume an initial agreement with an Angel is a commitment, so they start spending before any money is received. It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Define equity type.

Pricing 89

Pricing Startup Entrepreneur Angel 89

Startup Professionals Musings

JULY 1, 2017

My first advice for new entrepreneurs is to pick a domain that doesn’t have the sky-high up-front development costs, like online web sites and smart phone apps. The hottest new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity. Use crowd funding.

Develop 70

Develop Development Product Startup 70

Startup Professionals Musings

FEBRUARY 19, 2013

My first advice for new entrepreneurs is to pick a domain that doesn’t have the sky-high up-front development costs, like online web sites and smart phone apps. The hottest new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity (coming soon).

Startup 123

Startup Technical Review Equity Incubator 123

Both Sides of the Table

AUGUST 3, 2010

There is a telltale sign of an inexperienced startup entrepreneur. I can save tons of development time and I think I can buy it for all equity. I’m doing due diligence on a company of another entrepreneur in LA whose company was apparently doing very well. Want to cut prices and go for market share? Your choice.

Technical Review 276

Technical Review Startup Press Pricing 276

Startup Professionals Musings

SEPTEMBER 14, 2010

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Define equity type.

Invest 91

Invest Angel Startup Pricing 91

Startup Professionals Musings

JANUARY 12, 2018

My first advice for new entrepreneurs is to pick a domain, such as online web sites and smart phone apps, that doesn’t have the sky-high up-front development costs. Nevertheless, it’s an option that doesn’t cost you equity. Now the price is closer to $100, if you are willing to do the work yourself. Marty Zwilling.

Startup 53

Startup Technical Review Equity Incubator 53

Both Sides of the Table

MARCH 11, 2010

It also takes options off the table if you eventually find out that this isn’t a VC backable business. I’ve seen too many entrepreneurs try to do things on the cheap. Let’s assume that the $2 million buys 25% of your company, which is the norm in an equity financing. But the lower end also has risks.

Startup 319

Startup Venture Capital Capital Competition 319