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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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7 Business Mistakes Serial Entrepreneurs Never Make (Twice)

InfoChachkie

As an entrepreneur, I helped create companies which achieved two IPOs and two trade sales totaling $385 million. Evaluate their sincerity by asking them to accept equity in exchange for all or a portion of their overall compensation. Your commitments to investors must be significant enough to compel them to write you a check.

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Top 120 Startup Posts for 2010

SoCal CTO

November 23, 2010 Entrepreneurs, Using Outsourcing to Obtain Capital Efficiency Needs to be Thought Through to be Effective - Robert Ochtel , June 7, 2010 Teen Entrepreneur, Brian Wong, Youngest Founder to Receive Angel Funding - teenentrepreneurblog.com , October 28, 2010 Build Your Own Silicon Valley?

Startup 378
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VCs, celebrities, and athletes are writing a new LA story to bring women’s soccer to the city

TechCrunch LA

The pay equity fights that the women’s team has led are still ongoing ( and suffered a setback earlier this year ), but Nortman and Portman saw an opportunity to chart a new course for the league with the combination of both of their support. Image Credits: Angel City. That non-profit is also a partner with Angel City. “In

Writing 171
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Early stage money: The problem with PPMs

Berkonomics

The sale of equity in private companies is regulated by the Securities Act of 1933, which requires that the company either register with the SEC or meet one of several exemptions (Regulation D). The entrepreneur may have already raised half or more of the cash required in this round and is eager to top off the round.

Writing 199
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Should Investors in the Same Round of Financing Ever Get Different Prices?

Both Sides of the Table

If you do a capped note it’s bad for the entrepreneur. 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.

Pricing 294
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Is @AngelList Syndicates Really Such a Big Deal?

Both Sides of the Table

It should help some entrepreneurs to better access early-stage capital and should allow some angel investors better access to deal flow. If you know, VCs end up writing sizable checks into their own funds, which is important in better aligning interests. million round I might write $1.8 – 2.2 So What’s the Big Deal?