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You name the price; I’ll name the terms.

Berkonomics

Here’s a striking example. The most striking example was the one hundred million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. Don’t rule a too–high negotiated price out until you think carefully about the terms of purchase as a tool for leverage.

Pricing 156
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Financing with grants, not equity or debt

Berkonomics

First, an example of grant-based financing . If you can finance your enterprise through grants rather than equity or debt, you retain control and when it is time to sell your interest in the business, a lower sales price will create a higher return on your personal investment. Other sources of grants.

Equity 156
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Careful about equity and options in early stage businesses

Berkonomics

For those negotiating equity allocations it covers some of the most complex issues to address in the process. Here’s an example: First, a brand-new enterprise is often formed from the efforts of several “partners”, each with an expertise valued by the others. Equity is divided between the founders and the business begun.

Equity 256
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Equity for Early Employees in Early Stage Startups

SoCal CTO

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept. Let's run through an example. as his "retail" price.

Equity 391
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Is Convertible Debt Preferable to Equity?

Both Sides of the Table

I’ve written about the topic of convertible debt at length before specifically about how angels & entrepreneurs should think about pricing. Convertible debt is an investment that “converts&# into equity in the future usually at a discount to your next funding round price and sometimes has a “cap&# (maximum price).

Equity 319
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You name the price; I’ll name the terms.

Berkonomics

The most striking example was the one hundred–million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. And how about a product purchase where you cannot come to a successful negotiated price with your supplier? You name the price; I’ll name the terms.

Pricing 120
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VC investors: Don’t be greedy even if you can.

Berkonomics

Especially when outside investors, venture capitalists or angels have put in substantial money, and the sales price is not enough to give them a reasonable return for the time and money invested, these investors can be – in a word – greedy. Here’s an example that will make your heart skip a beat. The order of liquidation or payout.