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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. Same Value for Sweat Equity as Investment Dollars?

Equity 391
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Is Convertible Debt Preferable to Equity?

Both Sides of the Table

I have to say that I didn’t take the question to mean that convertible debt had won for the entire market, but either way it’s clear that convertible debt has become an increasing trend. prefer equity to convertible debt): If you’re an early stage investor (e.g. In down markets more deals are priced.

Equity 319
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Stock Market Drops. Then It Rallies. What Happens Next for Funding?

Both Sides of the Table

I spent my days meeting companies, figuring out what areas of the market interested me and trying to get a sense for how VCs thought about fair valuations. I started showing my partners more deals that I found interesting and doing loads of analysis on the future of markets I thought were ripe for disruption. The market had tanked.

Marketing 305
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Chatmeter Finds Private Equity Funding

socalTECH

San Diego-based Chatmeter , a provider of local search marketing and reputation management services for multi-location businesses, has raised a round of investment from private equity investor Providence Strategic Growth (PSG). Providence Strategic Growth is the growth equity fund of Providence Equity Partners.

Equity 133
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Startups and VCs Should Avoid “Pier” Funding

Both Sides of the Table

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? And it adds up.

Startup 290
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5 Equity Crowdfunding Reflections Before You Sign Up

Startup Professionals Musings

That’s not as high as the failure rate with professional investors, but it should convince entrepreneurs that crowdfunding is still no panacea for funding. Most of the experience so far has been cash versus the equity feature defined by the JOBS Act – Equity Crowdfunding (Title III) , introduced back in 2016 with 685 pages of rules.

Equity 164
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Power Digital Marketing Picks Up Funding Round

socalTECH

San Diego-based Power Digital Marketing , a digital marketing agency has raised a round of funding, from private equity investor Periscope Equity. Power Digital Marketing is led by CEO Grayson Lafrenz and co-founder Robert Rodrigues. Financial details of the investment were not announced. READ MORE>>.

Marketing 113