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. Pre-money ($8m) + investment ($2m) = Post-money ($10m) and the investors now own 20% of your company $2m / $10m. How much am I willing to invest in your company?

Venture Capital 150

Venture Capital Pricing Startup Invest 150

Tech Zulu Event

AUGUST 18, 2015

Equity split. As part of the agreement, put a vesting plan in place for your equity. If you haven’t legally assigned the property rights to your company, you don’t own the IP even if your co-founder developed it while working on your business. Protect your IP : Patents are the gold standard. Relative cash contributions.

Technical Review 40

Technical Review Software Review Startup IP 40

Both Sides of the Table

JULY 10, 2010

If you don’t know Montgomery & Co it is one of the premier technology & media focused investment banks in the country (and as Michael corrected me they also have a strong Healthcare / Med tech practice). Should you use investment banks to raise venture capital? We discussed: 1. This is often in the 5-7% range.

Venture Capital 242

Venture Capital Mission Ventures Capital Help 242

Startup Professionals Musings

APRIL 30, 2012

Although their book is written for businesses of all sizes, I believe the principles apply especially to startups as follows: Increase return on equity invested. The first purpose of a strategy is to organize and reallocate your resources to increase return on the amount of money invested in your startup to-date. Scalability.

Startup 99

Startup Competition IP Patents 99

Both Sides of the Table

FEBRUARY 23, 2015

For some aspiring to be tech entrepreneurs, I often suggest a two-step process, as I argued in this post that “ The First Startup Founder You Need to Invest in Is You.” There is often money to be made in finding places with under-valued IP. At Upfront we invested in such a company. He still has the dream.

Technical Review 150

Technical Review Startup Venture Capital IP 150

Both Sides of the Table

JANUARY 21, 2010

You never got around to agreeing exact equity splits but you had many conversations about it. Shame about not getting it in legal writing that you owned the original IP. When we invest they are often the company counsel so we see them at board meetings. I write about some of the lessons in my post on Startup Mistakes.

Startup 318

Startup IP Southern California Entrepreneur 318

Both Sides of the Table

SEPTEMBER 28, 2014

otherwise I prefer to invest less and risk less). Your goal is to invest in engineering (to maintain your product lead), new offices / locations (to capture markets before others), marketing (to capture consumer attention before others do) … all of these activities consume cash often in advance of the revenue they generate.

Startup 383

Startup Company Companies .Net 383

Startup Professionals Musings

NOVEMBER 9, 2010

Although their book is written for businesses of all sizes, I believe the principles apply especially to startups as follows: To increase return on equity invested. The first purpose of a strategy is to organize and reallocate your resources to increase return on the amount of money invested in your startup to-date. Scalability.

Startup 92

Startup Competition IP Patents 92

Startup Professionals Musings

FEBRUARY 28, 2010

You will find that investors don’t often invest in a services business, since there are no assets for equity, and banks don’t lend money to someone with no credit and a mortgage problem. You may have less luck getting an equity investor interested, since the financial returns would likely be low.

Entrepreneur 75

Entrepreneur Education Equity IP 75

InfoChachkie

MAY 16, 2011

Thus, follow the guidelines outlined in IP – Worthless To A Startup and only spend significant time and effort protecting your intellectual property when it is clear what you are trying to protect. In addition to paying the consultant, you must invest time to educate them. 3) Attempt To License An Idea. 8 ) Grant Exclusivity.

Startup 242

Startup Outsource Development Outsource Sales 242

InfoChachkie

JUNE 25, 2009

Some startup attorneys will accept a portion of their initial fees in the form of equity. When you hit the inevitable bumps in the road, a lawyer who has an equity stake in your business is more likely to be flexible with respect to payment terms and more willing to give you quick, off-the-clock feedback and guidance.

Technical Advisors 124

Technical Advisors Technical Review IP Patents 124

socalTECH

FEBRUARY 9, 2009

We brought together Peter Cowen of Groundwork Equity , Mark Suster of GRP Partners , Rick Smith of Crosscut Ventures , and Richard Yen of Saban Ventures -- all of who will be on the judging panel for the Tech Coast Angel's Fast Pitch on February 24th, to give us a their hints and tips about pitching to venture capitalists.

Tech Coast Angels 100

Tech Coast Angels Ideas Entrepreneur Invest 100

Both Sides of the Table

MAY 5, 2011

It’s why my investment philosophy is called, “ the entrepreneur thesis.&#. The magic that is Silicon Valley is that every tech entrepreneur who has made a bit of money chooses to “recycle&# it by investing back into the startup community. They’re doing stuff – just not enough. Seattle has its patrons.

Venture Capital 317

Venture Capital Technical Review Startup Press 317

SoCal CTO

JANUARY 5, 2011

Grade A Entrepreneurs , September 5, 2010 Why Krispy Kreme failed in Australia - Start Up Blog , November 3, 2010 Mellow Johnny’s: Retail Stores as Community Hubs - IDDICTIVE.COM , July 14, 2010 Is crowdfunding an option for my business?

Startup 378

Startup Venture Capital Blogging CTO Coach 378