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How do you pay an early-stage board?

Berkonomics

Give one percent equity to each outside board member vesting over two to four years of service. Pay early-stage board members of companies that are not lifestyle businesses one percent of the fully diluted equity in the form of an option that vests over two to four years of service. How do you set the option price?

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Need money? Read this!

Berkonomics

Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally generated funds. 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. There is a lot to say about retaining control.

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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. The order of liquidation or payout. and there are those accumulated dividends.

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Does your business need money? Read this!

Berkonomics

Email readers, continue here…] Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally-generated funds. 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.

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Angels and VCs: 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.

Angel 120
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Be careful about equity and options!

Berkonomics

Here is the warning: The execution of equity allocations and of a good incentive program using equity is often mismanaged, damaging the corporate capitalization structure and even affecting the outcome of subsequent investment into the company. … Equity is divided between the founders and the business begun.

Equity 156
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Raising money for your business: What are the options?

Berkonomics

Email readers continue here.]. Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally-generated funds. 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.