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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. … An option plan should carve out an addition of about 15% of the “fully diluted” shares.

Equity 156
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How To Scale Your Startup Far Beyond Organic Growth

Startup Professionals Musings

This strategy is called “organic growth,” yet it alone may yield only a fraction of the potential you could achieve, unless you add the additional strategies of partnerships and M&A (mergers and acquisitions). Invest in selective strategic alliances. Use external sourcing to fill in the non-critical gaps. Partial acquisition.

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The most satisfying life journey is never about the money.

Berkonomics

And yet, as I recall the greatest thrills, the memorable events, the best of memories, almost none are about the money. The rewards of angel investing. If you are in such a good place in your life, find a local angel investing group by navigating to www.angelcapitalassociation.org and clicking on “Find Angels.”

Coach 120
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Several more real costs of taking outsider investments.

Berkonomics

Let’s talk about the reality of taking money from professional investors. The investor organization is granted the seat as long as the investment remains, and the documents often name the first representative assigned by the investor group to the position. But this time, we concentrate upon governance changes.

Invest 243
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Careful about equity and options in early stage businesses

Berkonomics

Here is the warning: The execution of partnership 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. How about the price per share?

Equity 256
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6 Keys To Measuring Return On Investment In Marketing

Startup Professionals Musings

Business success is all about meeting the needs of the modern buyer, who is more informed, has access to more choices, and is ever smarter about making purchasing decisions. While his insights have come from large organizations, I give many of the same recommendations to every startup: Channel engagement performance.

Marketing 174
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Think ahead when raising your early investments

Berkonomics

Sooner or later you may need to seek venture capital and accommodate the needs of the venture community in negotiating the terms of an investment. First, VC’s in general cannot invest in ‘S’ corporations or limited liability companies (LLC’s). And what VC’s worry about. What VC’s can and cannot do.

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