Up and Running

AUGUST 29, 2014

Many people who want to start a business believe they will be able to get grants or loans to help them finance the venture. Company culture is defined as the shared values, beliefs and practices of company employees including management. Look for common employee behaviors. How do employees act with customers and with each other?

Small Business 87

Small Business CPA Government North America 87

YoungUpstarts

JUNE 20, 2016

Taking stock of all of that helped spark the change needed to get things moving. The foundation of your financial success, it allows you to forecast the income of purchased assets such as employees, benefits, or company stock options. Entrepreneurs are accountable to employees. But I ran into some roadblocks.

Balance Sheet 189

Balance Sheet Stock Options .Net Stock 189

Startup Company Lawyer

MARCH 12, 2009

C corps, LLCs, and S corps differ significantly in the areas of taxation, ownership, fundraising, governance and structure, and employee compensation. Any company that raises venture financing will need to be a C corp in order to issue preferred stock. Almost all technology startup companies that I work with are C corps.

LLC 61

LLC Stock Options Preferred Stock Stock 61

Steve Blank

JUNE 23, 2016

Here are four reasons: First, companies bought into the false premise that they exist to maximize shareholder value – which said “keep the stock price high.” As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

keen.io

FEBRUARY 5, 2013

For example: Don’t accept equity compensation (stock shares) without knowing the percentage of the company you’ll own. To begin answering this question, I started on a quest to understand startup financing. From there, I began googling things like “first employee startup equity” and “startup offer negotiation.” Me: “Cool.

Salary 50

Salary Equity Startup San Francisco 50

YoungUpstarts

SEPTEMBER 27, 2019

Prepare Financing Options. By ensuring you have plenty of access to lines of credit or equipment financing, you can ensure you don’t end up with a cash shortage that stops your business short. Analyze various positions at your company and lay off those employees that are not providing adequate benefit to merit their salary.

United States 124

United States .Net Small Business Finance 124

Up and Running

AUGUST 20, 2014

It’s a risk and it will make many aspects of running a business harder: getting loans; attracting investors; paying suppliers and employees, and growing the business. Buy another car for $20,000 and your net cash flow will be $10,000. Calculate cash flow from your financing activities. Timing is of the essence.

Forecast 135

Forecast .Net Dividend Finance 135

Berkonomics

FEBRUARY 27, 2020

When you seek professional investors, whether organized angels or venture capitalists, one of the early questions you are asked is “How have you financed the business so far?” Currently that standard requires a minimum of $200,000 in annual income or over one million in net assets, including the value of the investor’s principal residence.

Cap Table 62

Cap Table Private Placement SEC Accredited Investor 62

YoungUpstarts

APRIL 2, 2013

Economic success is never guaranteed, but when you’re equipped with a strong understanding of finances, there is a better chance for your business to succeed. Include all that is applicable, including net income, non-current assets and any stock issues dividend payouts and repayments of bonds. Borrow From Family or Friends.

Small Business 149

Small Business Limited Liability Company Balance Sheet Finance 149

Up and Running

JULY 20, 2015

Most basically, cash inflows are generated whenever customers buy your products or services; outflows occur when you pay employees, suppliers, taxes or interest, among other things. If your business plays in the stock market at all, you’ll also have to indicate when you buy or sell securities here as well. Financing activities.

Dividend 60

Dividend Balance Sheet .Net Merger 60

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 2 Stock Classes: Common and Preferred. 5 Stock vs Options. 6 Founders / Restricted Stock. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers.

Equity 56

Equity Employee Vesting Preferred Stock 56

www.mint.com

MARCH 9, 2010

Go there now » Sign up or log in to mint.com Updates Drop Your Debt to Win 2 comments How To The Top 5 Customer Complaint Letters — And What You Can Learn From Them 5 comments Investing In Graphics: What Is a Stock? What is your net outflow per month? Check out the personal finance topic by clicking here.

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

YoungUpstarts

MARCH 15, 2012

The game pits groups of students against each other by forming them into companies who all sell the same product to see who can maximize stock price, market share, and net profit. The game involves under-pressure decision-making in areas like advertising, marketing, research and development, and finance.

Tennessee 178

Tennessee Video Programming .Net 178

Agile VC

FEBRUARY 2, 2012

I’ll focus for now on the business itself, there’s plenty of other info on the web if you care to understand the equity ownership or financing history of Facebook and frankly this has been fairly well known for awhile. ==. 2011 Net Income: $1.00 Facebook, Inc. Filing Date : February 1, 2012. 2011 YoY Revenue Growth: 88%.

IPO 100

IPO South Korea Venezuela Revenue 100

Berkonomics

MARCH 8, 2012

When you seek professional investors, whether organized angels or venture capitalists, one of the early questions you are asked is “How have you financed the business so far?” Currently that standard requires a minimum of $200,000 in annual income or over one million in net assets, including the value of the investor’s principal residence.

Cap Table 74

Cap Table Private Placement SEC Accredited Investor 74

ithacaVC

FEBRUARY 23, 2011

The MCOP can serve a critical role as founders and other management team members are diluted down by rounds of financing or if their equity is not in the money. The ALP is the total amount of $ that preferred stock holders are owed on a sale of the company under their liquidation preferences. The MCOP is a surprisingly complex topic.

Liquidation Preference 55

Liquidation Preference Management Preferred Stock Dividend 55

Reid Hoffman

MARCH 19, 2019

But in today’s world, speed-to-scale entrepreneurship is what we need to improve society, transform industries, and create massive value for customers, employees, and investors. When the market conditions are right, you should blitzscale for the benefit of all stakeholders: customers, employees, investors, and society.

Cofounder 28

Cofounder Business Model IPO Non-Compete 28

K9 Ventures

MAY 14, 2011

They are generally high net worth (accredited) individuals who have done well in their career, either as entrepreneurs or as executives and early employees at some of the companies that have done well (in the Valley that usually means Paypal, Google, Facebook etc). Common Stock. Convertible Note or Preferred Stock.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

Austin Startup

FEBRUARY 1, 2018

Or, put another way, great product managers are often the “weird kids” in the MBA program who, while sitting in a finance class, wonder if they should have enrolled in a design school or coding bootcamp instead. (I customers, other employees, books, blogs, social media, news?—?and Good PMs are very good listeners?—?customers,

Management 85

Management Product Technical Review Software Review 85

VC Adventure

DECEMBER 4, 2009

Quoting from the piece: “According to the Census Bureau, nearly all net job creation in the U.S. This conclusion is backed up by the National Venture Capital Association which tracks the impact of private companies who receive institutional venture financing. since 1980 has been generated by firms operating less than five years.”

Accredited Investor 49

Accredited Investor Venture Capital Stock Options Government 49

YoungUpstarts

JULY 30, 2020

Your excitement can quickly turn to confusion especially if you don’t know the difference between gross wages and net pay. Some things your pay stub will include your name, the dates you were paid for, the exact amount of hours you worked, your gross wages, any deductions you pay into, what your employer contributes, and your net pay.

.Net 204

.Net Security Stock Government 204

blog.simeonov.com

FEBRUARY 22, 2010

This can be a convenient shortcut to separate someone’s status (founder) from their role (employee or contractor or advisor, etc.) The number of separate documents may vary but they fall into two categories: Those related to equity, typically a restricted stock purchase agreement (RSPA) and associated escrow and other agreements.

Founder 44

Founder Vesting Agile Startup 44

online.wsj.com

JULY 11, 2012

Virtual Stock Exchange. Loading… Personal Finance. Personal Finance. Stock Quotes. Facebook went public in May with two classes of stock that give founder and Chief Executive Mark Zuckerberg about 57% of the voting power even though he only owns about 28% of the shares. MarketWatch. SmartMoney. SmartMoney.

Silicon Valley 42

Silicon Valley Founder Software Review Technical Review 42

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. The same thing happened to many Internet stocks.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

YoungUpstarts

FEBRUARY 23, 2019

There are countless loan and financing providers out there, but not all of them are as efficient as we would like, with a dangerous number of them being potentially risky propositions in themselves. Both employees and the employers they work for experience a crunch and heightened stress levels whenever payday comes around. CreditSnap.

Startup 170

Startup Algorithm .Net Stock 170

abovethecrowd.com

FEBRUARY 24, 2015

Historically, different financial institutions specialized in different stages, because the assessment of risk and opportunity was considered unique at each stage — for example, a seed investor was unlikely to do late-stage financing, and vice versa. You should not pay a net revenue multiple for a gross revenue disclosure.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

David Teten

DECEMBER 3, 2019

Point Nine Capital uses 15Five for continuous employee feedback. Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Up and Running

DECEMBER 22, 2015

So, investors look for businesses that will grow fast and sell out to a bigger business, or register their stock for trading on one of the public stock markets, which is when the early investors cash out. Please, get a clue: Real businesses usually turn out net profits in single digits, and only rarely up as high as 20%.

Angel Investor 60

Angel Investor IRR Software Review Startup 60

Steve Blank

FEBRUARY 26, 2020

Btw, the definition of each startup financing stage has changed in the last decade. Series B is about proving your net revenue model (can you be profitable?). Number of employees? Step 2: The Seed round – you raise $1-$3M (in some cases even $2-5M). Step 3: The Series A – you raise $5-$10M. Step 5: Series, C, D….

Cofounder 433

Cofounder Seed Stage Valuation Metrics 433

Up and Running

JUNE 19, 2015

I have no idea what kind of offices, how many employees do you have, what are you doing, that is not my strength. They have resources as a person and so they use those resources in their business so they start to mix their personal finance and their business finance. My strength is understanding. That’s my dream.

Cloud 60

Cloud Small Business Silicon Valley Media 60

Berkonomics

MARCH 7, 2019

When you seek professional investors, whether organized angels or venture capitalists, one of the early questions you are asked is “How have you financed the business so far?” Currently that standard requires a minimum of $200,000 in annual income or over one million in net assets, including the value of the investor’s principal residence.

Cap Table 61

Cap Table SEC Private Placement Accredited Investor 61

Both Sides of the Table

AUGUST 17, 2009

I had multiple term sheets to do my Series A financing. This was pre Venture Hacks so not a lot of help on terms on the Net. I need some protection that you’re not fully or mostly vested where you could simply walk away with a large stake in the company, screwing not just me but the entire employee base of the company.

Founder Vesting 252

Founder Vesting Vesting Founder Term Sheet 252

A Smart Bear: Startups and Marketing for Geeks

JUNE 27, 2011

Or what if we have another stock market collapse or if they shoot down a plane over California? HIM: Yeah, in fact one of my best employees doesn’t like [big company] and has threatened to leave if we do it, which would make it hard to continue this growth. “Net net,&# some people say. Do you prefer Deal B?

Sales 235

Sales Term Sheet Stock Deal Structure 235

Altgate

MAY 24, 2012

As a whole, Zuckerberg, his co-founders, and his former and present employees, own about 55% of Facebook. Dilution is the progressive shrinking of each executive’s equity percentage as the startup raises each round of financing.) How did they do this? Fear vs. Greed. As shown in Figure 9.5

Pre-Money Valuation 43

Pre-Money Valuation Cofounder Dilution Valuation 43

maplebutter.com

JANUARY 8, 2013

Do that – nothing else but one product / company / focus and get to $1M in sales with atleast $15% net profit. Friends & Family – High net-worth individuals with a passion for you and your industry. If you believe in it – then finance whatever you can yourself. Once you’ve done that – then. do something else. What do I do?

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Startup Lessons Learned

MAY 4, 2021

Every company I meet these days is grappling with this topic, from ESG to employee activism, to so much more. And of course, we started putting together a plan about how we might evacuate or get out of the office for day-to-day work and how we might start to provide services to employees. Highlights from the Show: What is Coinbase? (:33)

IPO 113

IPO Cofounder Technical Review Government 113

abovethecrowd.com

JUNE 2, 2021

Would that help retention and NPS (Net Promote Score)? This “gain” ($34B last year alone) is a result of a direct wealth-transfer to these individuals FROM the previous owners of the company — founders, executives, employees, and venture investors. Do you think those customers would find that interesting and compelling?

IPO 82

IPO Customer Matching Silicon Valley 82