Business Model Finance Preferred Stock 
Steve Blank
OCTOBER 24, 2017
— all great things when you are executing and scaling a known business model. Because the new CEO had built a team capable of and comfortable with executing an existing business model, the company would fail or get acquired. A 20th century VC was likely to have an MBA or finance background. Board Control.
Startup Professionals Musings
NOVEMBER 30, 2015
A C-corporation is more complex and expensive, and is recommended only if you expect to pitch to professional investors who demand preferred stock, or to more than 100 potential shareholders. Don’t put your family assets at risk by assuming that a sole proprietorship or partnership will cover your business needs.
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ReadWriteStart
JUNE 1, 2020
In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. For these businesses, it is imperative to get funding from the start without which the company cannot be set up. Stages of Equity-based funding. ?
Lightspeed Venture Partners
OCTOBER 7, 2012
Week three’s breakdown covered topics like how hard momentum is to turn around, and how participating preferred stock works. The first company started as a BBQ catering business, and eventually focused in on their most popular product, a dip made of blended up chicken plus various sauces. BACK 9 DIPS.
Steve Blank
APRIL 26, 2022
They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. A cram down is different than a down round. They’re Back.
David Teten
AUGUST 19, 2019
Does the traditional VC financing model make sense for all companies? I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. 2018 also had the fewest number of angel-led financing rounds since before 2010. Absolutely not.
Tim Keane
JANUARY 12, 2010
For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing. You can vary both valuation and term-sheet assumptions (in the gray boxes) to assess the impact on the values of the business. This is why a bottom up approach is more credible.
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