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. Founders can now outvote the preferred stock holders (the investors).
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.
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.
Startup Professionals Musings
JANUARY 4, 2020
If your financial model projects a negative cash flow in this period of $400,000, you should buffer this amount by 25 percent, and ask for $500,000. Be prepared to explain your business model. Most professional investors will expect preferred stock, a board seat, rights to later rounds and perhaps anti-dilution protection.
Startup Professionals Musings
MARCH 14, 2020
Experienced entrepreneurs understand investor expectations of Board representation, preferred stock, and payments based on interim milestones. Undefined business model or very low gross margins. Ask only for the money you can justify. Naïve expectations on funding terms and process.
Startup Professionals Musings
OCTOBER 7, 2022
If your financial model projects a negative cash flow in this period of $400,000, you should buffer this amount by 25 percent, and ask for $500,000. Be prepared to explain your business model. Most professional investors will expect preferred stock, a board seat, rights to later rounds and perhaps anti-dilution protection.
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