David Teten

DECEMBER 3, 2019

In liquid markets, most of the calories expended on technology and analytics are focused on trade selection, or “ origination ”. To learn more about this space, I suggest join an online community I co-founded, PEVCTech. . I use another live Google doc to maintain my database of companies I’m marketing to other VCs. 2) Market .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Hunter Walker

AUGUST 23, 2023

Our participation in Anchor ( later acquired by Spotify ) generated both a return and a friendship between us and the founders. I can vouch for his genuine optimism Hunter Walk: You got to work with a number of different VCs on your cap table for Anchor. Who was the best one and why was it Homebrew? Was I right?

Founder 117

Founder Angel Investor Cap Table Distribution 117

Steve Blank

APRIL 8, 2010

He and his co-founder were both PhD’s in applied math who believe they can make some serious inroads on next generation search. Then they had a five-year P&L statement, balance sheet, cash flow and cap table. asked the founder who had spent the time crafting the perfect plan. “On It’s dynamic. “So

Business Model 332

Business Model Business Plan Customer Cap Table 332

techcrunch.com

APRIL 26, 2013

That way, startups only have one entity in the cap table, which simplifies documentation and structure. Co-founder Naval Ravikant explains that 18 pilot companies in the program, including Transcriptic, Double Robotics and Tred, received $6.7 Investors included Founders Fund, 500 Startups and Marc Cuban.

SEC 61

SEC Accredited Investor San Diego New York City 61

David Teten

AUGUST 19, 2019

RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Decathlon Capital.

Revenue 60

Revenue Technical Review Software Review Equity 60

Version One Ventures

DECEMBER 3, 2019

We loved the founders, but didn’t have much conviction around the scalability of a browser plug-in and the fact that this was a bridge round. We thought the market was very noisy and had seen many spin-outs fail (the transition from service to product company is not always easy). And yeah, $12M felt kind of high :-). Sonder (prev.

Portfolio 201

Portfolio Cap Table Early Stage Valuation 201

Pascal's View

JULY 9, 2017

Andrew Krowne and I recently co-wrote an article in Tech Crunch , Why SAFE Notes Are Not Safe for Entrepreneurs. While VC deals remain marketed on a pre-money basis, sophisticated investors know that what matters most is the post-money (how much of the company will I own after all of the new shares have been issued).

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

View from Seed

MAY 29, 2019

These funds would regularly share deal flow with one another and could share the work in supporting founders and helping to push the company forward. Today, we are seeing less syndication of seed rounds and sharper elbows among many of the funds in the market. Similarly, the seed market is beginning to look like this too.

Syndicate 267

Syndicate Syndication Cofounder Cap Table 267

David Teten

SEPTEMBER 23, 2017

The extreme example of this are algorithmic investors in the public markets, who design algorithms which trade on the designer’s behalf, as opposed to making trading decisions directly. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . 1) Market fund.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Hunter Walker

OCTOBER 31, 2021

Fund people/ideas ahead of consensus — that is, find founders and markets that aren’t currently being chased by the mainstream and get to conviction ahead of the pack. If you can be more valuable than that, I’d love to bring you on to the cap table of the next seed round we lead. Close the fun and get to work.

Cap Table 154

Cap Table Cofounder Early Stage Portfolio 154

David Teten

DECEMBER 12, 2017

In his white paper How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood , PEVCTECH.com founder David Teten explored how private equity and venture capital investors are trying to automate more of their job. I’d expect a similar shift in venture over the next decade or two.”. Some 33% do not use any newsletters.

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

Startup Lessons Learned

JULY 11, 2019

She’s also a founding member of All Raise, a non-profit committed to improving diversity in both funders and founders. What I was interested in seeing was that a lot of these founders believe that they’re not just creating technology, they're creating change and culture. Let’s move to Floodgate now.

Founder 68

Founder Lean Venture Capital Cofounder 68

Both Sides of the Table

FEBRUARY 22, 2011

I understand the appeal of having many VC firms on your cap table. You may feel as I did in 1999 that the more smart people around the table the more intros you’ll have, the more sage advice you’ll receive and the more impressive you’ll seem to outsiders. The Perils of Many. But it happens. The Pitfall of One.

Dilution 314

Dilution Cap Table Due Diligence Option Pool 314

The Next Web

OCTOBER 21, 2013

Neil Rimer is a Partner and co-founder of Index Ventures. Yet, surprisingly, we continue to come across founders who have made significant mistakes in their early capital raises that we suspect go against their own instincts and jeopardize the foundations of the businesses they are building.

Cap Table 128

Cap Table Option Pool Angel Investor Entrepreneur 128

View from Seed

OCTOBER 11, 2022

At the seed stage and as companies scale, helping the founders I work with identify and reach their goals, personally and professionally, gives me energy and purpose. Together, we’ve co-invested and competed, commiserated and celebrated.

North America 156

North America San Francisco Cap Table Cofounder 156

NZ Entrepreneur

JULY 12, 2018

We often see single founders slogging it out on their own. Founders can be reluctant to give up equity and control of their idea to bring in a co-founder alongside them to share in the decision making, as well as the highs and lows. Do you really need a co-founder? In fact, the average start-up had 1.72

Cofounder 60

Cofounder Founder Vesting Cap Table 60

Hunter Walker

NOVEMBER 21, 2018

One was the result of a cofounder breakup. Only Jason’s was in the “hard pivot” category that Fred describes (“Changing the product, market, and business entirely. At the same time, investors should give the founders some space to figure out if they want to push on or not. As Jason wrote : .

Founder 115

Founder Cap Table Seed Stage Cofounder 115

Hunter Walker

AUGUST 8, 2023

Obvious caveats to my POV here, most specifically: exposure is limited to largely the US/SiliconValley ecosystem, driven by our own portfolio, my friends and co-investors, the funds I’m a LP in, and our institutional LP relationships. Soft Acquisition Market. Whatever gets reported is just the tip of the iceberg.

Portfolio 118

Portfolio Cap Table LP Valuation 118

NZ Entrepreneur

JUNE 21, 2022

Welcome to ‘500 Founders’ where we ask startup founders and innovators from around New Zealand, What is one piece of advice you would give to people working on their first startup and why? Thomas Clyma – Cofounder. Tina Chou – Founder. ” Dean Brown – Founder. TheTestMart.

Founder 105

Founder Cap Table Cofounder New Zealand 105

Hunter Walker

FEBRUARY 20, 2024

What Happens When TikTok Is Your Marketing Department [David Segal/New York Times] – Was it organic? Founder Vesting [Jared Hecht/USV] – Jared joined USV earlier this year and it’ll be interesting to see how his writing changes as he adds ‘institutional VC’ to his founder and angel investor knowledge.

Founder Vesting 85

Founder Vesting Vesting Cap Table Founder 85

venturehacks.com

FEBRUARY 24, 2010

SUPPORTED BY Products Archives @venturehacks Books AngelList About RSS How to pick a co-founder by Naval Ravikant on November 12th, 2009 Update : Also see our 40-minute interview on this topic. Picking a co-founder is your most important decision. It’s more important than your product, market, and investors.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

This is going to be BIG.

DECEMBER 3, 2020

The partner at the fund, the VC, gets to do the fun part—the meeting with founders, vetting deals, negotiating, helping, etc. Side Benefits Ideally, a small fund could get you the following, but you have to ask to make sure it’s available: Co-investing opportunities. So what’s the point? Access to the partner.

Portfolio 103

Portfolio Syndicate Syndication Deal Flow 103

Haystack

OCTOBER 2, 2019

Before we dive into this, let me say (1) I know a lot of people personally who run these accelerators and consider them friends (and darn good people); and (2) I know there will be a bunch of founders who will say “Hey, well, I met some great investors this way, so it can work.” Ultimately, the buck stops with the founder.

Deal Flow 106

Deal Flow Cap Table Early Stage Institutional Investors 106

Eric Friedman

JUNE 27, 2016

Big strategic advisors are the folks that add credibility to your co. from a 10 year old co. I have seen what I call “predatory advisors” come in and really mess up a cap table by promising big intros and sales contracts only to disappear after the first 6-12 months. How many companies do you advise today?

Equity 98

Equity Vesting Cap Table Common Stock 98

OnlyOnce

OCTOBER 28, 2021

My co-founders, I’ve worked with for an average of 15 years – we know and trust each other tremendously. And for the most part, the same is true about our cap table. No institutional debt like a messy cap table, legacy people issues, leases for offices we don’t want or need any more.

Cap Table 62

Cap Table Cofounder Early Stage Leadership 62

Hunter Walker

DECEMBER 30, 2022

The same can be said of startups and their founders, in the sense that so many things can go wrong in the building of a company to an exit, that success almost seems to be a statistical anomaly [more on how bees fly ]. See, it happens to investors too, not just founders. So this is the other side of the coin from above.

Cap Table 92

Cap Table Venture Capital Cofounder Portfolio 92

Hunter Walker

AUGUST 26, 2022

I had gone to high school with the founders in the Seattle area, and we had recently reconnected. My boss, Jen Grant , was an incredible manager, and Aaron Levie, the co-founder and CEO, was a fantastic partner on all things communications. I tried to get hired at Better Place and failed. Enter Box. They gave me a shot.

IPO 123

IPO Cofounder Early Stage San Francisco 123

Spencer Fry

APRIL 17, 2017

It wasn’t enough at the end of 2015 to have a working prototype and a handful of customers to somehow take over the market. If this is the case, you may find yourself starting all over with little revenue (if any), a 1-2 person team that might be consulting on the side to pay bills, and no marketing spend. Something has to give.

Bootstrapping 63

Bootstrapping Cap Table Liquidation Preference Cofounder 63

David Teten

JULY 12, 2017

I thought it might be helpful to provide transparency on how we and many of our VC peers think about optimizing the cap table for our companies. . First, a formal definition: According to Capital Dynamics , “Co-investments are direct investments in a company made alongside and on the same terms as a lead [General Partner].

Syndicate 60

Syndicate Syndication Institutional Investors LP 60

This is going to be BIG.

NOVEMBER 16, 2023

That’s how it feels when your hot deal from two years ago winds up running low on cash and gets into a pay-to-play round that wipes out the cap table. In some cases, people pick a sector before others that ends up creating the biggest alpha in the markets (crypto, fintech, etc). But I thought I was good!?” You have outcomes.

Non-Compete 97

Non-Compete Cofounder Cap Table Reputation 97

OnlyOnce

FEBRUARY 9, 2022

In our prior lives, the Bolster founders worked together to scale up a business called Return Path and also. worked as advisors and mentors to numerous early stage founders and startups. The roots of Bolster Prime and Bolster Ventures pre-date the founding of Bolster. What about the middle?

Silicon Valley 62

Silicon Valley Venture Capital Cap Table Early Stage 62

venturehacks.com

OCTOBER 21, 2010

Update : Check out our $9 cap table which calculates the effect of the option pool shuffle on your effective valuation. Do you mean the shares go to the founders? What if the founder already included an option pool in the existing shares outstanding? share to $1.00/share: Or we can just do 10% standard terms.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

David Teten

AUGUST 21, 2019

Most founders who are raising capital look first to traditional equity VCs. RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance. But should they? Less or no dilution.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Professor VC

AUGUST 14, 2012

I had a conversation recently with Alex Mittal, Co-founder and CEO of FundersClub (FC) and decided to revisit my blog post from last fall that was skeptical of crowdfunding for angel investments. Micro Ventures ) or provide a secondary marketing between investors (i.e. Second Market ).

Accredited Investor 42

Accredited Investor SEC Cap Table Angel Groups 42

David Teten

OCTOBER 1, 2015

Should you co-found your company with a software development shop? I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. What are the terms of their relationship with the founder?

Software Development 60

Software Development Software Developers Software Review Technical Cofounder 60

abovethecrowd.com

JUNE 2, 2021

Marketing 101: Customers love free stuff. As a result, it is a common marketing practice to offer things “for free” in order to impact customer behavior or encourage customer loyalty. That’s why it is a tried and true marketing scheme. Warren Buffet, 1997. You know what customers like more than free stuff?

IPO 82

IPO Customer Matching Silicon Valley 82

Hearpreneur

AUGUST 20, 2023

#4- Find the right relationships Photo Credit: Mike Pio Roda “Never leave money on the table” might seem tempting, but it's not always the wisest path for founders and business owners. By remaining adaptable and responsive to feedback and market trends, I was able to make timely adjustments to my strategies and offerings.

Entrepreneur 112

Entrepreneur Cap Table Dividend Cofounder 112