Both Sides of the Table

JULY 29, 2010

In fact, far better if you haven’t raised venture capital. People buy companies for 3 primary reasons: 1) they want the management team / talent 2) they want the technology or 3) they want the market traction (revenue, customer base, profits, etc). You’re not screwing me – you’re screwing your fellow employees.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

The Startup Magazine

MAY 13, 2022

Take the time to iron out the specifics so that you can prevent misunderstandings, compensate employees properly, and run your company in a manner that is pleasant for your staff. . nominal versus market price), this is seen as quick revenue. To keep things simple, we’re skipping over possible capital gains taxes. .

Equity 171

Equity Founder Vesting Cofounder 171

paulgraham.com

SEPTEMBER 23, 2012

The best thing to measure the growth rate of is revenue. Thats a reasonable proxy for revenue growth because whenever the startup does start trying to make money, their revenues will probably be a constant multiple of active users. [ A profitable startup could if it wanted just grow on its own revenues.

Startup 111

Startup Technical Review Software Review Acquisition 111

Both Sides of the Table

NOVEMBER 4, 2009

Now … these are stock options and not restricted stock so you’ll likely be taxed at a long-term capital gains rate. Ventro was trading at $8 billion on sub $2 million of revenue. He’d be employee number 3. And let’s say that it took 4 years to exit – that’s $31,250 / year.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

The Startup Magazine

MAY 4, 2023

Disabled access credit (DAC) helps business owners scale down on costs associated with providing access to disabled employees. It offers a credit of up to $10,000, which you can claim if your business revenue crosses $1 million. Companies can take 70% credit of an employee’s qualifying pay every year.

Small Business 155

Small Business .Net Retention Employee 155

Gust

JULY 31, 2012

Typically, angel-funded companies that are going sideways have 1-10 employees and sufficient revenues and earnings to be sustainable, but are not attractive acquisition candidates to larger companies. Current US tax regulations stipulate capital gains tax rates for most angel investment with positive returns.

Exit Strategy 135

Exit Strategy Angel Investor Capital Gains Startup 135

David Teten

AUGUST 20, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching Revenue-Based Investing and other new approaches to VC. The question I’m asking myself: should a new VC fund use Revenue-Based Investing, traditional equity VC, or possibly both (likely from two separate pools of capital)? return after-taxes.

Revenue 60

Revenue SBIC Cofounder Venture Capital 60