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How to split startup equity between startup founders when starting a new business

The Startup Magazine

Equity allocation is also inextricably tied to the stage of financing. At that point, the options are converted just before the sale, and the shares are then sold with the rest of the firm. To keep things simple, we’re skipping over possible capital gains taxes. . The differences between shares and options.

Equity 171
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Series Seed Financing Documents

www.seriesseed.com

SeriesSeed.com Series Seed Financing Documents Blog Home Documents Blog Archives Subscribe 09/02/2010 Version 2.0   That’s because there are not that many issues to negotiate in a simple equity financing. Let’s imagine that using the more simple documents saves 10% of the time and money involved in a seed financing.

Finance 58
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Series Seed Financing Documents

www.seriesseed.com

Series Seed Financing Documents Blog. Series Seed Financing Documents. Listed below are links to weblogs that reference Series Seed Financing Documents : 1 Reblog. Long term capital gains possible for early exit. My quest is to simplify financing for seed stage investments. SeriesSeed.com. Blog Archives.

Finance 40
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Playing the Long Game in Venture Capital

Both Sides of the Table

It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales. This “overnight success” was first financed in 2004. Interim liquidity plus long-term capital gains work really, really well.

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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For

Finance 134
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Why You Can’t Afford To Wait To Create A Succession Plan For Your Small Business

YoungUpstarts

In 2015, CNBC and the Financial Planning Association conducted a survey, which concluded that 78 percent of small-business owners planned on selling their own businesses so that they had the finances to be able to retire. The sale price of the company needs to account for that equity.

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Thoughts on Convertible Notes

K9 Ventures

The convertible note was really intended as an instrument for a “bridge financing” – when an equity round was imminent, and likely to occur, but the company needed some money in between. In that case, it made good sense to have a debt instrument, where the note holder then converted into equity when the financing occurred.