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Venture Capital Q&A Session

Both Sides of the Table

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). People also buy for defensive reasons or ego but that’s a different story.

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

The Startup Magazine

nominal versus market price), this is seen as quick revenue. To keep things simple, we’re skipping over possible capital gains taxes. . Additionally, it is very localized, so be sure to consult your local tax law or an accountant. The following are the general tax regulations.

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Startup = Growth

paulgraham.com

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.

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Is it Time for You to Earn or to Learn?

Both Sides of the Table

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. And let’s say that it took 4 years to exit – that’s $31,250 / year. In California that averages around 42.5%

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A Venture Capital History Perspective From Jack Tankersley

Feld Thoughts

The key reason for the explosion in capital flowing into the industry, and therefore the large increase in practitioners, had nothing to do with 1970’s performance, early stage investing, or technology. By 1994 the big software wins of the 1980’s were already funded or public.” This isn’t correct either. A good example is Symantec.

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My Top 10 Methods To Make Money Online

Entrepreneurs-Journey.com by Yaro Starak

Although challenging at times to find sponsors, I was quickly able to bring in several hundred dollars per month in advertising revenue by directly approaching online companies who I considered good targets for my readership. Thus began my love affair with banner advertising.

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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. Interim liquidity plus long-term capital gains work really, really well.