David Teten

NOVEMBER 8, 2011

While some entrepreneurs may think that financial models are just a formality that needs completing in order to placate straight-laced venture capital types, the reality is that models can be essential tools for creating and analyzing the roadmap an entrepreneurial venture should follow. The answer is, almost certainly not.

Design 144

Design Recapitalization Software Review Startup 144

Both Sides of the Table

JULY 29, 2015

” And yet we entrepreneurs who will sign up for the journey accept that failure is a possibility and the true entrepreneurs know that they must stick with the ship even if it’s sinking. It’s my hypothesis of why so many founding teams have 3-4 founders. First time entrepreneurs can fall prey to hubris.

South Korea 150

South Korea Italy Recapitalization Germany 150

David Teten

JANUARY 19, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Feld Thoughts

JULY 14, 2015

So they recapitalize the company. The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company. So the new investment gets 60%, the founders get 39.9%, and the $1m of seed money gets 0.1%. and the investors, who put up $1m in a convertible note, get 0.1%.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

blog.simeonov.com

FEBRUARY 22, 2010

Simeon, can you tell us how you structure ownership and control so you can fire your co-founders if necessary? The first part will dispel some myths, address the lifecycle of founder agreements and the key compensation and control parameters in them. Let’s start by dispelling some myths: There is a standard founder agreement.

Founder 44

Founder Vesting Agile Startup 44

venturehacks.com

MARCH 21, 2008

Normal advisors are also assembled by naive entrepreneurs who think the mere presence of an advisory board will create social proof and help them raise money. A naive entrepreneur hires the wrong business advisor and a major new investor asks the entrepreneur to clean up the dead wood. Our Book Check out the free samples.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44