Startup Professionals Musings

JULY 19, 2013

Most entrepreneurs struggle with many startup Founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Should you start a company solo or find co-Founders to help you? The co-Founder relationship dilemma.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

Berkonomics

JUNE 12, 2014

So co-management is the second group to share in the bounty upon a liquidity event. Often, if not co-founders, this group is rewarded through issuance of stock options from a pool of available options that usually totals 15-20% of the total company’s equity divided among all employees.

Liquidity Event 85

Liquidity Event Pre-Money Valuation Cofounder Initial Public Offering 85

Startup Professionals Musings

MAY 18, 2015

Even though initial stock has no value or market, it is extremely valuable in dividing entity ownership between multiple co-founders, commensurate with their investment, contribution and role. Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out.

Stock 120

Stock Vesting Common Stock Founder Vesting 120

Seeing Both Sides

SEPTEMBER 15, 2015

This post was co-authored with Omri Stern and originally appeared in Harvard Business Review. We selected this benchmark because it reflects the phase in which companies have proven product viability, achieved initial product/market fit, and are now expanding sales and growing more complex operations. American VCs are critical.

Israel 20

Israel Cofounder Technical Review United States 20

Berkonomics

OCTOBER 4, 2018

I cannot recall ever attending a closing dinner for a sale in which we returned only a portion of the investor group’s money. In fact, I don’t recall any formal post-sale meeting at all; even to digest the lessons learned from the entire experience, a missed opportunity for all. But the silence….

Sales 54

Sales Investment Bankers Initial Public Offering Early Stage 54

Both Sides of the Table

MARCH 3, 2013

The numerator (return) encourages more sales, which is fine. I reinforced this view by referring to a very interesting article I had read by Andy Grove (co-founder & former CEO of Intel) on car batteries, china manufacturing and the problem of US outsourcing. He spoke about ROCE (return on capital employed).

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

Gust

NOVEMBER 4, 2011

For more page-turning corporate drama, including the feud between Intermix co-founders and UCLA college buddies Brett Brewer and Brad Greenspan, Nasdaq delisting, proxy contest and lawsuits by Greenspan after he was fired as CEO, see Stealing MySpace by WSJ reporter Julia Angwin. MySpace became its own company, MySpace, Inc.,

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). The liquidation preference would not apply in this situation, and any distribution to stockholders would trigger the dividend preference. Co-sale rights.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

The Next Web

SEPTEMBER 29, 2013

Before StartEngine, Howard co-founded Activision and founded Acclaim Games. . Weaknesses inside the founder team kill startups. The truth is, sometimes you need to replace your co-founders and start over. You’re basically tinkering with everything at this stage – product, marketing, sales, partnerships, etc.

Metrics 136

Metrics Cofounder Cram Down Liquidity Event 136

Berkonomics

SEPTEMBER 23, 2011

– the overly enthusiastic celebration of an outcome larger than expected. But I cannot recall ever attending a closing dinner for a sale in which we returned only a portion of the investor group’s money.

Investment Bankers 63

Investment Bankers Initial Public Offering Early Stage Cofounder 63

Berkonomics

AUGUST 27, 2015

He has served as advisor to and member of numerous financial exchanges, and was the founder and CEO of Arthur Lipper Corporation and co-founder and Chairman of New York & Foreign Securities Corporation. Today he serves as Chairman of British Far East Holdings Ltd.

Intellectual Property 48

Intellectual Property Balance Sheet Stock Options Valuation 48

www.vccafe.com

MARCH 11, 2013

.” Hackernews list of “Tools of the Trade” for startups - includes over 150 SaaS tools used by startups, and over 150 comments with interesting insights from founders. turn customer feedback into sales and relationships. Founders Institute Plain Preferred Term Sheet â?? Founder Equity Issues. Zendesk â??

Software Review 53

Software Review Technical Review Israel Startup 53

www.quora.com

JANUARY 16, 2011

Find Questions, Topics and People Add Question Add Question Non-Technical Co-Founders Co-Founders Technical Co-founders Finding Co-Founders Startups & "How Important Are Ideas?" " Web Development Startups Solo Founders I am a creative guy with a startup idea.

Developer 42

Developer Technical Review Cofounder Technical Cofounder 42