Steve Blank

APRIL 10, 2019

One other thing to note is that all employees – founders, early employees and later ones – all had the same vesting deal – four years – and no one made money on stock options until a “liquidity event ” (a fancy word to mean when the company went public or got sold.) It’s called Growth capital.

Stock Options 335

Stock Options Stock Vesting Common Stock 335

Steve Blank

JUNE 11, 2013

And what are its costs? If you’re a scalable startup, you want to spend small amounts of money (seed capital) as you run experiments testing your hypotheses. How much do they need to own at a liquidity event? How do we attract, keep and grow customers? What are revenue strategy and pricing tactics? What is an IRR?

Venture Capital 335

Venture Capital IRR Liquidity Event Business Model 335

Steve Blank

JUNE 11, 2013

And what are its costs? If you’re a scalable startup, you want to spend small amounts of money (seed capital) as you run experiments testing your hypotheses. How much do they need to own at a liquidity event? How do we attract, keep and grow customers? What are revenue strategy and pricing tactics? What is an IRR?

Venture Capital 227

Venture Capital IRR Liquidity Event Business Model 227

Gust

SEPTEMBER 5, 2012

Angel investors don’t expect to get repaid, nor do they really want to get repaid; the return on their investment, if the startup proves a success, will come in conversion to equity followed by an eventual liquidity event (sale or IPO of the company), with a return of at least 5x or 10x the initial investment if all goes well.

Finance 134

Finance Convertible Security Equity Seed Stage 134