The Next Web

OCTOBER 3, 2012

2 founders + employee #1), the single employee at the company is a 33% partner in building the company culture and products. So, growing more not only has the effect of adding more weight to the company, but also of diluting each employee’s decision-making stake (feeling of overall responsibility) in the company.

Cofounder 155

Cofounder Technical Cofounder Technical Review Software Review 155

The Startup Magazine

FEBRUARY 2, 2021

Many academic labs are less interested in market trends and largely ignore competitive landscape and market demands. This unique business model is proven to secure strategic and non-dilutive capital as part of a business model. As a result, research funding is not met with a reasonable return on investment.

Technical Review 150

Technical Review Syria Developer United States 150

The Next Web

SEPTEMBER 13, 2013

In India, the leading firms are slightly more concentrated with Sequoia India , Accel Partners , and Nexus Venture Partners being a cut above the rest. This is driven both by supply and demand. Finding the right partner is a much bigger win than the extra cash or minimizing dilution. Thus, VCs have the upper hand.

Asia 132

Asia Silicon Valley India Term Sheet 132

YoungUpstarts

OCTOBER 16, 2016

We witness so many of the subtle gains of our labor – ideas made real, people turned passionate partners and the prospects of inching ever-closer to a long-term future rather than the great likelihood of total business failure. Re-set the vendor and partner paradigm. Expect it, plan for it and don’t apologize for it.

Cofounder 100

Cofounder Balance Sheet Small Business Administration Technical Review 100

Startup Professionals Musings

JANUARY 15, 2021

It’s disconcerting for most to realize that these shares are initially worth nothing, and the challenge is to get that value up as quickly as possible, without losing it just as quickly to investors, lazy partners, and taxation. This is called stock dilution control. Minimize your own loss of ownership as major investors contribute.

Vesting 298

Vesting Dilution Stock Founder Vesting 298

The Startup Magazine

AUGUST 9, 2022

The company partners with artists, labels and publishers to make their music accessible for use in ads/content, all while helping artists monetize their music while doing what they love – making great music. One of the most underrated jobs of a leader in a scaling organization is making sure the culture doesn’t get diluted.

Cofounder 158

Cofounder Founder Miami Marketing 158

Startup Professionals Musings

JANUARY 31, 2020

The simple solution I recommend to inventors is to find a partner who can focus on business and marketing, while you focus on technology. In fact, they may fear team leadership as a burden, or a potential dilution of their ownership. Two people with complementary skills are often equal to three.

Founder 312

Founder Intellectual Property Dilution Startup 312

Startup Company Lawyer

MARCH 14, 2010

I was actually somewhat surprised that the following investors have agreed to use the Series Seed documents in certain of the their deals: Baseline, Charles River Ventures, SV Angel (Ron Conway), First Round Capital, Harrison Metal Capital, Mike Maples, Polaris Venture Partners, SoftTech VC and True Ventures. Anti-dilution protection.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

David Teten

JANUARY 21, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. Jonathan Bragdon , CEO, describes Capacity as “a team of founders-turned-funders making non-dilutive, founder-aligned investments of $50-$300k in post-startup, post-revenue businesses planning to 2X revenues in 12-24 months. 20% initial ownership.

Equity 78

Equity Revenue Cofounder Colorado 78

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. Capacity Capital, Greater Colorado Venture Fund, Indie.VC, Reformation Partners, UP Fund, Versatile VC. Of the Inc. return cap.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Feld Thoughts

MARCH 24, 2017

Lindel joined Foundry Group as a partner to lead the fund investing activity of Foundry Group Next. We’ve had the opportunity to work with Founder Collective’s partners – David Frankel, Eric Paley, and Micah Rosenbloom – over the years on several companies. But they didn’t take advantage of that demand.

Founder 75

Founder LP Technical Review Seed Stage 75

Startup Professionals Musings

SEPTEMBER 27, 2023

It’s disconcerting for most to realize that these shares are initially worth nothing, and the challenge is to get that value up as quickly as possible, without losing it just as quickly to investors, lazy partners, and taxation. This is called stock dilution control. Minimize your own loss of ownership as major investors contribute.

Stock 240

Stock .Net Vesting Founder Vesting 240

Startup Professionals Musings

JUNE 13, 2020

VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles. How big is your startup opportunity?

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314

Startup Professionals Musings

MAY 8, 2022

Don’t wait for the harsh reality of the demanding business world to start thinking about these tradeoffs. The downside is loss of control and financial dilution. Old co-workers or new friends with complementary skills usually make the best partners. That’s not an attractive statistic if you crave control and power.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

Startup Professionals Musings

NOVEMBER 6, 2020

Growth entrepreneurs quickly find themselves removed from day-to-day operations, and become more and more occupied by transactions with lawyers, investors, and potential acquisition partners. Once you accept equity investor money, or go public with stockholders, you won’t believe the things they demand, and the legal rules you have follow.

Small Business 311

Small Business Small Business Administration SBA Equity 311

Babbling VC

OCTOBER 3, 2011

For those of you not in the know, they are one of the largest limited partners ( LP's : investors in venture capital funds) in Europe and are basically in almost all the funds throughout the market. Hypothesis 9: The problem is on the demand side . Fortunately, for those of us in the market long enough, it's actually good news.

LP 82

LP Europe Germany Venture Capital 82

Both Sides of the Table

FEBRUARY 22, 2011

Here’s the problem: Let’s say you have 5 VCs (plus angels but let’s ignore that for now) and each one owns 5% so you took 25% dilution to get the round done. Let’s say each of those 5 partners has at least 7 other investments each. The most common case is that the partner who did the deal left the firm.

Dilution 314

Dilution Cap Table Due Diligence Option Pool 314

Both Sides of the Table

JUNE 17, 2017

Is the revenue dependent on a concentrated set of distribution partners or platforms that put future revenue at risk? They hired a biz dev team to work on deals where their product could be embedded in other people’s products as a way to increase customer demand. Stock option grants dilute your ownership in the company.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Austin Startup

JULY 6, 2018

Ask the Users Startup Accelerators: Bundled and Unbundled Over the past several years, accelerators have emerged as a powerful filtering and signaling mechanism in early-stage startup ecosystems, allowing high-potential young startups to connect with investors, advisors, and other strategic partners far faster and more efficiently than before.

Dilution 48

Dilution Startup Technical Review Equity 48

www.paulgraham.com

APRIL 28, 2010

A lawyer I asked about it said: When the company goes public, the SEC will carefully study all prior issuances of stock by the company and demand that it take immediate action to cure any past violations of securities laws. Whatkind of anti-dilution protection do they want? Not all the people who work at VC firms are partners.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Startup Professionals Musings

AUGUST 2, 2014

VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles. How big is your startup opportunity?

Angel Investor 266

Angel Investor Entrepreneur Venture Capital IRR 266

View from Seed

OCTOBER 28, 2019

In other words, the goal of a pre-seed round isn’t to subsequently raise a Series A (which these days requires both product-market fit and meaningful evidence of strong market demand), but to raise another round of seed financing. It really does depend from startup to startup.

Seed Stage 247

Seed Stage Finance Dilution Early Stage 247

Startup Professionals Musings

DECEMBER 14, 2014

Don’t wait for the harsh reality of the demanding business world to start thinking about these tradeoffs. The downside is loss of control and financial dilution. Old co-workers or new friends with complementary skills usually make the best partners. That’s not an attractive statistic if you crave control and power.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

Startup Professionals Musings

MARCH 12, 2023

VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles. How big is your startup opportunity?

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

Startup Professionals Musings

JULY 19, 2013

Don’t wait for the harsh reality of the demanding business world to start thinking about these tradeoffs. The downside is loss of control and financial dilution. Old co-workers or new friends with complementary skills usually make the best partners. That’s not an attractive statistic if you crave control and power.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

Startup Professionals Musings

JUNE 2, 2019

Many busy new venture owners believe they have heard it all before, so they tune out of conversations, or revert to multi-tasking, thus diluting their leadership. Your words are important in garnering the trust and loyalty of your team, your peers, and partners. Practice active listening and full attention to those present.

Leadership 244

Leadership Dilution Metrics Demand 244

ConversionXL

NOVEMBER 15, 2022

Your customers, followers, shareholders, and partners want to be impressed. It might make sense to move more live chat staff over to the phones to handle demand. Alt Tag: Example from a presentation by Brent Dykes that shows how unnecessary noise dilutes data. Stacked bar charts are best used for small data sets.

Marketing 100

Marketing Analytics Audience Design 100

Startup Professionals Musings

AUGUST 10, 2019

Don’t wait for the harsh reality of the demanding business world to start thinking about these tradeoffs. The downside is loss of control and financial dilution. Old co-workers or new friends with complementary skills usually make the best partners. That’s not an attractive statistic if you crave control and power.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

Both Sides of the Table

APRIL 25, 2011

The founders could reinvest this in growth (0% tax, focus on future equity growth) or take the profits of $12 million and divide amongst the founding partners. You end up needing to add staff and take on more risk without knowing what your future demand will be. That is $12 million in profits over 3 years.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Both Sides of the Table

MAY 30, 2018

If a VC prices a flat or down round it means that management teams are often taking too much dilution. How you talk about valuation will of course depend on how well your business is performing and how much demand you have from other investors. But there is also another very rational reason.

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

rapidrollout.wordpress.com

JANUARY 15, 2011

He or she might call himself a “consulting CTO,&# “freelance CTO,&# “on-demand CTO,&# “CTO on call,&# “CTO for hire,&# or just a “technology strategy advisor.&# Also, working with a consulting CTO will prepare you for finding and selecting a permanent technology partner.

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

Startup Professionals Musings

JULY 26, 2019

People need coaching to weather setbacks and surprises which can dilute their confidence, and take away their ability to experience their full potential. Only hire and partner with people who have a positive outlook. Good coaches prepare for each session and follow up. Coaching is not casual conversation, or for off-the-cuff comments.

Dilution 229

Dilution Agile Developer Demand 229

99u.com

DECEMBER 22, 2012

Assuming no dilution (which is not a good assumption), this means you need to sell for $200 million. If tenths of a percent of options for an advisor causes too much dilution, then youve failed anyway. Jeffrey Bussgang General Partner at Flybridge Capital Partners, Author of "Mastering the VC Game ". Fred Wilson.

Turkey 40

Turkey Dilution Portfolio Exit Strategy 40

Ben's Blog

APRIL 1, 2011

If the sales team made unreasonable demands on the product organization, then that was my fault. Raise money in a highly dilutive way. My partner Scott Weiss relayed that it’s so common that there is an acronym for it: WFIO which stands for We’re F#%ked, It’s Over (it’s pronounced whiff-ee-yo). It kind of sucked to be me.

Management 78

Management Cap Table Balance Sheet Bankruptcy 78

ReadWriteStart

JANUARY 13, 2024

In a progressively saturated market, these startups need to reevaluate their strategies and wisely distribute resources to remain competitive and sustainable amidst the demands of investors and well-established competitors.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

The Next Web

FEBRUARY 27, 2014

George Deeb is the Managing Partner at Chicago-based Red Rocket Ventures , a startup consulting and financial advisory firm based in Chicago. Supply and demand. To start, let’s not forget about the obvious: the natural economic principles of supply and demand apply to valuing your business. The more scarce a supply (e.g.,

Valuation 167

Valuation Forecast Seed Stage .Net 167

Up and Running

MAY 27, 2014

You should think of choosing an investor the same way you consider choosing a business partner, because after you take their money, they become a partner in your business. And if you choose a partner based on money alone, you’re going to find yourself in trouble. (It Every time an investment is made, everyone dilutes!).

Angel Investor 119

Angel Investor Dilution Accredited Investor Due Diligence 119