Agile VC

OCTOBER 23, 2012

Startup outcomes are a power law distribution rather than a standard distribution. This impact of exceptional returns is diluted some at the fund level due to portfolio effect, so the distribution between the best and worst funds is far narrower than the distribution of startup outcomes.

LP 176

LP Accredited Investor Carried Interest Distribution 176

Startup Lessons Learned

AUGUST 24, 2009

One is explaining the world as it used to work: the importance of gatekeepers, the scarcity implied by limited distribution, and the resulting quality bar that the industry is so proud of. Mostly it is the time and expense required to create the means of distribution for that industry. It’s just taking some longer than others.

San Francisco 113

San Francisco Lean Technical Review Distribution 113

VC Cafe

JUNE 10, 2022

As a result, founders are accepting increased dilution of the stakes they hold in their own companies. The first version of its smart glasses (code name Orion) will be distributed to Developers (according to TheVerge ). Bloomberg reports that Meta also stopped the launch of a new smart watch with two cameras.

Valuation 151

Valuation Marketing Israel Venture Capital 151

thinkspace.com

SEPTEMBER 7, 2012

The part that I’d like to zero in on is when you’ve got a high growth company what are some of the best practices out there to distribute equity to the founders, advisors, and employees? The one thing that I think is missing is distributing equity to every single employee in the company regardless of title. Title Range (%).

Equity 62

Equity Employee Founder CTO Hire 62

Startup Professionals Musings

SEPTEMBER 5, 2015

Sometimes great new businesses, such as Starbucks, are built on the oldest of base products, but with better customer service, distribution, marketing or a new pricing model, by a smart, determined entrepreneur such as Howard Schultz. A team is often seen as a burden to an inventor, and may potentially dilute or steal ownership.

Entrepreneur 120

Entrepreneur Dilution Partner Distribution 120

Business Plan Blog

OCTOBER 4, 2013

While some investors will be willing to help you build your team, they will not be willing to invest in your startup if you are not willing to distribute responsibility and bring on diversified expertise. Having too many co-founders will only lead to your eventual dilution. Never confuse the number of years worked with experience.

Part-Time VPE 79

Part-Time VPE Fractional VPE Cofounder CTO Hire 79

Gust

APRIL 11, 2014

Let’s get right down to business: Dilution of founders’ and other early shareholders’ equity in startups is frequently a subject of intense interest and debate. That’s the concept of what some call mathematical dilution. That is not economic dilution, but rather its opposite ( accretion ).

Dilution 162

Dilution Equity Pre-Money Valuation Prospectus 162

The Next Web

SEPTEMBER 15, 2013

Most recently, the Netflix API team, which used to provide traditional REST APIs to the Netflix UI teams, is now providing content distribution platforms that enable data to be pushed from our AWS backend systems to the devices in people’s homes and pockets. More changes have since been made with the API.

API 135

API Audience Dividend Programming 135

Hunter Walker

JANUARY 2, 2017

Next Level: Buying Customers/Revenue/Distribution. It could lower earnings because of continued investment and share dilution. See Mint and Periscope as examples. There are so many reasons for a current Fortune 500 CEO to *not* bet the farm and make a big tech acquisition. It could go wrong and they’ll look stupid.

Technical Review 131

Technical Review Cap Table Acquisition Startup 131

Startup Company Lawyer

MARCH 14, 2010

If new investors get better rights in a future equity financings (such as registration rights, price-based anti-dilution, redemption rights, etc.), The liquidation preference would not apply in this situation, and any distribution to stockholders would trigger the dividend preference. Anti-dilution protection. Future rights.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Startup Professionals Musings

OCTOBER 9, 2021

A popular myth these days is that finishing college only dilutes your entrepreneurial instincts, and the best of the best, including Bill Gates, Steve Jobs and Mark Zuckerberg, dropped out early to hasten their success. I agree with Robert E. Find summer internships and part-time work in your field of interest.

Entrepreneur 373

Entrepreneur Chad Incubator Dilution 373

Life Beyond Code

SEPTEMBER 27, 2011

Thus, I have come to the conclusion that if I could help a million entrepreneurs globally reach $1 million in revenue (and beyond), that would be the foundation of a robust, distributed, and sustainable economic value creation that would add up to a trillion dollars in global GDP. a distributed, democratic model of capitalism.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116

VC Adventure

AUGUST 16, 2020

Yet others try to use cash to minimize dilution for early employees and try to rapidly reduce their reliance on options. Some feel that, especially for early employees, options should act as a reward for taking startup risk.

Programming 148

Programming Vesting Equity Software Review 148

Up and Running

JUNE 14, 2012

So take this to pre-money level and assuming 50% dilution, it will be 12-20% (assume 16%) for the CEO and 4% for VP of Engineering. Deciding how many co-founders you need, who to bring aboard, and how to distribute equity all depend on your individual skills and the gaps you need filled. Conclusion.

Cofounder 90

Cofounder Technical Cofounder Accredited Investor Equity 90

Both Sides of the Table

APRIL 21, 2013

Given the brand dilution going on with the name Sriracha how can he still grow his business? I wonder how agressive they are with digital distribution. He can’t trademark it since it’s the name of a city. By the way, he has never spent a dollar on advertising. Provide something distinctive. What will you be known for?

Vietnam 415

Vietnam Los Angeles Entrepreneur Thailand 415

Startup Professionals Musings

NOVEMBER 15, 2014

A popular myth these days is that finishing college only dilutes your entrepreneurial instincts, and the best of the best, including Bill Gates, Steve Jobs and Mark Zuckerberg, dropped out early to hasten their success. I agree with Robert E. Find summer internships and part-time work in your field of interest.

Chad 279

Chad Incubator Dilution LLC 279

Startup Professionals Musings

MARCH 14, 2020

Founder insistence on non-dilute clauses, arms-length relationships, and quick closure without due diligence will short-circuit active interest. Marketing programs and distribution channels are required for even the best solutions, with an appropriate and viable rollout and growth strategy. Dysfunctional or non-functional team members.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Startup 308

View from Seed

SEPTEMBER 14, 2021

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. This is particularly relevant for VC funds because they do not follow a normal distribution, they follow the power-law curve.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

View from Seed

JULY 15, 2020

Other companies are great businesses, but are effectively encountering a dilution event. The business will ultimately emerge on the other end in good shape, but everyone will be more diluted as a result. Unevenly distributed, but broadly optimistic. But that remains to be seen. Some companies are sucking wind, some are thriving.

Portfolio 215

Portfolio IRR Dilution Distribution 215

This is going to be BIG.

JANUARY 18, 2024

On the other hand, they could be the opposite—much more focused on near-term cash distributions than long-term equity appreciation. They might have a more flexible time horizon than a VC because the money doesn’t come from a fund with a limited lifespan.

.Net 88

.Net Cap Table Startup Technical Review 88

Tim Keane

JANUARY 12, 2010

A liquidation preference means that the investors receive their investment back (plus dividends) prior to a distribution of the proceeds to stockholders. The investor may also ask for a participation in which the investors receive some additional multiple of their investment prior to distribution of proceeds to stockholders.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

DECEMBER 11, 2022

Founder insistence on non-dilute clauses, arms-length relationships, and quick closure without due diligence will short-circuit active interest. Marketing programs and distribution channels are required for even the best solutions, with an appropriate and viable rollout and growth strategy. Dysfunctional or non-functional team members.

Due Diligence 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271

View from Seed

SEPTEMBER 14, 2021

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. This is particularly relevant for VC funds because they do not follow a normal distribution, they follow the power-law curve.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

Startup Professionals Musings

OCTOBER 28, 2018

A popular myth these days is that finishing college only dilutes your entrepreneurial instincts, and the best of the best, including Bill Gates, Steve Jobs and Mark Zuckerberg, dropped out early to hasten their success. I agree with Robert E. Find summer internships and part-time work in your field of interest.

Chad 242

Chad Incubator Startup Dilution 242

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? That management team might have decided that they wanted to maintain more control of their company, didn’t want new board members and didn’t want to take dilution. The answer may not be known for many years.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

ConversionXL

NOVEMBER 6, 2017

What works for first-time customers might have less of an effect on (and be diluted by) people who are returning to buy again. Your experimental controls, Stewart says, need to be equal: sample size, performance range, and distribution of outlier behavior.

Chad 112

Chad Mobile Technical Review Aggregator 112

Lightspeed Venture Partners

SEPTEMBER 21, 2013

With his back to the wall and about to run out of money, his first priority should have been runway extension, not dilution from new capital. pre money valuation seems big, the actual implication is only between 5% and 10% dilution since the round size is small. And although the headline difference between a $5.7M

Pre-Money Valuation 167

Pre-Money Valuation Valuation Dilution Distribution 167

YoungUpstarts

OCTOBER 10, 2014

The amount you put toward debt minimizes reinvestment in growth and earnings distributions to owners. Financial Risk Distribution. Aside from paying your bills, you do not have to distribute profit to others. The more equity investment you use to develop the business, the more diluted your personal earning potential becomes.

Equity 176

Equity Limited Liability Company Vietnam Finance 176

www.inc.com

SEPTEMBER 24, 2011

Besides the future potential earnings youre forgoing, youre also diluting your own ownership in the company. The offering to a consultant may affect your securities compliance in later offerings and will certainly add to further dilution to founders," Durkin says. CDW your 1-stop resource for configuration, activation & distribution.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Both Sides of the Table

MAY 30, 2018

Many VCs will have a distribution curve where they’ll do a small number of early-stage deals (say $1.5–3 If a VC prices a flat or down round it means that management teams are often taking too much dilution. If I assume 20–25% dilution that implies a price of between $20–28 million pre-money valuation ($25-$35m post-money).

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

David Teten

JANUARY 19, 2021

Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. That said, Jonathan Bragdon, General Partner, Capacity Capital , points out that Flexible VC terms “twin” well with equity: providing less dilution while still providing investor assistance. . Early liquidity.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Lightspeed Venture Partners

NOVEMBER 19, 2012

The first 15,000 units sold out in six weeks in specialty retailers that distributed it in the Quantico area, and another 80,000 are being made now. But I think that given the demand, he could have held firm on valuation and either given up slightly less equity or taken in slightly more money for the same dilution.

Pre-Money Valuation 166

Pre-Money Valuation Alabama Valuation Churn Rate 166

www.instigatorblog.com

OCTOBER 23, 2010

I get that the numbers are post Series A, but even if you assume 50% dilution, you're giving your first hire developer between 1-2%. I get that the numbers are post Series A, but even if you assume 50% dilution, you're giving your first hire developer between 1-2%. 1% is even less after you factor in dilution.

Equity 41

Equity Employee Startup Vesting 41

Lightspeed Venture Partners

OCTOBER 14, 2012

The entrepreneur is seeking not just money, but primarily contacts with buyers at big retailers to get wider distribution. They argue over who can help Cozy Bug with distribution more. Kevin’s offer seems to be pretty attractive given that there is no equity dilution. Three sharks make an offer. Kevin offered $50k.

Equity 164

Equity Dilution Redemption Distribution 164

Lightspeed Venture Partners

SEPTEMBER 16, 2012

The founder wanted to take the offer, but he called his advisor (his business school professor) who told him it was too much dilution for this stage, so he turned it down. The founders clearly believed in the upside of the company and that is why they were willing to take a lower valuation but wanted minimal dilution.

Silicon Valley 167

Silicon Valley Salary Dilution Indiana 167

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

View from Seed

SEPTEMBER 14, 2021

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. This is particularly relevant for VC funds because they do not follow a normal distribution, they follow the power-law curve.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156