Remove Distribution Remove Dividend Remove Early Stage Remove Networking
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Similarly, when Flexible VC structures are based off of the founder’s own compensation (often via salary or dividends), investors are specifically tying their returns to the financial success of the founder. Founder Earnings” (Founder Salaries + Dividends + Retained Earnings). Profits, Founder Salaries, and/or Dividends Declared.

article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

  Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.   First , dividends. In some cases, dividends are often paid at the discretion of the board and not required by the terms.   A cumulative dividend compounds annually.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Should Startups Announce Their Funding?

Both Sides of the Table

If you’re a very early stage startup that just raised your first angel money it is very possible that the funding announcement will be your first big tech news. It’s sort of like when we had three networks and they controlled the TV news. So in my opinion you should design your funding story to get wide distribution.

Startup 355
article thumbnail

The Power of “In Person” – Why Distributed Teams are Less Effective

Both Sides of the Table

In the era of Skype, web conferencing tools and collaboration software conventional wisdom says that distributed startup teams can be just as effective as those that are in person. Or more precisely the people espousing the benefits of distributed startups teams are often distributed and therefore self rationalizing it.