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How to split startup equity between startup founders when starting a new business

The Startup Magazine

Equity allocation is also inextricably tied to the stage of financing. As a result, you will have no dividend or voting rights until you convert your options to stock. At that point, the options are converted just before the sale, and the shares are then sold with the rest of the firm. The differences between shares and options.

Equity 141
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How to Configure Your Startup Team

Both Sides of the Table

Your first sales people should be consultative sellers who can fuel evangelical sales. Don’t hire “relationship management” sales people too early. It will pay huge dividends in avoiding the CEO tied up in admin and allow him / her to focus on bigger picture items. Be careful about board construction.

Cofounder 388
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The Difference between Debt Financing and Equity Financing: Which Is Right For You?

YoungUpstarts

When you’re looking for extra funds, there are typically two options: debt financing and equity financing. It’s important to understand the difference between debt financing and equity financing so when it comes time to get additional funding, you know which is the right fit for your business and how to get it.

Finance 157
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Recruiting Should Be Your #1 Priority From Day 1

YoungUpstarts

Hiring = Sales. A good recruitment process has many parallels with a sales funnel. As with sales, these core reasons need to be compelling to candidates, while being as unique to you (competitive differentiation) as possible. Not sales, product development, or fundraising. Think of it as an elevator pitch for recruiting.

Cofounder 164
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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.

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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

Finance 70
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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

VI: Revenue-based financing: The next step for private equity and early-stage investment. This is a summary of: Revenue-Based financing: State of the Industry 2020. Our founders can run their companies profitably and pull out dividends, they can raise additional rounds, or they can decide to exit. redemption, revenue share, etc.)

Equity 78