genylabs.typepad.com

SEPTEMBER 24, 2011

Emergent Research works with corporate, government and non-profit clients. where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have. My post looks at this from the consultant/employee point of view. government policy. Disclosure Policy.

Equity 40

Equity Technical Review San Jose Stock 40

Gust

NOVEMBER 15, 2012

In my own portfolio I have companies that are generally perceived to be extremely successful with high profile customers and lots of sales…but they just happen to have a liquidation preference ladder of $25 million!

Seed Stage 131

Seed Stage Hockey Stick Cap Table Liquidation Preference 131

ithacaVC

SEPTEMBER 20, 2011

In “VC world” Rule 409A is best known for providing a safe harbor for private company valuations, and in particular the setting of strike prices for employee stock options. If the company conducts an outside independent valuation, then, under 409A, the burden is on the IRS to prove that the valuation was not reasonable (i.e.,

Liquidation Preference 49

Liquidation Preference Common Stock Stock Options Valuation 49

Gust

MAY 24, 2012

As a quick review, most startups begin life as corporations with a single class of equity securities, referred to as Common Stock , issued to founders, employees, and outside service providers. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

IPO 159

IPO Equity Common Stock Stock 159

abovethecrowd.com

APRIL 20, 2016

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. We have already seen examples of founders and management obtaining liquidity in front of investors.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Austin Startup

APRIL 1, 2017

TL;DR Nutshell : There are few governance-related decisions with a more outsized impact on a company’s power structure than the selection of an independent director. They’ll focus on high-level issues like valuation, liquidation preference, and board composition (# of seats), and then prematurely check out once a term sheet is signed.

Term Sheet 48

Term Sheet Institutional Investors Lead Investor Technical Review 48

Up and Running

MARCH 29, 2017

I hired an employee who had B2B SaaS marketing experience, and he worked on getting users while I worked on building new features that would convince them to stick around. Small business owners are notorious for being fickle about the software that they use and even if you can get a user to stick around, they still might go out of business.

Term Sheet 60

Term Sheet Venture Capital Liquidation Preference Valuation 60