Berkonomics

JANUARY 6, 2022

Email readers, continue here…] Take a situation where the VC investors finally see the chance of a return after ten years, with participating preferred and fifty percent of the ownership after several rounds. Here’s an example that will make your heart skip a beat.

Dividend 62

Dividend IRR Preferred Stock Participating Preferred 62

Scott Edward Walker

NOVEMBER 26, 2017

From a practical perspective, this means getting actively involved in your local tech community, regularly attending industry events and conferences, writing blog posts/articles, integrating yourself into communities on social networks and, of course, doing outstanding work as an employee (to develop a great reputation).

Term Sheet 63

Term Sheet San Francisco Founder Investment Bankers 63

Berkonomics

OCTOBER 1, 2015

Take a situation where the VC investors finally see the chance of a return after ten years, with participating preferred and fifty percent of the ownership after several rounds. No-one complains if the sales price is ten times the investment, since there is plenty to go around.

Dividend 48

Dividend Preferred Stock IRR Participating Preferred 48

Professor VC

JULY 25, 2013

I''m a strong believer in fairness (although my daughters may not agree) and investors and entrepreneurs working together as a team to create something valuable to all stakeholders (customers, employees, founders, investors). Their response was that we should be happy they didn''t ask for a participating preference on top of the seniority.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Altgate

DECEMBER 18, 2008

Let’s recap how expensive a 3x liquidation preference really is. Say you raise $8MM at $17MM pre-money ($25MM post) with a 3x participating preferred. But non-management employees and founders will be thrown table scraps and crushed down. You could probably find some pawn shops that offer cash more cheaply.

Liquidation Preference 31

Liquidation Preference Venture Capital Post-Money Valuation Participating Preferred 31

ConversionXL

JULY 12, 2017

Zappos flipped this idea on its head a while back, training its customer support employees to go above and beyond expectations (and therefore, gaining a Guinness World Record for the longest support phone call ). First, it’s impossible to find answers to common questions like return policies.

eCommerce 100

eCommerce Mobile Conversion Design 100

ConversionXL

JULY 12, 2017

Zappos flipped this idea on its head a while back, training its customer support employees to go above and beyond expectations (and therefore, gaining a Guinness World Record for the longest support phone call ). First, it’s impossible to find answers to common questions like return policies.

eCommerce 95

eCommerce Mobile Conversion Design 95