Berkonomics

FEBRUARY 20, 2020

More than ever, the banks and lenders today require personal guarantees from entrepreneurs, and even from CEO’s of angel or some VC funded businesses. Starting and running a small or growing business can be a challenge to the most confident and optimistic entrepreneur. A novel reward for the entrepreneur from the board.

Warrant 62

Warrant Liquidity Event Stock Finance 62

Women Entrepreneurs Can

NOVEMBER 19, 2022

These firms can provide various services, including financing and business advice. Investors receive a healthy return on investment when the company reaches a liquidity event. The entrepreneur needs to have a functioning business model and a working product to get seed funding. They may also provide a mentorship network.

Venture Capital 52

Venture Capital Early Stage Liquidity Event SEC 52

Berkonomics

DECEMBER 17, 2020

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. There is a rather new term for those large, individual investors who are usually former entrepreneurs made rich through sale of their previous ventures. Friends and family investors. How many angel groups are there?

Equity 62

Equity Finance Liquidity Event Angel Groups 62

View from Seed

MAY 19, 2015

Below, I’ve compiled what I’ve learned to be the seven “Founding Sins” – common mistakes which often divert entrepreneurs off the path towards success. Great ideas search for a great entrepreneur; great entrepreneurs don’t search for a great idea. Inauthenticity. It’s a full-time life. And then some.

Seed Stage 120

Seed Stage Liquidity Event Cofounder Startup 120

Up and Running

SEPTEMBER 19, 2017

Background: Adam Carlson is a serial entrepreneur who has successfully raised private capital at three different technology startups. Private equity investments are an important part of many startup business’s plans for accelerating growth or providing founders with a liquidity event. Consequently, he passed. Conclusion.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

YoungUpstarts

MARCH 11, 2015

With the daily demands of running a business along with the financial pressures and challenges inherent in early-stage companies, a business valuation may not be the first thing an entrepreneur thinks of when he awakes each morning. The following are examples of why these types of valuations can be tricky and may require outside expertise.

Valuation 100

Valuation Stock Options CPA Merger 100

Berkonomics

MARCH 9, 2017

We have years of real data to call upon: data that impacts both investors and entrepreneurs. years before a liquidity event (positive or negative.) Entrepreneurs will always start new enterprises. Angel investors will always finance many of them. Restaurant startups would not top my list.

Angel Investor 106

Angel Investor Angel Groups Liquidity Event Early Stage 106

Berkonomics

FEBRUARY 28, 2019

It’s a fact of life that a banker, lender or lessor will ask for a personal guarantee from the founder or entrepreneur most every time. To most lenders, the guarantee is still a requirement, putting the entrepreneur in a position of additional risk that is not spread among the shareholders. The short answer is “yes.”

Warrant 48

Warrant Liquidity Event Dilution Cofounder 48

The Next Web

MARCH 2, 2014

Instead, honestly analyze the company’s business plan and finances to determine whether the business needs to secure outside funding in order to achieve its objectives, and if so, how much. Should we finance with debt or equity? Entrepreneur Analysis and Opinion How-To''s' How much control are you willing to sacrifice?

Liquidity Event 139

Liquidity Event Equity Finance Stock Options 139

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Berkonomics

NOVEMBER 1, 2018

Some companies, especially those financed by angel or VC investors, have good, formal stock option plans with properly priced options set to reward all employees and managers in the event of a corporate sale. The marginal exit is most difficult, and it would be rare for an entrepreneur to willingly share with other managers.

Stock Options 192

Stock Options Stock Distribution Programming 192

Both Sides of the Table

SEPTEMBER 27, 2010

These days that’s not the case and it’s a great outcome for entrepreneurs and for innovation. A: Only because it’s a nicer branding for entrepreneurs. I totally agree and have been arguing this to entrepreneurs for years. I always counsel young entrepreneurs to start on the local train.

Silicon Valley 308

Silicon Valley Liquidity Event Seed Stage Finance 308

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. Many modern entrepreneurs have limited exposure to the notion of failure or layoffs because it has been so long since these things were common in the industry. By the first quarter of 2016, the late-stage financing market had changed materially.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Early Growth Financial Services

JULY 10, 2014

Too often, entrepreneurs neglect planning for and managing personal finances as they focus on building their business, lining up financing, and steering toward an eventual liquidity event. One thing that’s probably not occupying much mind space as you’re building your company is managing your personal assets.

Liquidity Event 41

Liquidity Event Management Stock Options Founder 41

David Teten

AUGUST 21, 2019

Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. These entrepreneurs want to maintain two major options: 1) To raise VC later (or not), and/or. But you also can’t run the company forever, since investors need a liquidity event. Optionality.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. The cap is irrelevant if the next equity financing is at a valuation below the cap amount.) was spun out, and the valuation was set by that financing round.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Pascal's View

AUGUST 28, 2010

billion, followed by finance, 19 deals, and healthcare, 17 deals. The biggest industry waiting is computers and electronics with 23 deals seeking to raise as much as $4.8 Private-equity and venture capital firms have been hard hit too.

Venture Capital 56

Venture Capital America Initial Public Offering IPO 56

Seeing Both Sides

SEPTEMBER 15, 2015

Decades ago, the thesis of Yossi Vardi , a prolific technology entrepreneur who has invested in 75 Israeli startups, was that Israeli entrepreneurs should seek quick exit opportunities through global corporations interested in buying a window into Israeli talent and technology. We think so. Today, this thesis is less relevant.

Israel 20

Israel Cofounder Technical Review United States 20

The Next Web

SEPTEMBER 29, 2013

Howard Marks is a serial entrepreneur and Managing Director of LA tech accelerator StartEngine. It should never be the financing event that dictates whether to shift or not. They argue that as an entrepreneur you’re always being chased by competitors and want to be a first mover. Money comes with strings attached.

Metrics 136

Metrics Cofounder Cram Down Liquidity Event 136

A Crowded Space

AUGUST 26, 2013

Let’s look more broadly at later-stage equity financing. I’ve never met a good entrepreneur that was excited about spending time on fundraising. Equity crowd-funding as a broad asset class is similar to VC in that it seeks to take a stake in early stage startups and hope for big liquidity events down the road. Conclusion.

Later Stage 87

Later Stage Equity Liquidity Event Vertical 87

Up and Running

DECEMBER 6, 2010

Lately I see a lot of people assuming it refers to the original entrepreneurs who started the company. No, came the answer, we don’t want entrepreneurs who start a business thinking about how they’ll exit. It’s about early-stage investors getting a return, not about entrepreneurs leaving the company.

Exit Strategy 71

Exit Strategy Liquidity Event Early Stage Entrepreneur 71

Berkonomics

AUGUST 27, 2015

He has written numerous books and articles for entrepreneurs and investors, and was the publisher and editor-in-chief of Venture Magazine. Mr. Lipped addresses the issue of exits, and whether entrepreneurs should take the long view or cash out quickly when the opportunity arises. By Arthur Lipper.

Intellectual Property 48

Intellectual Property Balance Sheet Stock Options Valuation 48

Berkonomics

SEPTEMBER 10, 2015

Most entrepreneurs wait too long to start thinking about their exit. I recently met with two bright entrepreneurs who are building a company in an exciting niche market riding on a long term trend. Most of the financings I read about were for $5 million to $20 million. I don’t want to be too hard on these young entrepreneurs.

Vertical 48

Vertical Finance Valuation Global 48

Berkonomics

JANUARY 20, 2010

Some businesses require very little capital and the founder is able to self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). For you who fit that description, nice work. Taking this kind of money has a number of pitfalls you should be aware of.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

Berkonomics

APRIL 3, 2014

We’ve spoken of financing a young company through friends and family, known as “inside angels.” Second, there is a rather new term for those large, individual investors who are usually former entrepreneurs made rich through sale of their previous ventures.

Equity 92

Equity Finance Liquidity Event Angel Groups 92

dondodge.typepad.com

JANUARY 15, 2011

Entrepreneurs face some pretty tough questions at a very early stage. Both the entrepreneur and the investor have much higher expectations than just "even money" on their bet. The entrepreneur expects the company to be worth many times this valuation and so does the investor. Should I take Angel or VC money?

Equity 40

Equity Employee Dilution Valuation 40

David Teten

MARCH 14, 2018

– Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. Another example is Correlation Ventures ($300M+ AUM), a VC firm which co-invests in financings with at least one other new outside VC. This requires a real financial sacrifice.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

www.vccafe.com

MARCH 11, 2013

A group of Seedcamp entrepreneurs started a startup tools wiki for that purpose, and we thought it would be well suited here. Event platforms. easy business finance software. YCombinator Series AA Equity Financing Documents. List of Angel/SuperAngel Investors for entrepreneurs. Walker Law:Â Tips for Entrepreneurs.

Software Review 53

Software Review Technical Review Israel Startup 53