Both Sides of the Table

SEPTEMBER 28, 2013

You know this isn’t likely to lead anywhere and frankly you didn’t quit your job to pursue your life dream of being an entrepreneur to sell 12 months later in an acquihire. The don’t understand VC liquidation preferences or multiple return expectations. But staff can’t make the delineation in their heads.

Startup 417

Startup Dilution San Diego Stock Options 417

Both Sides of the Table

JULY 19, 2011

Yet a critical mistake I see many entrepreneurs make is that they hand over too much control to their third-parties. On balance I usually prefer to recruit people from my network both in terms of saving costs as well as hiring people I know & trust. As an entrepreneur I have one company to sell. Recruiters.

Term Sheet 319

Term Sheet PR Liquidation Preference Stock Options 319

K9 Ventures

JUNE 5, 2015

In addition, the competition for and the cost of hiring people, especially in the San Francisco Bay Area, has gone up dramatically. The founders of these funds are entrepreneurs in their own right and every entrepreneur has an innate desire to make things grow. more traction means it takes longer. the Venture Spiral).

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Scott Edward Walker

DECEMBER 29, 2011

House Passes Crowdfunding Bill: FAQ’s For Entrepreneurs 3. How To Hire A Superstar Engineer For Your Startup 5. What Is A Liquidation Preference? What Makes A Great Entrepreneur? What’s It Like Working At A Major New York City Law Firm? How To Launch A Startup And Avoid Ending-Up In Jail 6.

Antidilution 66

Antidilution Liquidation Preference Term Sheet New York City 66

Growthink Blog

MAY 23, 2011

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. The angel then introduces the entrepreneur to his or her wealthy friends and business connections who, based on the good reputation of the referring angel, also invest. All live happily ever after.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Feld Thoughts

FEBRUARY 9, 2016

And, rather than rational and helpful thoughts for entrepreneurs, it often brings out the schadenfreude in even the most talented people. We entrepreneurs have been spinning that line for decades in every boom cycle. ” Many companies have hired ahead of their growth rate because they had the cash to do so.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

techcrunch.com

FEBRUARY 25, 2010

This is probably why investors’ case for a company to sell early f ocuses exclusively on the founder : in most early-stage acquisitions, the liquidation preferences and deal-sweeteners only work for investors and founders. Why aren’t we surprised when three months later that company can’t hire enough engineers?

Liquidation Preference 63

Liquidation Preference Founder Option Pool Acquisition 63

Up and Running

DECEMBER 30, 2015

When raising your first round of capital, there are a few common mistakes many entrepreneurs make. I made the rookie mistake of not hiring an attorney when raising our first round. ”… Click To Tweet. Not having legal counsel.

Due Diligence 84

Due Diligence Valuation Liquidation Preference Redemption 84

Spencer Fry

APRIL 17, 2017

Without raising money, 1 of 2 situations would have fallen upon us: I would have had to dig deeper into my own pockets to continue to pay the contractor as well as hire others. As a bootstrapper, you have nobody above you on the cap table (note: investors sit above you in their liquidation preference), so it’s your way or the highway.

Bootstrapping 63

Bootstrapping Cap Table Liquidation Preference Cofounder 63

Pascal's View

DECEMBER 30, 2012

While every company founder makes trade-offs in building a company, few entrepreneurs appreciate the far-reaching implications of several critical decisions they will are required to make at the outset of a startup’s evolution. Many of these issues come to the foreground once entrepreneurs have raised money from VC’s.

Cofounder 34

Cofounder Liquidation Preference Vesting Equity 34

www.mattbartus.com

DECEMBER 9, 2012

My question is, can you elaborate on the benefits you see for the entrepreneur in trying to sell this to the investors? My question is, can you elaborate on the benefits you see for the entrepreneur in trying to sell this to the investors? What questions should I ask the lawyers I am considering hiring? link] Roy Rodenstein.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

Altgate

MARCH 17, 2009

Raising Capital: 5 Reasons Convertible Debt Sucks HOT The Collapse of the VC Ecosystem & What It Will Look Like Post Recovery NEW 10 Tips On Negotiating With VCs NEW Dating…er…Fundraising Etiquette The Science & Art of Term Sheet Negotiation HOT How Liquidation Preferences Work HOT How Much Money Should I Raise?

Term Sheet 28

Term Sheet Due Diligence Liquidation Preference Dividend 28

Both Sides of the Table

MAY 13, 2013

And a few teams of super talented, educated and bright entrepreneurs make a few mill. The Aqui-hire Business. If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. (If in their 20′s. Woo the press.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

abovethecrowd.com

APRIL 20, 2016

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. Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

thestartuplawyer.com

FEBRUARY 24, 2010

Entrepreneurs often believe their startup company faces legal threats from only external sources. Even so, I believe the negative experience can end up producing a better entrepreneur if he or she applies lessons learned to current and future startups. Who must be a co founder and who can remain a hired principal?

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

Up and Running

MARCH 29, 2017

I knew I wanted to be an entrepreneur long before I could even spell entrepreneur. I’d always been an entrepreneur, so having my first taste of a full-time job was something I was both happy to do and gave me a great sense of what that “other life” would look like. See Also: What Do Venture Capital Firms Want?

Term Sheet 60

Term Sheet Venture Capital Liquidation Preference Valuation 60