Gust

JANUARY 31, 2013

Modern theories of economics and finance teach us that in a world of perfect information, the market will decide what a fair price is for any company’s stock at any point in time based on its current financial condition, results of past operations, analysts’ forecasts of future performance, industry conditions and so on.

SEC 158

SEC Prospectus United States Technical Review 158

David Teten

JANUARY 9, 2013

Aspen is looking for institutional investor and entrepreneur speakers willing to share their investing insights and personal experiences. What incentives are there to incorporate social financing into their overall investment strategy? What are the key sectors where social financing can have significant impact?

Tunisia 114

Tunisia Libya Algeria Mauritania 114

View from Seed

JUNE 7, 2016

Just to discuss a few benefits more in-depth… First and foremost, getting into a regular cadence readies the company to think and operate more professionally for later rounds of financing. At NextView, one founder we invested in last year proactively asked us, as her lone institutional investor, to start doing this.

Seed Stage 120

Seed Stage Founder Seed Capital Institutional Investors 120

VC Cafe

JUNE 9, 2010

The proposal will enable investors in startups to receive tax write-offs on investments for high-tech companies who spend at least 70% of their salaries in Israel. Today, most of the LPs for Israeli funds are foreign investors. “It is not a targeted plan designed to deal with a particular subject.

Technical Review 88

Technical Review Government Israel Technology 88

David Teten

MARCH 5, 2021

Of course, one could rebut that by saying traditional VC is all about investing in outliers: Seth Levine analyzed data from Correlation Ventures (21,000 financings from 2004-2013) and writes that “a full 65% of financings fail to return 1x capital.

Cofounder 78

Cofounder Founder Technical Cofounder Technical Review 78

David Teten

JULY 14, 2014

The most pervasive has been the expansion of passively managed portfolios, such as index funds and ETFs, which allow both retail and institutional investors access to a broad spectrum of investment opportunities at a much lower cost. Do you think “too big to fail” is “too big to exist”, as some argue?

Management 114

Management Portfolio Institutional Investors Government 114

Gust

SEPTEMBER 27, 2014

To begin with, it is important to understand some basic facts about the world of entrepreneurial finance: There are many more entrepreneurs than there are investors, with the result that only one company out of every 400 that seeks venture funding actually receives it.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

David Teten

SEPTEMBER 5, 2014

Like many established finance & media companies, GLG knows that the tech startup sector is a growing part of the economy. I’ve also presented at a range of industry conferences on how institutional investors can use professional networks for research , origination , market research , and value creation.

New York 114

New York Technical Review Networking Advisory Board 114

VC Cafe

FEBRUARY 6, 2011

My key takeaways from talking to roughly 40 institutional investors in the valley about investing to an European startup are: Traction cures all ills. If you can really demonstrate up and to the right path and consistently deliver on your promises, the funding will find you. link] is another great one to apply.

Silicon Valley 104

Silicon Valley Startup Seed Stage Delaware 104

ithacaVC

MARCH 9, 2017

The importance of the Board is why institutional investors (like VCs) often get a seat on the Board after an investment. But don’t be fooled, there is an element of control as investors want a say in critical decisions. The list goes on and on. Good corporate governance is critical at startups and other companies alike!

Seed Stage 58

Seed Stage Software Review Institutional Investors Lead Investor 58

ReadWriteStart

OCTOBER 2, 2021

Lower tax rates allow an LLC to be more flexible with finances. However, most institutional investors (venture capital groups, for instance) don’t mind this structure, and they, in fact, prefer to invest in corporations due to protections from issuing stocks.

Technical Review 78

Technical Review LLC IPO Stock 78

Startup Professionals Musings

MARCH 22, 2020

Many use a convertible loan note that may be converted into equity upon the closing of the first formal angel or VC round of financing, with a more realistic valuation. That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations.

Management 308

Management Cram Down Angel Investor Equity 308

Both Sides of the Table

SEPTEMBER 25, 2011

Institutional investors will always insist on pro-rata rights. All it says is that the VC has the right (but not obligation) to invest his/her proportional ownership in the next round of financing. In the case of a super pro-rata right the investor (let’s say in your A round) will ask for MORE than their pro-rata right.

Entrepreneur 310

Entrepreneur Dilution Finance Silicon Valley 310

Both Sides of the Table

MAY 23, 2010

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. a loan) that is later converted to equity at the time of the next financing. It starts as a debt instrument (e.g.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Startup Company Lawyer

MARCH 12, 2009

Any company that raises venture financing will need to be a C corp in order to issue preferred stock. If founders want the benefit of flow through tax treatment with respect to losses prior to an outside financing, an S corp election may make sense as long as there are no entity or non-U.S. citizen/resident stockholders.

LLC 61

LLC Stock Options Preferred Stock Stock 61

abovethecrowd.com

AUGUST 23, 2020

I would argue that any first year finance student or computer science student would naturally assume this is how traditional public offerings already work (they would be wrong). The direct listing process is much simpler, is elegant, and uses modern market-based approaches to both price discovery and allocation.

IPO 118

IPO Silicon Valley Warrant Matching 118

Startup Professionals Musings

OCTOBER 10, 2014

Many use a convertible loan note that may be converted into equity upon the closing of the first formal Angel or VC round of financing, with a more realistic valuation. That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations.

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

APRIL 17, 2013

Many use a convertible loan note that may be converted into equity upon the closing of the first formal Angel or VC round of financing, with a more realistic valuation. That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations.

Cram Down 230

Cram Down Angel Investor Equity Dividend 230

OnlyOnce

JULY 30, 2020

Institutional investors can require liquidity too, and while it’s possible to buy out shareholders or create a debt / equity financing, you might think about selling the company instead.

Cap Table 48

Cap Table Institutional Investors Startup Early Stage 48

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 7, 2012

What’s the secret to manufacturing this combination of foresight, timing, and financing? For the institutional investor, it’s a set of bets. It’s Twitter connecting the world with real-time mass mini-chat before everyone realized how tiny and fragmented our attention spans could become.

Institutional Investors 240

Institutional Investors India China Viral 240

Pascal's View

MARCH 10, 2010

Susan Mangiero , CEO of Investment Governance’s Fiduciary X , asked me the following: Question: Given recent instances of VC-backed company fraud and questions about the management team, how can institutional investors protect themselves from key person risk? Will they work 24/7 to get the job done? Share and Enjoy:

Government 28

Government Technical Review Due Diligence Institutional Investors 28

View from Seed

APRIL 30, 2019

Fairly frequently public market investors believe that a new consumer company is “the next X”. We first saw this with Twitter in 2013 when they went public and many (both retail & institutional investors) believed that company might be the “next Facebook”. Something similar happened with Snapchat in 2017 with their IPO.

IPO 180

IPO B2B B2C Institutional Investors 180

David Teten

DECEMBER 3, 2019

Excel and Google simply aren’t going to cut it if you expect to build a high quality institutional investor base.”. Beacon technology system , which automatically outbound-solicits a universe of over 10,000 institutional investors, without requiring LPs to register for an online network of funds. .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

VC Adventure

MAY 21, 2014

What this means for an AngelList company is – be completely ready for investors before giving FG Angels the green light to go live. 506(b) vs 506(c): These refer to two of the SEC rules that regulate “crowdfunding” financing.

Syndicate 93

Syndicate Syndication Technical Review Due Diligence 93

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 21, 2011

This is the key, because Q — what an institutional investor would accept — is a well-understood system. So what kind of return does an angel investor need to make on their $84,000? So if that’s the same as P, we’re done.

Equity 276

Equity Salary Hiring Institutional Investors 276

Gust

OCTOBER 26, 2011

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. The Note Purchase Agreement and Convertible Promissory Note are essential documents for any convertible note financing. Next section: Amendment.

Finance 79

Finance Term Sheet Covenant Accredited Investor 79

K9 Ventures

MARCH 23, 2011

The convertible note was really intended as an instrument for a “bridge financing” – when an equity round was imminent, and likely to occur, but the company needed some money in between. In that case, it made good sense to have a debt instrument, where the note holder then converted into equity when the financing occurred.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

David Teten

JULY 3, 2013

Empire Angels is a member-led New York City based angel group of young finance professionals which seeks to invest in and support early stage technology ventures with a focus on young, US based entrepreneurs. Members include representatives of several VCs, family offices and other institutional investors.

Angel Investor 114

Angel Investor New York Accredited Investor New York City 114

David Teten

JULY 3, 2013

Empire Angels is a member-led New York City based angel group of young finance professionals which seeks to invest in and support early stage technology ventures with a focus on young, US based entrepreneurs. Members include representatives of several VCs, family offices and other institutional investors.

Angel Investor 114

Angel Investor New York Accredited Investor New York City 114

Both Sides of the Table

OCTOBER 1, 2009

I can tell you first hand than bankers are out making road shows to gin up interest in VCs and institutional investors. VC’s are working hand-in-glove with the investment bankers to prepare for IPOs or create auction-style trade sales. There is a lot of pent-up demand. – IPO-able in any normal market.

IPO 255

IPO Investment Bankers Venture Capital Marketing 255

Startup Professionals Musings

MARCH 9, 2018

Many use a convertible loan note that may be converted into equity upon the closing of the first formal angel or VC round of financing, with a more realistic valuation. That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

ReadWriteStart

MAY 2, 2012

Getting financing for your startup is rarely easy, but if you approach the wrong investor, you can make it even harder than it has to be. How can there be a ‘wrong investor’?” Approaching the wrong investor is kind of like asking someone who’s married out on a date. Venture capitalists are institutional investors.

Angel Investor 124

Angel Investor Institutional Investors Angel Groups Flash 124

K9 Ventures

MAY 14, 2011

This in theory is very similar to the behavior of institutional investors, however, there is one big difference. Institutional investors make sizable investments in a company, so that when they do get a big hit that can make the whole fund. The cycle will continue, as it inevitably does.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

Startup Professionals Musings

NOVEMBER 11, 2015

Many use a convertible loan note that may be converted into equity upon the closing of the first formal Angel or VC round of financing, with a more realistic valuation. That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

David Teten

JANUARY 8, 2013

PEHub just posted this guest article: Can professional investors use social media? Historically, institutional investors kept their investing strategy and their activities very discreet. Investors can tap this network for executive talent, followon financings, and eventually an exit.

Private Equity 114

Private Equity Social Media Equity Media 114

Hunter Walker

JUNE 21, 2014

One question entrepreneurs sometimes don’t ask when raising seed financing is “will this investor be able to follow on in future rounds.” ” That is, assuming they have pro rata rights, will they look to maintain their ownership stake in the A Round, B Round, etc.

Institutional Investors 92

Institutional Investors Dilution Later Stage Portfolio 92

VC Adventure

APRIL 23, 2012

This includes a recent and very thorough overview of the issues by Elad Gil which I’d highly recommend reading, even if you’re already familiar with the issues around seed financing (and in particular the so called “party round” where everyone takes a piece but no one takes the lead).

Institutional Investors 93

Institutional Investors Seed Money Finance Entrepreneur 93