Berkonomics

DECEMBER 17, 2020

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. These firms will continue to finance the company without VC money required, and in return keep the capital structure simple for the life of the company. The post When should you go for equity financing?

Equity 62

Equity Finance Liquidity Event Angel Groups 62

YoungUpstarts

MARCH 11, 2015

For example, a valuation is usually needed for tax purposes when a) the company issues stock options for the first time; b) the company has a “material change” in their business such as a new financing; or c) it’s been more than 12 months since the last valuation. Professionalisms business finance business valuation Janet Chase'

Valuation 100

Valuation Stock Options CPA Merger 100

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

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. By the first quarter of 2016, the late-stage financing market had changed materially. ” Go public.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Up and Running

SEPTEMBER 20, 2021

A convertible note is like a loan, but this amount can be converted into company equity later on, usually during a liquidation event, like the acquisition of the company. The popularity of convertible notes is increasing in the world of startup financing, especially in seed-stage companies. Convertible notes.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Both Sides of the Table

SEPTEMBER 27, 2010

What micro VCs need to consider is what happens when several of your companies want to grow and require VC financing? Or when the economy turns downward and they all need financing extensions? The hardest thing is deciding what the right time to allow founder liquidity is. It is such a disconnect.

Silicon Valley 308

Silicon Valley Liquidity Event Seed Stage Finance 308

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

Growthink Blog

MAY 13, 2012

And they'll want to invest if they believe your company has great potential to achieve a liquidity event, and one that enables them to earn a significant return on their investment. Criteria #1: Scalability This is the potential for your company to achieve significant annual revenues. Here they are below. read more.

Angel Investor 93

Angel Investor Exit Strategy Liquidity Event Angel Groups 93

Berkonomics

AUGUST 27, 2015

They financed their companies, to the extent possible, in a manner minimizing the cost of capital, planning for organic growth in the number of customers served and in associated revenues. Flippers financed by venture capitalists are more likely to hire executives having high level profiles and previous exit experience.

Intellectual Property 48

Intellectual Property Balance Sheet Stock Options Valuation 48

The Next Web

SEPTEMBER 29, 2013

It should never be the financing event that dictates whether to shift or not. Investors are always thinking about growth mode because that’s the path to where they want to go – liquidity event. But without figuring out all the stuff we talked about above, you can’t spend responsibly. How do you do that?

Metrics 136

Metrics Cofounder Cram Down Liquidity Event 136

Berkonomics

SEPTEMBER 10, 2015

In the previous six months, I’d read several articles in finance blogs or newsletters about yet another company that had just been financed in their specific vertical. Most of the financings I read about were for $5 million to $20 million. They knew their revenues were getting ready to grow – and possibly explode.

Vertical 48

Vertical Finance Valuation Global 48

Seeing Both Sides

SEPTEMBER 15, 2015

To answer these questions, we built a database of 112 Israeli companies founded between 1996 and 2013 that have met or exceeded $20 million in revenue. They spend more time on strategy, go-to-market, business development, and financing. What are the challenges and lessons of scaling up?

Israel 20

Israel Cofounder Technical Review United States 20

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.” VCs often invest no less than $2 million in a single deal, finding it difficult to put less money to work and still spend time on boards and coaching entrepreneurs to a successful liquidity event. Raising money'

Equity 92

Equity Finance Liquidity Event Angel Groups 92

David Teten

MARCH 14, 2018

Another example is Correlation Ventures ($300M+ AUM), a VC firm which co-invests in financings with at least one other new outside VC. VC is a “get rich slow” business, because most VC Partners will not see a carry check for 5-10 years, after waiting for both liquidity events and for LPs to be paid first.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

dondodge.typepad.com

JANUARY 15, 2011

It isnt always possible to have a competitive bidding situation at each financing round so here are some guidelines for funding sources and percentages. Friends & Family can usually raise between $30K and $300K and usually take an interest bearing note that is convertible into stock at the next financing. 5% Managers -.25%

Equity 40

Equity Employee Dilution Valuation 40