Both Sides of the Table

SEPTEMBER 10, 2021

I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. If you’re going to play in the big leagues you need to be writing checks from a $700 million?—?$1 Are we in a bubble?” By definition?—?I’m of the fund.

Venture Capital 471

Venture Capital Writing Invest Pricing 471

SoCal CTO

MARCH 3, 2011

I'm looking for free (equity only) development, should I contact you? We can likely provide technical strategy help at little to no cost, but hard core development generally requires that you have found someone to do it for you for equity or that you have some capital available (think $50K+). Do I have to write up the overview?

CTO Hire 264

CTO Hire Startup Technical Review Development Team Review 264

Both Sides of the Table

DECEMBER 11, 2022

Starting in 2009 I began writing checks consistently, year-in and year-out. I admit that my writing style back then was a bit more carefree, provocative and opinionated. I suppose if I loved spreadsheets and valuations and benchmarking I would work in the even more lucrative world of late-stage private equity. It’s just not me.

Venture Capital 466

Venture Capital Startup Marketing Pricing 466

SoCal CTO

MARCH 3, 2011

I'm looking for free (equity only) development, should I contact you? We can likely provide technical strategy help at little to no cost, but hard core development generally requires that you have found someone to do it for you for equity or that you have some capital available (think $50K+). Do I have to write up the overview?

CTO Hire 259

CTO Hire Startup Technical Review Development Team Review 259

Both Sides of the Table

SEPTEMBER 8, 2012

The trouble is, nobody has an incentive to agree to write the first check. There is simply no reason for the first angel to write you a check until you have the whole round secure, which is why people herd cats. You can do it with equity & a price. They’re looking for “social proof.” why buy anything?

Pricing 294

Pricing Venture Capital Writing Equity 294

Both Sides of the Table

MARCH 2, 2011

I’m sitting at my computer now at 9.00pm writing this – which is an hour earlier than I normally write (there are about 8 women at my kitchen table having a book club (aka excuse to drink wine & gossip so I’m locked in another room writing. Should entrepreneurs have convertible debt or priced equity?

Email 287

Email Blogging Venture Capital Writing 287

Berkonomics

MAY 22, 2014

The sale of equity in private companies is regulated by the Securities Act of 1933, which requires that the company either register with the SEC or meet one of several exemptions (Regulation D). Bill Payne has been actively involved in angel investing since 1980, funding over 50 companies and mentoring over 100 more.

Writing 199

Writing Invest Entrepreneur Equity 199

Berkonomics

MAY 8, 2014

I am chairman of a company that, as I write this, is twelve years old and has not yet taken a dollar of outside investment. Grant writing takes skill and immense amounts of time. First, here’s a link to my recent TEDx talk, “Smiling at success; laughing at failure.”

Company 166

Company Companies Writing Education 166

SoCal CTO

MARCH 12, 2012

I promised I would write this post with some thoughts and ideas on the topic. Here are a few perspectives on the topic of finding technical cofounders: In Building a sweat equity team , Joel on Software tells us: You simply need to network. Here's an example of that kind of email. Go to user groups. Refine your elevator pitch.

CTO Hire 211

CTO Hire CTO Coach Startup Equity 211

InfoChachkie

JANUARY 6, 2014

Provisional filings are especially beneficial for startups because: You gain a year to write a thoughtful, defensible patent without delaying your filing date. Equity Pay - Some attorneys will accept a portion of their initial fees in the form of equity. The filing date is often the deciding arbiter in IP disputes.

IP 210

IP Patents Journal Equity 210

Berkonomics

JUNE 2, 2010

I discovered the power of employee feelings of ownership early in my management career, establishing an employee stock ownership plan (ESOP), once popular as incentive compensation as well as a tax write-off for corporations and even a way to slowly transfer ownership of a company from the founders to the employees.

Slides 216

Slides News Equity Writing 216

Both Sides of the Table

SEPTEMBER 29, 2013

If you know, VCs end up writing sizable checks into their own funds, which is important in better aligning interests. Therefore of course they need to be more selection when writing checks and can’t spread their bets across 75 deals. million round I might write $1.8 – 2.2 This is the same way VC firms, by the way.

Venture Capital 356

Venture Capital Invest Course Technical Review 356

Both Sides of the Table

MAY 23, 2010

a loan) that is later converted to equity at the time of the next financing. If no financing happened then this “note&# may not be converted and thus would be senior to the equity of the company in the case of a bankruptcy or asset sale. It starts as a debt instrument (e.g. He had already given things his best effort.&#.

Startup 290

Startup Funding Venture Capital Pricing 290

Berkonomics

DECEMBER 14, 2023

The argument FOR… I discovered the power of ownership early in my management career, establishing an employee stock ownership plan (ESOP), once popular as incentive compensation as well as a tax write-off for corporations and even a way to slowly transfer ownership of a company from the founders to the employees. Show everyone financials?

Slides 156

Slides News Equity Writing 156

SoCal CTO

JANUARY 5, 2011

Both Sides of the Table , July 22, 2010 An updated Digital Trends presentation - Jeff Hilimire , June 2, 2010 I do what I hate - Jessica Mah , January 7, 2010 Startup Equity Allocation - charliecrystle.com , January 11, 2010 When good investment decisions end up backing more women CEOs: Conversation with Cameron Lester at Azure Capital.

Startup 378

Startup Venture Capital Blogging CTO Coach 378

TechCrunch LA

JULY 19, 2022

Ghost itself closed on a Series A equity round of $13 million, along with $7 million in debt, in June. The company raised $5 million in equity last November from Equal Ventures and Eniac to give it $28 million in total equity and debt funding. The equity will go toward hiring more talent to join Ghost’s 25-person team.

Product 191

Product Funding Technical Review Equity 191

Both Sides of the Table

MARCH 6, 2010

The upside for entrepreneurs is the equity in their business. I’ll write about that in a couple of weeks. Writing this bl0g – This blog is a huge creative outlet for me. I get to choose what I write about. True, we’re paid better than many startup executives on an annual basis.

Venture Capital 312

Venture Capital Technical Review Startup Entrepreneur 312

InfoChachkie

JUNE 11, 2012

Facebook had to resolve expensive and time-consuming litigation related to promising early hires senior positions and substantial equity stakes. Bill Gates – “The best way to prepare [to be a programmer] is to write programs, and to study great programs that other people have written.

Tips 279

Tips Startup Education Entrepreneur 279

InfoChachkie

MAY 16, 2011

5) Allow Partners To Write Your Agreements. Thus, I will let my Big Dumb Company (BDC) partner write our agreement. Ask them to accept equity in exchange for all or a portion of their overall compensation. In Beware The Consultant , I describe how you can structure such equity-based relationships. Fallacy: Yes.

Startup 242

Startup Outsource Development Outsource Sales 242

Both Sides of the Table

MARCH 3, 2013

In many ways I think general purpose writing & thinking skills are as valuable as math skills. ” Money is not debt or equity but a “license to use their capital.” It’s not that I don’t believe in liberal arts, humanities and the like. New company in Boston with a model called “royalty capital.”

Venture Capital 403

Venture Capital Education Offshore Outsource Development 403

socalTECH

JANUARY 7, 2020

Santa Monica-based private equity investor Clearlake Capital said this morning that one of its portfolio companies, Provation Medical , has acquired MD-Reports , a provider of electronic medical record (EMR), practice management (PM), and report writing software. Financial details of the acquisition were not announced.

Report 100

Report Capital Santa Monica Writing 100

Both Sides of the Table

JANUARY 21, 2010

When to get a lawyer - If you plan to be a venture or angel backed technology company (what I mostly write about) the best time to start meeting and getting to know lawyers is long before you ever start your company. I write about some of the lessons in my post on Startup Mistakes. Many people start companies arse backwards.

Startup 318

Startup IP Southern California Entrepreneur 318

SoCal CTO

OCTOBER 5, 2010

Why Every Entrepreneur Should Write and 9 Tips To Get Started - OnStartups , September 27, 2010 "The best part of blogging is the people you will meet"- Hugh MacLeod repeating wisdom from Loic Lemeur to me at the Big Pink at 2 am in South Beach after the Future of Web Apps 2008. Why You Should Write. Why You Should Write.

Startup 191

Startup Product Technology Venture Capital 191

Both Sides of the Table

FEBRUARY 24, 2019

When an entrepreneur takes on investors who take equity (i.e. The board is where large equity investors get their representation. I really like it when independent directors write a check into the company. That way somebody who writes $25,000 gets $50,000 worth of stock plus warrants. obviously make an exception.

Startup 187

Startup Writing Venture Capital Oracle 187

Both Sides of the Table

JULY 15, 2010

I give a sneak peek at a blog post I’m writing on the topic next week. Convertible debt is a loan to the company that doesn’t typically get paid back but rather “converts&# into equity when you raise a larger round at a later date. I’m going to make this a regular part of the show since it was really fun.

Venture Capital 210

Venture Capital Seed Funding Pricing Southern California 210

Both Sides of the Table

AUGUST 14, 2017

Boards are not appointed to be founder-friendly lapdogs for the 1–3 founders who start companies and usually own the largest equity positions in the company. To be clear — most founders I’ve ever worked with have been super ethical, very conscientious, not overly greedy and take their personal responsibilities very seriously.

Startup 217

Startup Technical Review Equity Report 217

Both Sides of the Table

MAY 27, 2013

He did it yesterday, “Mark, I’m going to write a blog post following on from your VC’s aren’t dumb. He is very pleasant when he calls and writes. You may know how much to pay in cash or equity for your new VP Engineering. .” I know it sounds obvious. Trust me – most people don’t do it.

Tips 365

Tips Email Venture Capital CTO Coach 365

Both Sides of the Table

JULY 12, 2011

Chris Dixon is one of my favorite people in tech and writes one of the few blogs I read religiously. Lastly, he touched on the distrust of equity following the bubble in 2000, and that, particularly on the East Coast, people need to see good exits and good exits that reward employees.

Technical Review 281

Technical Review Venture Capital Startup Artificial Inteligence 281

Both Sides of the Table

MARCH 31, 2012

The idea that the course asks students to write public blog posts is a testament to its more modern teaching style. Sales people aren’t always motivated only by cash – especially in early-stage business you need to focus on equity because cash won’t be plentiful.

Startup 319

Startup Sales Course Competition 319

Both Sides of the Table

MARCH 11, 2010

And how do you think the next person who’s thinking about writing you a check going to feel about that sort of cavalier attitude with their money? Let’s assume that the $2 million buys 25% of your company, which is the norm in an equity financing. How does your brother-in-law feel about that? Should you take it?

Startup 319

Startup Venture Capital Capital Competition 319

Both Sides of the Table

APRIL 14, 2012

…” I’ll write soon on my views of why I believe Instagram took off as a social network and what I think comes next. You are either bought for stock or for equity. When I write quick posts and don’t have much edit time I feel I am often misunderstood or misquoted. Think about it.

Venture Capital 316

Venture Capital Pricing Social Network Acquisition 316

Both Sides of the Table

FEBRUARY 11, 2012

agreeing whether or not to top up a founder’s equity. As a result I’ve really resisted writing about negotiations. If I forget to write, “Don’t Negotiation Piecemeal” after that then remind me. ” As a VC I’m required to negotiate constantly. submitting term sheets. This is the first.

Pricing 305

Pricing Startup Examples Writing 305

Startup Professionals Musings

MARCH 22, 2020

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Loans are a safer option than equity. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. Be professional about it.

Funding 123

Funding Startup Equity Venture Capital 123

Both Sides of the Table

MAY 15, 2010

Clearly a startup should consult its lawyer before filing or not filing.But the attorneys I relied on to write this piece told me that they’ve done lots of Section 4(2) deals in the past, and would recommend it to clients who had relatively simple financing agreements (not tranched-out, not too many investors, etc.) They also avoid Reg D.

Venture Capital 285

Venture Capital Startup Advertising Redpoint 285

Startup Professionals Musings

NOVEMBER 16, 2020

As a business advisor and advocate for entrepreneurs, I find myself almost always talking and writing about change. Work-life balance is not about equity, but about escape. The person who can demonstrate that he or she can effectively manage a project can write their own ticket for success.

Startup 153

Startup Writing Entrepreneur Screening 153

Both Sides of the Table

OCTOBER 17, 2019

We not only have our Series A funds that can write $500k?—?$15 If you invest early and then pull back in the next 3 rounds your multiples on cash invested are much higher than if you keep writing checks. As I tell our LPs, “if I’m not making you slightly uncomfortable when I’m writing my first check I’m not doing my job.

Venture Capital 223

Venture Capital IP Startup Google 223

Startup Professionals Musings

OCTOBER 12, 2020

The first step toward a business with any idea is to write it down, and build a business plan around it. Sometimes these will ask for 5%-15% of your equity for their support services. It’s helpful to think of startups as proceeding through several stages, which I have defined a long time ago from a funding perspective.

Resource 171

Resource Startup Organization Incubator 171