Just checked out Carta's report on founder equity dilution—super insightful! 📊 It’s like a roadmap showing exactly where and how chunks of ownership can slip away. From investor rounds to co-founders, advisors, and employees, it's all laid out. 💼📉 #StartupLife #FounderStruggles #EquityMatters
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Attorney helping entrepreneurs launch and grow businesses and helping investors raise and deploy capital
In a good fundraising environment, Q4 is typically the most active quarter for closing rounds. Both anecdotal evidence and hard data I've come across recently indicate the fundraising environment is improving, so I'm optimistic about Q4 '24. If you are raising capital for your startup and you are fortunate enough to get a term sheet for a priced round, it is essential you understand terms so you can effectively negotiate. Most of the terms can be divided into two categories: Economic Terms and Control Terms. Economic Terms focus on how money gets distributed, especially during exits or liquidation events. This includes pre-money valuation, liquidation preferences, dividends, and anti-dilution provisions. Control Terms determine who makes decisions—covering voting rights, board structure, protective provisions, and management roles. Founders should balance these two carefully. Over-focusing on valuation without paying attention to control can leave you sidelined in future decisions about your company! For more information on terms and how to negotiate them, and some great tips from a dozen VCs, check out "A Founder's Guide to Negotiating VC Term Sheets" in the "Featured" section of my LinkedIn profile. And thanks to Carta and Peter Walker for the chart below. Follow Peter for more great data and insights. ⚖️ #StartupStrategy #FounderTips
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🌟 Exciting news for all #PrivateEquity enthusiasts! 🌟 This week's #PrivateEquity Pack is here to delve into the world of exits. 🚀 What are the latest trends in valuations and deal volume? 📈 Who is currently dominating the market - US or Europe? 🌍 And most importantly, who are the top 15 performers according to Pitch Book? 🏆 Join the conversation and stay ahead of the game by checking out our latest insights. Don't miss out on this valuable opportunity to stay informed and make informed decisions in the fast-paced world of Private Equity. 💼💰 #PitchBook #TopPerformers #NotionCapital
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Managing Partner of Brandbeat Global | Business Trailblazer | Investor & Philanthropist | Visionary Board Member | Etiquette Connoisseur | Global Ballroom Dance Champion
The Art of the Pitch: Etiquette is Key: When presenting to VC investors, it's not just about what you say, but how you say it. Proper etiquette can make the difference between a memorable pitch and a missed opportunity. From clear communication to respecting time constraints, every detail counts in making that crucial positive impression. Dive deeper into the nuances of pitch etiquette and learn how to stand out in the investor's eye. Check out our latest article for insightful tips and strategies! #startupsuccess #PitchEtiquette #VCInvesting"
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I was a 35-year-old founder. I had good mentors, but I didn’t have all the answers. New founders rarely do. It’s a learn-as-you-go process. My advice for future founders? If you don’t have all the skills… Figure out how to attract them -> Partnerships Develop them -> Study and Learn https://hubs.ly/Q02Jz7BV0 #stockmarket #assetmanagement #valueinvesting
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When a founder can be termed as 'successful'? Is it when he/she earns first revnue? Or when raises (a big amount of) fund? Or breaks even? Or when s/he could give exit to Investor? Or when s/he runs the business profitablly? Let's hear from the few iconic founders.
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The magic of being listed is still there—it’s just hidden beneath layers of complexity. By engaging directly with your investors, you can reignite that magic and make your public company experience as powerful as it should be. Explore the steps to get there: https://hubs.la/Q02NKQGX0 #investorrelations #shareholderengagement #publiccompanies #capitalmarkets
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How much equity should I give away??? 👀 Giving away too much equity too quickly, WILL DAMAGE your future potential!!! 🥵 If you get to Series A/B and you only have 20% of equity remaining, almost all VCs will think you don't have enough incentive to get the company to where it needs to be. The objective is for the founding team to drop below 50% equity after SeriesB/C 🚀 Each round you should dilute 10-20% (maximum you should go up to is 25%). .... We get Founders back-to-back VC deal-flow (Pre-Seed to SeriesB). https://www.easyintro.vc/
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Dear Founders, A handshake isn’t the deal-sealer, it used to be ,also just because you’ve signed a term sheet doesn’t mean that the VC will invest or that you can compell them to invest. A credit alert is the best way the deal is sealed in today’s market. Always remember you cannot stop fundraising just because you’ve signed a term sheet. I’ve seen investors back out of a deal trying to renegotiate terms after signing term sheets. By continuing to talk to other investors and fielding offers, you can put pressure on the investor to close the deal quickly and ensure they don’t change terms on you.
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💬 Seniority Structures: When Do They Really Make Sense? We often see investors pushing for seniority, even in Series A rounds, when the new investment is 5-10x larger than a previous seed round of less than $1M. But is the benefit really there? In these cases, the upside seems modest at best, while the downside is clear – pari passu is disrupted, especially when future rounds like Series B are made senior to all previous investments, making it less favorable for all earlier investors, including Series A. Stay tuned! We’ll be hosting a session soon to dive into seniority structures and the latest trends in liquidation preferences. #startupfunding #liquidationpreferences #senioritystructures #investorconcerns #venturecapital
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