How many times have you asked a startup how they’re doing, just to hear “Doing great, killin’ it!”?
Nobody likes to cut an email subscriber loose, but when someone wants to go…you gotta let ‘em go. But it doesn’t mean the customer relationship is over. Some email defectors may simply just want to reduce their inbox clutter. A common tactic is to ask if the customer wishes to reduce the frequency of your […]
There is no sure-fire way to prevent failure, but one can always fail smarter. Entrepreneurs fail smarter by understanding the basics of their term sheet, understanding how much capital is needed, and having an exit plan. Term sheets. In the exhilaration of securing capital, many first-time entrepreneurs fail to read, and understand, the language around liquidation. […]
“Participating” preferred stock increases the returns to investors on a sale of the company. If the liquidation preference is non-participating, it means that it is capped at the “up front” amount, so the investors holding Preferred Stock have “down side” protection in a distressed sale of the corporation. The “up side” of owning the preferred […]
You are probably all familiar with the term “risk/reward.” The greater the risk, the greater the potential reward. In today’s crazy markets, the “risk free” rate on US Treasuries and German Bonds has been zero and even gone negative (that’s right, investors pay the US Treasury for its promise to repay the debt). When looking at the risk profile of different […]
In the excitement of setting up a new business, many entrepreneurs overlook one of the most vital details – their exit strategy. When you’re no longer interested or capable of running the business yourself, or if the business has moved so rapidly that you can no longer provide the best value to your shareholders […]