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Amount of Startup Equity Depends on Contribution

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. The easy answer of splitting it equally among all co-founders, since there is minimal value at that point, is usually the worst possible answer, and often results in a later startup failure due to an […]
Martin Zwilling
Martin Zwilling , Founder and CEO , Startup Professionals
16 Apr 2012

When Good Legal Advice Is Worth $10 Million An Hour

One of the highest profile liquidity events to date in 2012 is Facebook’s announced deal to acquire Instagram for $1 billion.  The popular mobile photo-sharing service should fit well into Facebook’s growth strategy as a soon-to-be-public company, but its eye-popping valuation — more than that of the New York Times, for those keeping score at home — is made more extraordinary by […]
Antone Johnson
Antone Johnson , Founder and CEO , Bottom Line Law Group
12 Apr 2012

2011 Halo Report :: US Angel Group Activity

At the Angel Capital Association (ACA) Summit in Austin in March, the Angel Resource Institute reported on angel group activity in 2001 in the first annual Halo Report.  I found some of the results quite interesting.  For example: The median round of investment by group was about $700,000 but less than $300,000 was invested by the local group leading […]
Bill Payne
Bill Payne , Angel Investor , Frontier Angel Fund
10 Apr 2012

5 Traits Investors Look for in Entrepreneurs

What do investors look for in an entrepreneur? This month I’ve been reviewing submissions for my local angel group. I found this excellent list of 14 Ways to be a Great Startup CEO, posted at OnStartups by Jason Baptiste. And that reminded me of my own list, 10 Traits of Successful Entrepreneurs, which I posted a few years […]
Tim Berry
Tim Berry , Founder , Palo Alto Software
10 Apr 2012

Forget Crowdfunding: Why JOBS Matters

Most all the talk about the JOBS bill is about crowdfunding, seeding, and the ability to advertise private placements.  In my mind, other provisions are the really big news for young companies. Those are the expansion of the size limits for “Reg A” offerings, and the newly created “regulatory on-ramp.”  Together, these have re-opened a door […]
Bob Rice
Bob Rice , MANAGING PARTNER , Tangent Capital
6 Apr 2012
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