While we touched briefly on this topic in our recent blog on reading term sheets, liquidation preferences are a term that’s worth taking a second look at for early-stage investors. In fact, after a company’s valuation, liquidation preference may arguably … Continue reading
MicroVentures Blog
As Slack gears up to go public via a direct listing, we expect to get a few questions about what exactly that means, how it’s similar and different from a traditional initial public offering, and why a company may choose … Continue reading
As a couple of our portfolio companies have gone public this year, we’ve received quite a few questions about stock splits, reverse stock splits, and what they mean for our investors. In the hopes of answering a few common questions … Continue reading
Something we always recommend to startups looking to raise money on our platform is to create a campaign video for their raise. While it’s not strictly necessary, according to a recent Forbes article, Indiegogo has found that campaigns with pitch … Continue reading
As an entrepreneur seeking funding for your startup, you’ve likely seen a term sheet. If you have, then you’ll know that they hold a lot of information, much of which can be complex and overwhelming. And if you don’t have … Continue reading
In the midst of growing a company and all that entails, issues like equity dilution may seem too far off to worry about for many startup executives, something to worry about later. But when mishandled, the effects of equity dilution … Continue reading
There are two types of equity: preferred and common. You should understand the differences between the two to fully weigh the pros and cons of each. Note that there are no absolutes in private equity. Issuing stock often involves negotiated … Continue reading
Understanding Security Types in Equity Crowdfunding As equity crowdfunding has matured, the need for new security types has become apparent in recent years. To meet this need, the equity crowdfunding industry has turned to modifying existing security types to make … Continue reading
Prolific writer and Nobel Prize laureate, William Faulkner, is credited with the following quote: “I only write when inspiration strikes. Fortunately, it strikes at nine every morning.” Certainly, writing the “Next Great American Novel” is quite different from developing the … Continue reading
Used to analyze venture capital and private equity investments, internal rate of return, or IRR, is an indispensable tool in your investor toolbox. If you’re unfamiliar with IRR, understanding its basic mechanics may help you make better investment decisions long-term. … Continue reading
