Tag Archives: Entrepreneurship
Partially Participating Preferred: An Alternative to Participation Caps
In an earlier blog (Capping Preferred Participation: A Compromised Compromise) I argued that the usual middle ground between entrepreneur-friendly “non-participating” preferred stock and investor-friendly “participating” preferred stock – capping participation at some multiple of an investor’s base preference – is … Continue reading
Choosing Counsel for your Startup
Ok, being a lawyer in the high impact entrepreneur space myself, writing this blog (well, posting it) is a bit awkward. But having seen – not only as a lawyer but also as a serial venture-backed entrepreneur myself, as well … Continue reading
Respect the Stick
The hockey stick, that is. High impact entrepreneurs know – or learn pretty fast – that most angel and even most venture funds outside of the major venture centers take a perverse satisfaction in telling entrepreneurs that they are being … Continue reading
Angel Investing Outside of the Major Venture Centers: Special Challenges
High impact angel investing in the major venture capital centers is not without its special challenges. That said, problems like a target rich environment of experienced entrepreneurs and a plethora of alternative funding options are, as they say, pretty high … Continue reading
Thoughts on Why Good Venture Investors Turn Down Good Deals
If you know anything about venture capital investing, you probably know that most plans that come across the desks of venture capitalists (and angels, for that matter) are not fundable. That is, they are of so little merit that no … Continue reading
Understanding the Limits of Convertible Debt Seed Financing Structures
While Convertible Debt with a “kicker” of some sort (typically either in the form of warrants or a discount on the conversion price) was first used primarily as a structure for bridging companies between rounds of traditional venture capital financing, … Continue reading
Act 255 Tax Credits and …. Convertible Equity
Active angel and venture investors in Wisconsin are generally familiar with Act 255, a state law that provides a tax credit for investors in the equity of qualifying emerging technology businesses. In cases where an investment is made before a … Continue reading
Thoughts on Convertible Debt Valuation Caps
Convertible debt with an equity kicker – typically either in the form of warrant coverage or a discount on the conversion rice – is a common vehicle for seed stage financings. As people on both sides of these deals have … Continue reading
Entrepreneurs with (Bad) Attitudes
Many high impact entrepreneurs have outsized personalities. They combine a big ego with incredible creativity, drive and energy. Pretty much all of them that I have known have had at least one serious personality … quirk. That said, there are … Continue reading
The Good Angel Investor (Part 2): After the Closing
In Part 1 of this post, I focused on issues entrepreneurs and angels should think about as a seed deal comes together. Today, I want to focus on how angels can engage with entrepreneurs after the money changes hands. Foremost … Continue reading
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