The trick of course is what is significant and that depends on your business. Before you approach a VC firm, be sure to have done a little tangible thing in your business that you can use as a leverage. If you are planning ahead, you can approach a VC firm sooner, on the understanding that you are gRead more
The trick of course is what is significant and that depends on your business. Before you approach a VC firm, be sure to have done a little tangible thing in your business that you can use as a leverage.
If you are planning ahead, you can approach a VC firm sooner, on the understanding that you are getting to know them for a future investment, and you are not ready now the VC firms will be impressed.
Basically, you can probably negotiate a bit, but it's doubtful you'd be able to go full equity over cash except at a super early stage company. This probably may work at early stage companies where cash is tight and early employees are important. For example, it's not unusual for founders to have diRead more
Basically, you can probably negotiate a bit, but it’s doubtful you’d be able to go full equity over cash except at a super early stage company. This probably may work at early stage companies where cash is tight and early employees are important. For example, it’s not unusual for founders to have different salary needs , and to work out the difference in stock.
At a later stage startup, it might not be so easy. Presumably you’d want to get the salary equivalent from the latest valuation. Unfortunately, if it’s been a while since the company has raised a round, they may believe the valuation they could raise money at to be much higher than you expect. Also, they can expect a salary to be a relatively constant expense over 4 years but presumably the value of the shares you are paid will grow dramatically over that time.
My business is just 8months old, can I approach a venture capital firm?
Sharri Briones
The trick of course is what is significant and that depends on your business. Before you approach a VC firm, be sure to have done a little tangible thing in your business that you can use as a leverage. If you are planning ahead, you can approach a VC firm sooner, on the understanding that you are gRead more
The trick of course is what is significant and that depends on your business. Before you approach a VC firm, be sure to have done a little tangible thing in your business that you can use as a leverage.
See lessIf you are planning ahead, you can approach a VC firm sooner, on the understanding that you are getting to know them for a future investment, and you are not ready now the VC firms will be impressed.
Can I ask that my company pays me in stock instead of actual money?
Sharri Briones
Basically, you can probably negotiate a bit, but it's doubtful you'd be able to go full equity over cash except at a super early stage company. This probably may work at early stage companies where cash is tight and early employees are important. For example, it's not unusual for founders to have diRead more
Basically, you can probably negotiate a bit, but it’s doubtful you’d be able to go full equity over cash except at a super early stage company. This probably may work at early stage companies where cash is tight and early employees are important. For example, it’s not unusual for founders to have different salary needs , and to work out the difference in stock.
See lessAt a later stage startup, it might not be so easy. Presumably you’d want to get the salary equivalent from the latest valuation. Unfortunately, if it’s been a while since the company has raised a round, they may believe the valuation they could raise money at to be much higher than you expect. Also, they can expect a salary to be a relatively constant expense over 4 years but presumably the value of the shares you are paid will grow dramatically over that time.