startups

Subscribe to startups via RSS

Tyler Hollenbeck.jpg

CONTRIBUTED BY
Tyler Hollenbeck
tyler.hollenbeck@dlapiper.com

Although valuation is obviously the most critical variable in an exit event, the structure of the transaction can also have significant (and often surprising) effects on the consideration ultimately received by the sellers’ shareholders. Moreover, the buyer’s interests will generally be directly adverse to those of the seller with respect to deal structure. This is particularly true in deciding between an asset sale and a stock sale, where parties often adjust other elements of the deal (including valuation) in order to accommodate one side’s preferred structure. Accordingly, understanding the following three basic drivers of the asset versus stock sale question can significantly improve a founder’s negotiating position vis-à-vis potential purchasers.Continue Reading Selling your Startup: Asset vs. Stock Sale

Megan Muir.jpgCONTRIBUTED BY
Megan Muir

NY venture capitalist Fred Wilson has an interesting blog post about various approaches to employee equity being considered by some of his fund’s portfolio companies. For now, he comes out in favor of granting stock options instead of restricted stock or other forms of equity. The last few lines reveal some of his investing approach:Continue Reading Employee Equity Comp – A VC Says be Generous

The day has finally arrived that many (if not most) life sciences startups and venture-backed companies have been waiting for – the deadline for the IRS decision regarding which companies will be awarded a Qualified Therapeutic Discovery Project (”QTDP”) tax credit or grant (and how much they will receive).
Continue Reading QTDP tax credits and grants: And the winners are… [updated]

Megan Muir.jpgCONTRIBUTED BY
Megan Muir

Although the dollar amounts may be relatively small, there is increasing competition for early stage startup investments that is driving up valuations.  Paul Graham talked about this phenomenon at Y Combinator’s annual Startup School (see here for Graham’s presentation).  VCs are making some small seed investments in dollar amounts you’d typically see from angels, creating pressure on other investors to get in a deal quickly and allowing founders to push valuations higher.  Dow Jones VentureWire reporter Tomio Geron has a good summary here.

The speed…
Continue Reading Venture capitalists playing in the land of angels