Marvin Liao’s Post

As a founder, have you considered all equity choices? Your future self will thank you. Darren Bilotto and I discuss in this 5-minute video. #startups #entrepreneurship #businessowners

What types of equity do start-ups issue to founders, employees, advisors, and other providers? There are a few different choices, and understanding the differences among them is important. Justin McNaughton and I talk about just a few of those choices, and we'll be talking about more over the next few weeks.

A VC fund in America has this process. The founder comes into the office. They ask the receptionist for a slot. The receptionist would call the partner. They tell the partner how they were treated. The founders who were: - impatient - outcome attached - transactional minded - did no chit chat or banter They never got to the investment committee. Such people could never hire top folks. There are 2 lessons here: 1. The VC's online process is fiction compared to their real secret process. 2. The VC's real process almost always is the vibe and charisma of the founder

By now you've probably heard me talk (aka rant) a lot about cap tables 🤷🏽♀️ At Everywhere Ventures (The Fund), we review thousands of cap tables each year as part of our diligence process. When we see messy ones, it’s disheartening. And founders often don't know that their cap tables are messy... until it’s too late 🔎 So, we consolidated some resources into a comprehensive (okay, a bit dense) deck to help founders set up their companies for long term success 🚀🚀🚀 Check it out here: https://lnkd.in/dxemBYb2

This one is for the founders. Reviewing cap tables is a part of the due diligence process for any investor. Here is an informative how-to-clean-up-your-cap-table from Jenny Fielding herself. 🏁https://lnkd.in/env9ibkP So, what’s a cap table? A capitalization table (cap table) is a document that outlines the ownership structure of the company and the distribution of shares among shareholders. A *clean* cap table provides transparency and accuracy regarding ownership, which is helpful for attracting investors, mapping company growth, incentivizing talent, and having exit opportunities. Source: Cap Table Hygiene by Jenny Fielding

Welcome to this week's Founder's Insights. Join me as I explore sponsor co-investments and discuss why rigid demands of co-investment may not always make sense! As investors become more experienced in joint ventures or passive investments, they often ask about the sponsor's co-investment. This means they want to know how much of their own money the sponsor is putting into the deal. While it may sound simple, it can get complicated due to the varying factors and circumstances surrounding each sponsor. If you're interested in learning more about investing with us at Lone Star Capital, please feel free to reach out directly.

At Clear Mind Equity Partners, our focus revolves around four different areas: finding the right investor, the right property, the right time, and the right location. While our Founders didn't grow up in Atlanta, Georgia, it's been their cherished home for quite some time now. In fact, it's the place we are dedicated to investing in, with a vision to make it an even better place for everyone who calls it home. If you haven't had the chance to watch our company video yet, take a look to learn the key factors that make investing in Atlanta appealing, as explained by our founders below! 👇

How to raise VC money in 2024? Why good companies will always gain investment? Listen to Mark Beeston - Illuminate Financial, Devin Kohli - Outward VC , Dan Chaplin - Dawn Capital who have all done some great things throughout the years, giving solid advice and understanding the struggles that they have been through. See their journeys and get to understand what VCs look for. Link to the full interview below 👇

Hot take: the concept of a use of funds slide is severely outdated. let's talk about it In the '90s, VC looked more like private equity, focusing on well-developed companies with lots of data. Detailed fund allocation made sense then. However... the landscape has evolved significantly over the last 30 years. Today, founders are raising capital at much earlier stages, yet they cling to the outdated use of funds slide and fill it with broad generalizations and made-up numbers. This slide has become ubiquitous, but it hasn't been properly adapted by early-stage companies. So. Let's rethink this. What do early-stage investors actually need to know? Forget the superficial numbers. Focus on what truly matters to them: a clear path to significant milestones or profitability. Investors want to see that you’ll achieve one of two things with their funds as an early-stage company: 1. Reach profitability or break-even. 2. Hit specific milestones that make your narrative compelling for the next funding round. This is what keeps them interested and invested in your journey. If you're thinking of including a use of funds slide in your pitch deck, focus on one of the two things I listed above. Don't have it be a wasted slide that VCs glaze over. I went into way greater detail on this topic in this weeks newsletter. If this caught your attention, make sure to go give it a quick read. I'll leave it down below!

💰 Dropping a playbook on how to raise capital from sophisticated investors 💰 It will be broken down into 'T minus 12' steps and dripped as LI posts over the next month. An overview is in the video below. If you'd like to be alerted when the playbook is released please give this post a '❤️' Also... we just launched a new website - check it out: www.t12.ai