As we continue our series on Compensation, let’s look at some recent compensation trends. In general, while compensation is on the rise, the rate of increase slowed between 2005 and 2006. Founder compensation (in whatever role they play) is rising faster than non-founder compensation. There are some theories on this including (a) founders are becoming […]
Archives for May 2007
Month: May 2007
Q: Have you experienced a company which grows along nicely, but does not offer a liquidity event? In the funding agreement, there is a clause for redemption rights. Is this used so that the VC can get out of the investment? A: (Jason). Yes, we’ve experienced companies growing nicely without liquidity events. And yes, we […]
Q: When performing diligence on a new investment I will dig through management’s projections. Even though I am a finance guy I try to understand the costs associated with the software development. Probably needless to say, I have been burned by cost overruns quite a few times. The Companies burn through our cash on development […]
Will Price from Hummer Winblad has today’s great VC post up titled Decision Making and the Venture Capital Process. I’m certain that every entrepreneur that has ever raised money from a VC has experienced this phenomenon.
Q: I’m involved in a start up where we’ve made a lot of progress. We’re currently in our coding stage but there are a lot of undefined areas as far as usability and layout are concerned. A few of the team members strongly believe its necessary to get professional help from experienced designers on usability […]
Q: What is the typical and expected burn rate of the funds raised from a seed round before proceeding with the Series A round? I know this time-frame will vary from case to case, obviously, but with a typical internet start-up, is there an average or expected burn rate of the seed round funds before […]