The importance of a startup’s name
Posted on 30. Sep, 2008 by squareroots in Formation
In February 2008 I started acquiring domain names based around the idea of this web-site. Although some were not “sexy”, most were at least tolerable. Originally, learningvc.com was to be the domain for this web-site. Luckily I learned about backordering domains, which is how I came upon learnvc.com in April 2008.
In May [...]
Liquidation Stack
Posted on 12. Sep, 2008 by squareroots in Graphical Examples
Investors refer to “down-side protection” a lot in funding startups. One way investors protect themselves is with Preferred Stock, which is dependent on the Liquidation Stack. The liquidation stack refers to the order in which shareholders are paid proceeds from a sale.
Let’s look at the example shown on the right. First, [...]
Hurdle Rate
Posted on 12. Sep, 2008 by squareroots in Venture Capital
In the Venture Capital world, IRR (Interal Rate of Return) is used by the Limited Partners to measure the performance of the VC funds. The Venture Capitalists themselves use a guideline, called the Hurdle Rate, when talking about a startups potential. If the startup has the potential to exceed the hurdle rate then they may [...]