Preferred Stock

When venture investors make an investment they buy a new class of shares that are created by the company. These shares are designed to have different rights than common shares (the shares that are initially created by the company).

Preferred Stock: Participation

The breed of preferred stock most often used by VCs is called participating preferred. The word participation refers to a specific feature of the stock: its ability to convert to common during attractive exit events.

Addressable Markets Are Based On Net Revenue

I received an insightful question from a reader today. Here’s what he asked:

“Lets say we’re comparing Kayak and Expedia, to make it simple, lets say they are both looking at exactly the same market, however Kayak doesn’t…

How To Finance Your Company: Organic vs. Investment

As the costs of building a technology company have steadily declined I have found that there is increasing debate in the web-o-sphere about whether or not companies should seek to grow their companies organically or pursue outside…

NY’s TheU: Helped Change The World

Doug Imbruce and his team at TheU.com spent the week trying to change the world.

Doug is a media savvy visionary who until this week I have only known as a great guy and an innovative entrepreneur. However, I learned something new about Doug…