Umair Haque / Bubblegeneration

ГEVOLUTIOПARY ORGANIZATIONS
CHANGE the WORLD.

HERE'S HOW to BECOME ONE.

create 
thick value.
spark
smart growth.
start with  social strategy.
ignite  awesomeness, not just innovation.
seek  buildership, not just leadership.
have deeper economics.
be a force for  good*. 
get  constructive. 
gain  wisdom.

ΛRE YOU PART OF the 20th CENTURY — OR the 21st?

Thursday, November 06, 2003

Decent piece about the problems startups might face in exiting via trade sale (ie, being acquired), even if the economy picks up.

First, accounting: most startups don't do it very well, but most acquirers value it a great deal. Second, more interesting, deal complexity: many ventures funded in the last few years incorporated all sorts of arcane liquidation preferences and other rights schemes. So anyone buying them faces steep transaction costs just in understanding what they're getting.

The article also notes something else that's veeery interesting: that there's a market failure for seed funding in the States, because of the way the risk capital market is structured.

-- umair // 5:47 PM // 0 comments

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