In this fourth and final installment of a series called A Startup Takes Flight, Jason Rowley looks at a made-up company — the Internet of Wings, a provider of drone-delivered chicken sandwiches that’s since pivoted into general food delivery — to examine “exit” options for startups.
Through the series, Jason covered a range of issues startups may face through its financial lifecycle including: the basics of SAFE notes and how they convert to equity with terms like discounts and valuation caps; how VC investors use pro rata terms to maintain their proportional ownership in a startup; and what happens when growth markers aren’t hit, and how anti-dilution protections come into play when a company raises a down round.
Read on to learn what happens when your startup embarks on a liquidity event.
- What Happens When You Sell Your Startup? (TechCrunch)
- 5 Ways to Grow and Build Trust (Entrepreneur)
- ICOs Are Raising Huge Amounts of Money for Startups. Here's How They Stack Up Against Venture Capital (Inc.)
- 3 Tools to Help Entrepreneurs Find More Success Online (Tech.Co)
- 10 Signs Your Company Is Growing Too Quickly (Business2Community)