The document summarizes Karl Sjogren's presentation on "The Fairshare Model: A Performance-Based Capital Structure for Venture-Stage Initial Public Offerings". The Fairshare Model proposes a multi-class stock structure for IPOs that provides price protection for investors similar to terms given to venture capitalists. This reduces valuation risk for public investors in high-risk venture stage companies. The model also incentivizes company employees through stock-based compensation. If widely adopted, the Fairshare Model could make public markets more accessible to average investors and help address problems like income inequality. Sjogren has been developing these ideas since the late 1990s and published a book on the concept in 2013.
Fairshare Model HWZ Swiss presentation 6.19.19Karl Sjogren
Presentation on The Fairshare Model made on June 19, 2019 in San Francisco by Karl Sjogren to a cohort of visitors from HWZ Zurich University of Applied Sciences in Business Administration.
Fairshare Model presentation for F50's SVE Demo Night @ Google Karl Sjogren
July 30, 2019 presentation by Karl Sjogren, author of the book "The Fairshare Model: A Performance-Based Capital Structure for Venture-Stage Initial Public Offerings."
Fairshare Model presentation to Mayer Brown law firm 9.10.20Karl Sjogren
Presentation on Fairshare Model to the Capital Markets group of Mayer Brown. Mayer Brown has more than 1,500 lawyers and by revenue is the 19th largest law firm in the world. Slides added to list opportunities for clients to use Fairshare Model and major legal issues to explore.
Fairshare model cannabis presentation 11.19.15Karl Sjogren
Cannabis investor webcast presentation on The Fairshare Model: a performance-based capital structure for companies that raise venture capital via a public offering
Fairshare Model HWZ Swiss presentation 6.19.19Karl Sjogren
Presentation on The Fairshare Model made on June 19, 2019 in San Francisco by Karl Sjogren to a cohort of visitors from HWZ Zurich University of Applied Sciences in Business Administration.
Fairshare Model presentation for F50's SVE Demo Night @ Google Karl Sjogren
July 30, 2019 presentation by Karl Sjogren, author of the book "The Fairshare Model: A Performance-Based Capital Structure for Venture-Stage Initial Public Offerings."
Fairshare Model presentation to Mayer Brown law firm 9.10.20Karl Sjogren
Presentation on Fairshare Model to the Capital Markets group of Mayer Brown. Mayer Brown has more than 1,500 lawyers and by revenue is the 19th largest law firm in the world. Slides added to list opportunities for clients to use Fairshare Model and major legal issues to explore.
Fairshare model cannabis presentation 11.19.15Karl Sjogren
Cannabis investor webcast presentation on The Fairshare Model: a performance-based capital structure for companies that raise venture capital via a public offering
Entrepreneurship and Financing Options for InnovationSerdar Torun
The presentation outline is:
- Entrepreneur and Entrepreneurship in Turkey
- Financing Stages
- Financing Options (4Fs, Micro-credits, Business Angels, Corporate Venture Capital, Venture Capital, Public Capital Markets)
- Joint R&D
- Spin-Offs
Get funded Expert Advice from the People Who KnowIntelligent_ly
When it comes to startups, SVB has been around the block. Many times. They've helped countless founders and CEOs negotiate the ups and downs of startup financing.
Confused about the how to choose the right funding strategy? Don't be.
On November 12th, SVB’s Dan Allred and Smith Anderson will break it down for you. They'll introduce five of the most important and popular avenues for startup funding:
Bootstrapping
Crowdfunding
Angel Investors
Venture Capital
Debt
Part of the all day Venture Fast Track: http://www.thecapitalnetwork.org/programs/venture-fast-track/
Plan for funding: What Stage Is Your Business and What Are Your Options
Is your business an idea, in the midst of formation, or ready to raise capital? The first step to identifying what comes next is understanding the stage of your business.
Join our fundraising experts for an in-depth discussion of what options you have for funding and how to decide which ones are right for you and for your company.
Topics covered will include investment criteria, time to closing, investment range, success rates, control features, compliance requirements, and the overall costs of capital from each such source.
Experts:
- Ben Littauer – Boston Harbor Angels & Walnut Venture Associates
- Panos Panay – Sonicbids
Know Your Valuation for Equity Compensation (And Avoid the Perils of 409A)The Capital Network
If you are a CEO or a CFO of a high growth startup, it is vital to understand how to value your company correctly.
Here is a quick list of questions this lunch will help you answer:
Do you offer or are you planning to offer your employees stock options? Do you know the difference between ISOs and non-ISOs? Do you understand the general valuation concepts and approaches that the IRS has outlined, especially as they apply to early-stage companies? Did you know that if you run afoul of the 409A rules, your employees could have an unpleasant tax surprise and that some of that responsibility could revert back to you as the employer? Do you know if and when you need to engage an outside expert to assist with a valuation?
This is a limited seat lunch to teach issues of valuation for equity compensation and ask specific questions about your company.
Experts:
– Alicia Amaral, Scalar Analytics
– Scott Goodwin, Wolf & Company
"How to maximize your potential to attract US capital" by John Bautista TheFamily
By John Bautista, Partner at Orrick.
Join us IRL next time! http://meetup.com/thefamilyspecialevents
The contents of this video are intended for general information purposes only and should not be considered or construed as legal advice. The distribution of this presentation or its content is not intended to create, and receipt of it does not constitute, an attorney-client relationship. (The views set forth herein are the personal views of the presenters and do not necessarily reflect those of Orrick, Herrington & Sutcliffe.)
Startany.com. Remote Acceleration Program.
---------------------------------------------------------------
The Founder’s Guide to Early-Stage Valuation
Presented by Stephen R. Poland, co-founder 1x1 Media.
For many early-stage entrepreneurs assigning a valuation to your startup is one of the more intimidating tasks encountered during the fundraising quest. Based on the popular Founders’ Pocket Guide: Startup Valuation, this webinar provides a quick reference to all of the key topics around early-stage startup valuation and provides step-by- step examples for several valuation methods.
This webinar helps startup founders learn:
What a startup valuation is and when you need to start worrying about it.
Key terms and definitions associated with valuation, such as pre-money, post-money, and dilution.
How investors view the valuation task and what their expectations are for early-stage companies.
How the valuation fits with your target raise amount and resulting founder equity ownership.
How to do the simple math for calculating valuation percentages.
How to estimate your company valuation using several accepted methods.
Stephen R. Poland
Stephen R. Poland has worked with hundreds of startups and entrepreneurs, mentoring them on startup mechanics, funding plans, pitch decks, financial models, and due diligence documentation for the angel funding process.
Steve brings more than 20 years' experience in startups and entrepreneurship to his career. Leveraging leadership roles with the Walt Disney Company, MacMillan Publishing, and Bertelsmann, Steve co-founded startups in the digital music and on-demand media manufacturing sectors, as well an early days anti-virus product.
Along with being co-founder of 1x1 Media, Steve works as a venture growth advisor in Western North Carolina.
Session on Co-Founder conflict cases or challenges that startups with multiple co-founders face during different stages of their company ( before and after fund-raising) - How do the founders ideally plan for these, and if not planned, how does one find solutions to resolve them when they encounter such challenges.
Venture Fast Track - Company Valuation and Metrics - top down or bottom up?The Capital Network
Defending your corporate valuation to Angels & VCs is nearly impossible. In this program, we will discuss valuation methodologies, metrics, tactics, and tips for early-stage corporate valuations.
How do you figure out how much money you need, and when? We’ll look at a case study and talk P&L to help you determine the right market for your product and which funding source is most appropriate to maximize the exit for your company.
Inside The Mind Of The Venture Capitalist: An Introduction to Venture CapitalJ. Skyler Fernandes
The was the first is a series of presentations by Inside the Mind of The Venture Capitalist, presenting the basic foundations of Venture Capital and what Venture Capitalists look for in companies.
Fairshare model fintech presentation 05.28.15Karl Sjogren
The Fairshare Model is a performance-based capital structure for companies that seek to raise venture capital via a public offering. It balances and aligns the interests of investors and employees.
Presentation on Fairshare Model made by Karl Sjogren on Oct. 14, 2014 to Silicon Valley chapter of Nat'l. Asso. for Business Economics.
The Fairshare Model is a performance-based capital structure for companies that raise venture-capital via a crowdfunded IPO
Entrepreneurship and Financing Options for InnovationSerdar Torun
The presentation outline is:
- Entrepreneur and Entrepreneurship in Turkey
- Financing Stages
- Financing Options (4Fs, Micro-credits, Business Angels, Corporate Venture Capital, Venture Capital, Public Capital Markets)
- Joint R&D
- Spin-Offs
Get funded Expert Advice from the People Who KnowIntelligent_ly
When it comes to startups, SVB has been around the block. Many times. They've helped countless founders and CEOs negotiate the ups and downs of startup financing.
Confused about the how to choose the right funding strategy? Don't be.
On November 12th, SVB’s Dan Allred and Smith Anderson will break it down for you. They'll introduce five of the most important and popular avenues for startup funding:
Bootstrapping
Crowdfunding
Angel Investors
Venture Capital
Debt
Part of the all day Venture Fast Track: http://www.thecapitalnetwork.org/programs/venture-fast-track/
Plan for funding: What Stage Is Your Business and What Are Your Options
Is your business an idea, in the midst of formation, or ready to raise capital? The first step to identifying what comes next is understanding the stage of your business.
Join our fundraising experts for an in-depth discussion of what options you have for funding and how to decide which ones are right for you and for your company.
Topics covered will include investment criteria, time to closing, investment range, success rates, control features, compliance requirements, and the overall costs of capital from each such source.
Experts:
- Ben Littauer – Boston Harbor Angels & Walnut Venture Associates
- Panos Panay – Sonicbids
Know Your Valuation for Equity Compensation (And Avoid the Perils of 409A)The Capital Network
If you are a CEO or a CFO of a high growth startup, it is vital to understand how to value your company correctly.
Here is a quick list of questions this lunch will help you answer:
Do you offer or are you planning to offer your employees stock options? Do you know the difference between ISOs and non-ISOs? Do you understand the general valuation concepts and approaches that the IRS has outlined, especially as they apply to early-stage companies? Did you know that if you run afoul of the 409A rules, your employees could have an unpleasant tax surprise and that some of that responsibility could revert back to you as the employer? Do you know if and when you need to engage an outside expert to assist with a valuation?
This is a limited seat lunch to teach issues of valuation for equity compensation and ask specific questions about your company.
Experts:
– Alicia Amaral, Scalar Analytics
– Scott Goodwin, Wolf & Company
"How to maximize your potential to attract US capital" by John Bautista TheFamily
By John Bautista, Partner at Orrick.
Join us IRL next time! http://meetup.com/thefamilyspecialevents
The contents of this video are intended for general information purposes only and should not be considered or construed as legal advice. The distribution of this presentation or its content is not intended to create, and receipt of it does not constitute, an attorney-client relationship. (The views set forth herein are the personal views of the presenters and do not necessarily reflect those of Orrick, Herrington & Sutcliffe.)
Startany.com. Remote Acceleration Program.
---------------------------------------------------------------
The Founder’s Guide to Early-Stage Valuation
Presented by Stephen R. Poland, co-founder 1x1 Media.
For many early-stage entrepreneurs assigning a valuation to your startup is one of the more intimidating tasks encountered during the fundraising quest. Based on the popular Founders’ Pocket Guide: Startup Valuation, this webinar provides a quick reference to all of the key topics around early-stage startup valuation and provides step-by- step examples for several valuation methods.
This webinar helps startup founders learn:
What a startup valuation is and when you need to start worrying about it.
Key terms and definitions associated with valuation, such as pre-money, post-money, and dilution.
How investors view the valuation task and what their expectations are for early-stage companies.
How the valuation fits with your target raise amount and resulting founder equity ownership.
How to do the simple math for calculating valuation percentages.
How to estimate your company valuation using several accepted methods.
Stephen R. Poland
Stephen R. Poland has worked with hundreds of startups and entrepreneurs, mentoring them on startup mechanics, funding plans, pitch decks, financial models, and due diligence documentation for the angel funding process.
Steve brings more than 20 years' experience in startups and entrepreneurship to his career. Leveraging leadership roles with the Walt Disney Company, MacMillan Publishing, and Bertelsmann, Steve co-founded startups in the digital music and on-demand media manufacturing sectors, as well an early days anti-virus product.
Along with being co-founder of 1x1 Media, Steve works as a venture growth advisor in Western North Carolina.
Session on Co-Founder conflict cases or challenges that startups with multiple co-founders face during different stages of their company ( before and after fund-raising) - How do the founders ideally plan for these, and if not planned, how does one find solutions to resolve them when they encounter such challenges.
Venture Fast Track - Company Valuation and Metrics - top down or bottom up?The Capital Network
Defending your corporate valuation to Angels & VCs is nearly impossible. In this program, we will discuss valuation methodologies, metrics, tactics, and tips for early-stage corporate valuations.
How do you figure out how much money you need, and when? We’ll look at a case study and talk P&L to help you determine the right market for your product and which funding source is most appropriate to maximize the exit for your company.
Inside The Mind Of The Venture Capitalist: An Introduction to Venture CapitalJ. Skyler Fernandes
The was the first is a series of presentations by Inside the Mind of The Venture Capitalist, presenting the basic foundations of Venture Capital and what Venture Capitalists look for in companies.
Fairshare model fintech presentation 05.28.15Karl Sjogren
The Fairshare Model is a performance-based capital structure for companies that seek to raise venture capital via a public offering. It balances and aligns the interests of investors and employees.
Presentation on Fairshare Model made by Karl Sjogren on Oct. 14, 2014 to Silicon Valley chapter of Nat'l. Asso. for Business Economics.
The Fairshare Model is a performance-based capital structure for companies that raise venture-capital via a crowdfunded IPO
How to Split the Pie, Raise Money, and Reward Contributors (Idea To IPO)Roger Royse
What’s my startup worth? How much equity should founders have? How much equity should I give to employees and consultants? How much should I give to the venture capitalists?
Silicon Valley startup attorney Roger Royse of the Royse Law Firm discusses the basic valuation and ownership issues involved in a startup’s life, from formation to financing to exit, including how to value your company and the contributions of stakeholders and investors at each step with a particular emphasis on different models, best practices and traps to avoid.
Raising Capital: Negotiating with Potential Investors (Series: The Start-Up/S...Financial Poise
Every business needs capital (cash) to fund its activities. But not all capital is created equal. At the most macro level, a business can raise cash by selling equity or by borrowing (and these alternatives are not by any means mutually exclusive).
This webinar explains the different types of capital available to fund a startup; how to identify potential funding sources; how to evaluate competing funding proposals; and how (and when) to negotiate financing terms. In addition, this webinar will address the kinds of investors for entrepreneurs to consider for their start-ups.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/raising-capital-negotiating-with-potential-investors-2021/
Raising Capital: Negotiating with Potential InvestorsFinancial Poise
Every business needs capital (cash) to fund its activities. But not all capital is created equal. At the most macro level, a business can raise cash by selling equity or by borrowing (and these alternatives are not by any means mutually exclusive).
This webinar explains the different types of capital available to fund a startup; how to identify potential funding sources; how to evaluate competing funding proposals; and how (and when) to negotiate financing terms. In addition, this webinar will address the kinds of investors for entrepreneurs to consider for their start-ups.
Part of the webinar series: The Start-Up/Small Business Advisor 2022
See more at https://www.financialpoise.com/webinars/
From the Women Helping Women in Entrepreneurship on July 24, 2013 at MassChallenge
The Boston entrepreneurial community is home to some of the strongest and most successful women in entrepreneurship. Join the women of Golden Seeds and several local serial entrepreneurs for a discussion on sources of capital for your business. The discussion will be followed by small breakout sessions that focus on the challenges your company may be facing.
www.thecapitalnetwork.org
Are you thinking about what you need to fund your company? Where do you start? Funding is not “one size fits all”. Every company has to approach their pathway to funding with a unique approach. Join our fundraising experts for an in-depth discussion of what options you have for funding and how to decide which paths are right for you and your company. Topics covered will include investment criteria, time to closing, investment range, success rates, control features, compliance requirements and the overall costs of capital from each such source.
Jean Hammond – LearnLaunchX, LearnLaunch.org, Hub Angels, Launchpad Venture Group, Golden Seeds
Robert Bishop - Goodwin Procter
In partnership with:
Founders Workbench
To be able to distinguish among the five forms of entrepreneurial capital
To consider how to attract financing from your family and how to bootstrap a business
To identify how informal investors differ from other parts of the funding community
To differentiate between debt and equity as methods of financing
To examine commercial loans, social lending and public stock offerings as sources of capital
To understand the stages of venture investing
To study the market for venture capital and to review venture capitalists’ evaluation criteria for new ventures
To discuss the importance of evaluating venture capitalists for a ‘best fit’ selection
To discuss private placements as an opportunity for equity capital
To examine the business angel market
To describe new forms of entrepreneurial capital beyond financial capital
To be familiar with Islamic finance and micro-credit
To understand the criteria used by impact investors
To appreciate the need for raising natural capital as part of an entrepreneurial venture.
Kleos Africa Webinar - Securing Equity FinancingGlory Enyinnaya
Capital is to a business as blood is to a human being. It’s not the fundamental reason for its existence but it’s essential for survival.
To grow in 2020, you need to chart a roadmap for growth and, more often than not, investors will help you get to the next level.
However, statistics show that only 1 in 1000 businesses succeeds in securing investment capital. If you’ve been struggling for capital, and don’t know where to start, this webinar is for you.
In this webinar, Kleos Africa’s Lead Consultant and Beta Gamma Sigma’s Board member, Glory Enyinnaya, will take you through the steps of raising capital from equity investors.
Glory brings to bear her considerable technical expertise as an Accenture-trained management consultant and First Class accountant. She will also draw upon her experience as a technology entrepreneur and the Regional representative of Faster Capital, a venture capital fund in the United Arab Emirates that invests in entrepreneurial projects around the world.
2020 has just begun – will it be the year your business gets funded?
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
1. The Fairshare Model:
A Performance-Based
Capital Structure
for Venture-Stage Initial
Public Offerings
By Karl Sjogren (Published April 2019)
F50 Global Capital Summit
Paul Brest Hall, Stanford University
April 30, 2019
2. My Background
• BA and MBA (Michigan State University)
• CPA (inactive)
• Established manufacturing companies, startups and turnarounds
• >30 years as consulting CFO/Controller in SF Bay Area
• Co-founder & CEO of Fairshare, Inc.
3. Fairshare, Inc. (1996-2001)
• Formed an online community of investors interested in “Direct Public
Offerings” (IPOs sold without a broker-dealer).
• Fairshare offered:
• Education on valuation and deal structures
• Member interaction (message boards, chat rooms)
• Once we had a critical mass of members, we planned to provide free access to
companies to pitch their DPOs, if they:
• Had a legal offering
• Passed a due diligence review
• Used the Fairshare Model deal structure
• Allowed Fairshare members to invest as little as $100
• Model: a “buyers cooperative.” Revenue from membership fees and
advertising. Charge no commission and don’t hold anyone’s stock or money.
4. What Happened?
Fairshare concept was too early
• We underestimated the time and expense of dealing with
the concerns of securities regulators
• Dotcom and telecom busts undermined investor interest in
venture stage IPOs.
Accomplishments:
• 16,000 opt-in members (and many more visitors)
• 2/3rds joined as free member
• 1/3rd joined as paid member ($50 or $100)
• I learned to write about capital structures for people who
are new to them!
No offerings presented to Fairshare members.
5. 2013—I Resurrect the Idea (Partially)
• Environment had evolved over two decades:
• Entrepreneurship is “cool,” and even a college major,
• more people curious about valuations, and
• regulators more receptive to innovation (e.g., JOBS Act & Fintech).
• Plan:
• Promote Fairshare Model deal structure via a book (unregulated),
• encourage funding portals, offering platforms & BDs to implement, and
• make the Fairshare Model to capital structures, what LINUX is to computer
operating systems (i.e., an open system).
6. If the Fairshare Model is a book, what’s the story?
• Protagonist (Hero) – the Middle Class (average investors & employees)
• Antagonist (Villain) –The-Way-Things-Are Done-Now (a conventional
capital structure)
• Inspiration for the hero—Accredited investors, who use a modified
conventional capital structure to reduce valuation risk.
• Conflict—anxiety about the future; “Can the benefits of capitalism be
more fairly realized?”
• Challenges:
• Hero must recognize his latent power to shape markets by asserting his interests.
• Hero must develop new skills.
8. Vision and Goals
Vision
Average investors can invest in the IPOs of venture-stage companies…
on terms comparable to those that venture capitalists get in a private
offering.
Goals
1. Reduce valuation risk for IPO investors.
2. Create an attractive alternative to a VC round for companies
9. What is a “Venture-Stage” IPO?
An IPO for a company with these risk factors:
• Market for its products/services is uncertain
• Unproven business model
• Uncertain timeline to profitable operations
• Negative cash flow from operations
• It requires investor cash to operate
• Little or no sustainable competitive advantage
• Execution risk; team may not build value for investors
Many public companies list such risk factors in their disclosure documents.
10. A Conventional Capital Structure
Used in most IPOs & in private offerings with relatively unsophisticated investors.
Defining qualities:
• Single class of stock (All for one and one for all)
• Issuer sets value for future performance when new stock is sold.
• If I sell you half of my new company for $1.00, implicitly, we agree my future performance is worth $1.00.
My idea ($1.00) + Your money ($1.00) = Value of the company after you invest ($2.00)
or
My share (50%) + Your share (50%) = Total ownership (100%)Valuation risk
Is my idea
worth $1.00?
11. Modified Conventional Capital Structure
Used by sophisticated private investors (especially VC, private equity). Hence, it is the “VC Model.”
• “Conventional” because issuer sets a value for future performance when new stock sold.
• “Modified” because issuer provides “price protection”—deal terms that protect investors from overvaluation.
• Enabler for special terms: a multi-class capital structure (Some shareholders are “more equal” than others)
• price ratchet,
• liquidation preference,
• redemption rights, etc.
12. The Fairshare Model Applies the Idea of Price
Protection to an IPO
• Multi-class stock structure
• Deal terms
13. Put another way, the Big Idea is…
…to replicate the VC Model for investors in a public offering—one open to any investor.
15. Fairshare Model Structure
• Two classes of stock:
• Investor Stock (common stock) issued for money or delivered performance
• Performance Stock (preferred stock) for future performance
• Both vote, only Investor Stock can trade
• Performance Stock can never trade
• Based on milestones, Performance Stock converts to Investor Stock
Approval from each class required for:
• Board member election
• Change to conversion criteria
• Compensation plans involving Investor Stock
• Changes to capital structure
• Acquisition matters
16. Conversion Criteria
• Set by company, described in offering documents
• Modified by agreement of both classes of stock
• There will be variation based on:
• Industry
• Stage of development
• Geographic location
• Personalities
• Likely criteria:
• Rise in market cap (Investor Stock shares X market price)
• Developmental achievements
• Financial (sales, profit)
• If applicable—measures of social good
17. Implications for Fairshare Model Issuers
• Incentive to offer IPO investors a really low pre-money valuation
• Market capitalization likely to be a measure of performance
• Issuer has competitive advantage in recruiting and motivating employees
• Salary and benefits
• Options on Investor Stock
• Participation in Performance Stock pool
18. Incentives to Support Adoption of the Fairshare Model Employees
IPO
investor
Pre-IPO
investor
IPO investors have less valuation risk X
Valuation decoupled from voting power X X X
Employees can earn more wealth than VC would allow X
Avoid squeeze from new VC investor X X
Liquidity option X X X
Secondary market likely to bid-up Investor Stock X X X
Powerful motivation for employees to perform well X X X
IPO shares can be distributed to achieve marketing goals
that would normally require company to spend capital
X X X
19. How does the Fairshare Model story end?
• Yet to be written.
• Challenges
1. A critical mass of investor support for it must be apparent.
2. That will motivate experts in securities, tax and accounting, governance and
others in the capital eco-system to assess how to implement the Fairshare
Model.
3. Time and experience: companies that use it, must like it.
21. The Concept Gap
Hofstadter’s Law
It always takes longer than you expect, even when
you take into account Hofstadter’s Law.
Fairshare, Inc.
Fairshare Model book
22. The Fairshare Model table of contents
Foreword *
Introduction *
Section 1: Fairshare Model
Overview *
• Chap. 1: The Fairshare Model
• Chap. 2: The Big Idea and Thesis
• Chap. 3: Orientation
• Chap. 4: Fairshare Model Q&A
• Chap. 5: The Problem with a
Conventional Capital Structure
• Chap. 6: Crowdfunding and the
Fairshare Model
• Chap. 7: Target Companies for the
Fairshare Model
• Chap. 8: The Tao of the Fairshare
Model
• Chap. 9: Fairshare Model History
& the Future
Section 2: Context for the Fairshare
Model
• Chap. 10: The Macroeconomic
Context—Growth
• Chap. 11: The Macroeconomic
Context—Income Inequality
• Chap. 12: Cooperation as the New
Tool for Competition
Section 3: Valuation
• Chap. 13: Valuation Concepts
• Chap. 14: Calculating Valuation *
• Chap. 15: Evaluating Valuation
• Chap. 16: Valuation Disclosure *
* Condensed Edition
Section 4: Investor Loss
• Chap. 17: Causes of Investor Loss:
Fraud, Overpayment, and Failure
• Chap. 18: Failure
• Chap. 19: Other Objections to Public
Venture Capital
Section 5: Advanced Topics
• Chap. 20: Investor Risk in Venture-
Stage Companies
• Chap. 21: Game Theory
• Chap. 22: Blockchain and Initial Coin
Offerings
Epilogue
Appendix: Pre-Money Valuation Tables
23. Check out The Fairshare Model
• Full version (≈400 pages) is available from Amazon
• Condensed Edition (≈200 pages) will be available soon
• I post articles on LinkedIn, Medium, TalkMarkets and fairsharemodel.com
• karl@fairsharemodel.com
“An important work”
Ken Wilcox, Chairman Emeritus, Silicon Valley Bank
“Pay-for-performance might sound like it’s just too far out...this book
shows how it can be relevant”
Gordon Feller, Board Member of four VC-funded tech start-ups
“Why not reimagine the relationship between
investors and company employees to be one that is
fairer and benefits both?”
Po-Chi Wu, Senior Partner, Futurelab Consulting
“I highly recommend [The Fairshare Model] for entrepreneurs,
practioners, academics and investors who are committed to the
common good for all.”
Gregory Wendt, Stakeholders Capital