Valuing Contributions First, let’s look at valuing contributions to the startup. These can come in the form of cash, intellectual property, equipment, real estate, or past and future services to the startup.
Cash is easy to value. It is the other contributions that are hard. Real estate, off-the-shelf equipment, and other tangible property are the next easiest to value, as the founders can find the market value by having it appraised by expert valuers or by finding the market value of equivalent equipment or property.…
Let’s look at each of these in turn.
Fund Structure The most common form of business organization used by private equity funds in the United States and most other parts of the world is the limited partnership. In a limited partnership, at least one partner—called the general partner—is responsible for managing the business of the partnership, while the other partners—called limited partners—are merely investors with no responsibility for managing the business of the partnership.…
I knew the SEChad released its proposed rules in November 2013, and had read a summary of its key provisions prepared by one of the law firms I trust. I had also noted a number of articles critical of the proposed rules. I had not, however, devoted much attention to equity crowdfunding.…
Now, in spite of being invited to interview at a certain business school in Boston, and being admitted with a fairly substantial fellowship at another business school in New York, I am definitely no expert on successfully navigating the business school application process. The only people who really know why an applicant is successful are the admissions officers who make the decisions.…
This blog emerged from a period of introspection and change spanning the two years from 2012 to 2014.
On December 17, 2013, I was admitted to the MBA class of 2016 at Wharton, ending a year-long business school application process. In June, after spending three years in law school and six years as a transactional attorney specializing in private investment funds and corporate mergers and acquisitions, I left the legal profession.…
