6/16/19 Exicate Weekly Update
Can startup executives get 10x more equity exposure? I’m trying to find out!
Hey All!
Heatwave in SF combined with virtually no AC in residential apartment buildings has made this a slower week than usual. I’m also traveling in Denmark and Sweden next week (ping me if you want to meet up!)
How you can help
We now have an FAQ!
Please review and reply to this email with additional questions, clarifications, requests, etc. Or you can leave comments on the FAQ itself.
I would greatly appreciate it!
Last Week’s Progress
See previous update for context.
Newsletter subscribers: 98, +19 from last week. 24% WoW growth
Follow ups on last week’s goals:
Draft template term sheet that a startup executive can present to their CEO
See the guide for negotiating allocation. Term sheet still in progress.
Meet at least 10 VP and non-founding C-level employees at Series B-F companies
Met about 4. Working on a new outreach program to boost these numbers
Add at least 30 newsletter subscribers
+19. Below goal but new outreach program is coming.
Deeper dive with counsel on open questions
Didn’t get to this.
Insights from last week
Series B-F CEOs are concerned that guaranteeing allocation in advance of a round may reduce flexibility in structuring the round and possibly risk the participation of large strategic investors
Multiple CEOs said that they had invested in previous startups where they were employees. So that is excellent precedent/validation
There are four key audiences for whom incentives have to be aligned: 1) executives 2) startup CEOs/board members 3) SPV/fund investors and 4) regulators. I’m fairly confident on solving 1 and 3. I’m working with counsel to iron out 4 and am going to speak with CEOs and VCs to figure out the right structure to handle 2.
Met a team working on the RIA/Family Office/all-in-one financial + tax planner for startup employees that has an amazing idea for a new startup employee focused lending product. Early stage but very intriguing.
This coming week
Implement new outreach program to execs, CEOs, and VCs
Figure out how to get allocation commitment from CEOs without reducing their flexibility in structuring rounds. Possibly mini intermediary rounds for just the execs at a 20%-30% markup between standard institutional rounds? This would give VCs a quick markup to show LPs while simplifying round mechanics for founders.
Deep dive w/ counsel on regulatory concerns and hypothetical fund structure
Secure 20 more email list subscribers
Interested in learning more? See the next update
Disclaimer
I'm not a professional CPA, lawyer, CFP, RIA, B/D, ERA, etc. or anything else. All content is informational only and is not intended as professional advice/counsel or an offering of any kind.