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Understand the role that those disruptors serve, including their value add, structure, and business models.
It's common to give ESOP to advisors for their value add, so why not investors?
Build a rapport first — ask what the investor has been like to work with, their value add, etc. — then ask for the intro.
This application might help bet more candidates in the door, but accelerators are going to have to still figure out their value add to recruit the types of founders who will make them money.
As a founder who has been struggling to find the right lead investor, when the perfect one comes along singing songs of how much they'll help you, giving them a little extra for their "value add" seems worthwhile.
In the same way that giving aggressive liquidation preferences and pro-rata rights to your early stage investors may hurt you down the line as these begin to stack up, giving ESOP to your lead investors for their "value add" can become a pain as you try to manage these expectations in downstream rounds.
Similar(54)
It is designed to counter the border adjustments our trading partners apply in their value added tax (VAT) regimes.
One of its many conclusions was that "coal-fired power plants have air pollution damages larger than their value added".
As the 2010 11 school year began, the Los Angeles Times pushed the concept a step further by conducting its own analysis and thereafter publishing lists of teachers and their "value added".
As shown in Fig. 4, non-metallic mineral wastes are not recycled as crushed stones at all if the related industries aim at maximization of their value added.
In particular, I've seen a rise in requests for ESOP shares to be allocated to lead investors for their "value added services".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com