Category: Private Stock

  • Best Time to Backdoor a Roth IRA

    Bears are interesting animals. Bears are known to walk slowly but can be ferocious. If you’ve ever seen the power of a bear, you’d know what I mean. A perfect example of the power of a bear is the Hollywood movie scene “The Revenant” with Leonardo DiCaprio1 playing Hugh Glass getting mauled by a bear.…

  • Unicorn Layoff & Employee 401K IRA Rollover

    The rollercoaster ride of being in a tech startup can be exhilarating. Employees all have a ticking desire to change the world with energy and buzz in the work place atmosphere. Although the ups are good, the downs have some rough turbulence on employees. Startups are like rocket ships, after a few booster engines the…

  • How to ATM a Unicorn

    This is no Aprils Fools… This is another case of unicorn slaying.  Lets see how this slay unfolds. Recently Spotify issued a $1B convertible debt from TPG, Dragoneer, and Goldman Sachs clients. We will call them the VC mob (VCM). Terms: VCM can convert the debt to equity at a 20% discount of the IPO…

  • The Unicorn Disappearing Act

    If the public markets are any sign of the future, unicorn valuations will be difficult to understand.  Public companies are an indicator of comparable private companies.  Public companies are also the most comparable to any private business when seeking valuations because they are constantly being priced during the day with various buyers and sellers.  Although…

  • The New New Startups of Silicon Valley

    Most people have heard of the term called “Pegasus” or “Unicorn” in the startup world to describe a mythical startup valuation of $10B+ or $1B+.  There is another mythical creature called the “Centaur” with valuations of $100M+ and the “Pony” with valuations of $10M+.  Although the Pegasus and Unicorn are getting all the recognition, Centaur’s…

  • SEC Investigates Pre-IPO Secondary Market

    With all these Unicorns lately, the market for private stock has been getting hot.  The SEC has alleged that NetCirq has violated federal securities laws regarding transactions involving Pre-IPO companies, swaps, and registration requirements.