Howard Lerman

What is cap table debt & how does it hurt startup founders? Cap tables need to reflect all current and potential shareholders (which includes investors who signed a SAFE or convertible note). Because of the complexity of vesting schedules, repurchase rights, options vs. shares, the variable nature of ownership calculations with convertible instruments, etc., the simple spreadsheets used by most founders are woefully inadequate. We dive deep into the topic of cap table debt and show why founders need to stop using spreadsheets to track your startup cap table in our webinar on "Best Practices with Founder Equity and Cap Tables". You can watch a replay of this webinar here: https://lnkd.in/giHWZkWS

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NFT/'web3' cleanup: DraftKings was sued under the claim that their NFTs were unregistered securities. The Judge applied the Howey test and allowed the lawsuit to go forward. DraftKings shut their NFT collection and platform down THE NEXT DAY to avoid discovery and the possible impacts. The Howey test worked. Read the full article ----- Defector: "DraftKings Abruptly Shuts Down NFT Operation, Panicking Collectors With Vast Holdings Of Digital Tokens" (Chris Thompson) (August 1, 2024) (excerpt): "DraftKings, the daily fantasy sports and sports betting company, abruptly shut down a program called Reignmakers on Tuesday. Reignmakers, which the company launched in 2021. The decision to wipe the entire program, says DraftKings, was not made lightly, but was forced "due to recent legal developments." "DraftKings has not yet specified what "recent legal developments" are troubling its now dead Reignmakers product. The company was sued in U.S. District Court in 2023 by a Reignmakers player named Justin Dufoe, who accuses the company of dealing in unregistered securities, of taking advantage of relatively unsophisticated "retail investors," and of failing to market and support Reignmakers to the degree necessary to return to its users the expected financial benefits. DraftKings filed a motion in September to dismiss Dufoe's complaint, but that motion was denied on July 2. A scheduling conference was held by the parties on July 29; Reignmakers was shut down for good on July 30. A DraftKings spokesperson contacted by Defector Wednesday declined to confirm whether the Dufoe complaint is the "recent legal development" that forced the company's hand." Reignmakers users purchased NFTs at the assorted levels with the expectation that possession of them would convey better odds of winning contests hosted on DraftKings. That was the gamification element of Reignmakers, which came along several months after DraftKings began to market and mint their NFTs. But as with all NFTs, some too-large part of the real appeal to their purchasers was the expectation, however baldly insane, that these pointless and practically useless and infinitely duplicable digital images would grow in value over time." Defector: https://lnkd.in/gsuk9tdh #web3 #scam #nft #rugpull #howeytest #ponzi #cryptocurrency #blockchain #useless

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Robinhood Explores Strategic Expansion into Sports Betting Market - Robinhood CEO Vlad Tenev has announced that the company is considering a strategic entry into the sports betting industry, aiming to diversify its product offerings. - This potential move is driven by Robinhood's interest in tapping into the rapidly growing sports betting market, which promises significant revenue opportunities. - The expansion aligns with Robinhood's broader vision of becoming a comprehensive financial and lifestyle platform, blending investment services with new digital experiences. - Robinhood plans to evaluate regulatory requirements and market dynamics carefully before making any formal entry, ensuring a strategic and compliant approach. #SportsBetting #RobinhoodExpansion #FintechInnovation Read more: [https://buff.ly/4fYuGMK

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Understanding AppLovin In the latest episode of the Mobile Dev Memo podcast, I present a long-form analysis of AppLovin's business and its significant recent growth. But understanding AppLovin the company is fundamentally predicated on understanding the market in which it operates, mobile games advertising, and the direct response digital advertising landscape more broadly. And so the podcast is structured in three parts: - Understanding direct response advertising - Understanding mobile gaming advertising - Understanding AppLovin’s growth Link below.

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So many amazing pre-revenue startups we work with struggle to raise capital because investors are looking for traction... But there are so many ways to show traction when you're pre-revenue. Here are 9 quick ones. From waitlists to social proof, there are tons of scrappy moves to make your startup look good to investors. Swipe through to explore the full list. ⬇️

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$29.96 𝗯𝗶𝗹𝗹𝗶𝗼𝗻—that's the growth projected in the MMO gaming market by 2028. But if 𝘆𝗼𝘂’𝗿𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗶𝗻 𝘁𝗵𝗲 𝗴𝗮𝗺𝗶𝗻𝗴 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆, don’t just look at the games. 𝗟𝗼𝗼𝗸 𝗮𝘁 𝘁𝗵𝗲 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 powering them as well. Let me break down where I see the biggest value creation happening: S̲e̲r̲v̲e̲r̲l̲e̲s̲s̲ ̲A̲r̲c̲h̲i̲t̲e̲c̲t̲u̲r̲e̲ 40% cost reduction in this sector is just the beginning. What excites me more is how it’s democratizing game development. This creates opportunities in DevOps and Infrastructure. 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗳𝗼𝗰𝘂𝘀: Look for startups building developer tools and middleware solutions. A̲I̲/̲M̲L̲ ̲I̲n̲t̲e̲g̲r̲a̲t̲i̲o̲n̲ Remember when game development was just about coding and graphics? Now, I'm watching a $5B+ analytics market emerge. Companies aren't just building games; they're building intelligent systems that learn and adapt. This creates new roles like AI Game Designers, ML Engineers, etc. 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗳𝗼𝗰𝘂𝘀: Companies working on predictive analytics and dynamic content generation C̲l̲o̲u̲d̲ ̲G̲a̲m̲i̲n̲g̲ The most common pitch I hear is 'Netflix for games.' But here's what most miss: It's not about content aggregation. It's about infrastructure; sifting from product to service model. The real winners will be those building the backbone of this $17B market. 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗳𝗼𝗰𝘂𝘀: Look for infrastructure providers and startups that are working with streaming tech. M̲i̲x̲e̲d̲ ̲R̲e̲a̲l̲i̲t̲y̲ ̲&̲ ̲I̲n̲f̲r̲a̲s̲t̲r̲u̲c̲t̲u̲r̲e̲ I believe that the next unicorn in gaming won't be just a game studio. It'll be a specialized game studio solving the complex infrastructure challenges of real-time, cross-platform play. 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗳𝗼𝗰𝘂𝘀: Look for startups dealing with hardware-software integration plays. What tech are you most excited about? Comment below! #GamingMarket #AI #ML #Devops ##OnlineGamingCommunity #GamingIndustryNews #VirtualGamingExperience #eSportsWorld #GamingTrends #OnlineGamingStrategy #GamingCommunity #GamingInfluencers #VirtualRealityGaming #OnlineGamingCulture #MonaMotwani

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High bandwidth Tor network. Incentivized by the Bitcoin Lightning Network. More decentralized. More Secure. Relays earn sats. Powered by Bolt12 offers. https://lnkd.in/e3eJ3JGh The inspiration behind building El Tor was to create a high bandwidth Tor network incentivized by the Bitcoin lightning network. We need a more private internet and a fast way for our Lightning nodes to communicate with each other. We also need to “Make Hidden Services Great Again”. Centrale Bank van Curaçao en Sint Maarten Curacao Fintech Association Curaçao Innovation & Technology Institute IBIS Management Associates Inc. BTC Curaçao

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Investment news: Bitmagic funded for 3,7M€ by Korea Investment Partners, Supercell, Sisu Game Ventures… and me (and a good team of other discerning investors) It’s a very cool case. Vehicle games with shooter stuff and drones etc are way cool on this. I’m sure we will see all sorts of crazy blended mongler games: like 3D chess with tanks, aircraft carrier sized space sharks with freaking lasers on their heads. Etc. Future of gaming genres like Minecraft, Roblox, Fortnite etc “creator games” look incredibly bright with Bitmagic. https://lnkd.in/dKdR7XR9

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It's a big week in VC! Check out the US companies that have raised a seed or Series A in SaaS, AI, or Ent Software. Numeric (Accounting) raised $28.0M Series A Elixia Inc (Logistics) raised $1.0M Seed CYRISMA (Cyber Security) raised $7.0M Series A ApertureData (Analytics) raised $5.25M Seed Parakeet Health (Artificial Intelligence) raised $3.0M Seed Vultron (Artificial Intelligence) raised $4.85M Seed Noetica AI (Artificial Intelligence) raised $22.0M Series A DRAWER AI (Artificial Intelligence) raised $5.0M Seed Reema Health (Health Care) raised $7.6M Series A Strella (Artificial Intelligence) raised $4.0M Seed Leadbeam (Artificial Intelligence) raised $2.03M Seed Omnivers (Data Integration) raised $1.38M Seed Paladin (Security) raised $5.2M Seed

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I had an absolute blast with Michel Gagnon and the Stun and Awe crew - THANKS again for having me... Sneak peek of the substance below: > Micro SaaS companies can be just as safe and stable as larger businesses, offering lower valuations and less competition from institutional players. > Founder-product fit is crucial, as founders solving their own problems often create useful products with great retention. > Founder burnout can be a buying signal, indicating a solid business with a founder ready to move on. > The first 90 days post-acquisition should focus on visibility, documentation, transition, and validating diligence assumptions before pursuing growth. > Building transparently and maintaining open communication with users post-acquisition helps preserve the human element and avoid the pitfall of going silent. > Simplicity equals mastery - if it takes a complex explanation to justify an acquisition, you probably don't fully understand the business. > Establishing reasonable incremental growth goals based on baseline performance (systems over goals) is more effective than setting arbitrary targets. > Fostering a culture of care and respect enables honest feedback and allows teams to move faster through a shared commitment to truth-seeking.

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Huge opportunity