Both Sides of the Table

SEPTEMBER 18, 2014

It’s like we need a finance 101 course for entrepreneurs. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. I really just want to champion Finance 101 to entrepreneurs. There were no metrics. So a convertible note was easier.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Up and Running

JUNE 25, 2014

Hopefully I’ll be able to add some value with some of the financing needs that your businesses may need. Then on the planned side, I know many of you work with Palo Alto and BPlans on new business plans, obviously a startup. Then we look at what the small business financing needs. Scott: I think it matters.

Small Business 89

Small Business SBA Finance Bankruptcy 89

The Startup Magazine

OCTOBER 27, 2019

It’s no secret that one of the first things you need to do to get a start-up off the ground is secure financing from investors, a bank, alternative funder, or other business. The post The Importance of Bridge Funding for StartUps appeared first on The Startup Magazine.

Institutional Investors 61

Institutional Investors Startup Security Finance 61

cdixon.org

AUGUST 3, 2012

Entrepreneurs and investors have been enamored with consumer internet startups for the last few years. Some consequences: - For consumer startups with non-transactional models (ad-based or unknown business models), you need something closer to 10 million users versus 1 million users to get Series A funded. -

Bridge Financing 86

Bridge Financing Early Stage Valuation Later Stage 86

The Startup Lawyer

FEBRUARY 4, 2011

Great news — your startup just got accepted to an incubator! But before your startup signs up and cashes that $[XX,000] check, your startup’s co-founders should sit down and evaluate the incubator’s offer. Pre-money valuations startups receive from incubators are typically low…really low.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

K9 Ventures

MARCH 23, 2011

The convertible note was really intended as an instrument for a “bridge financing” – when an equity round was imminent, and likely to occur, but the company needed some money in between. In that case, it made good sense to have a debt instrument, where the note holder then converted into equity when the financing occurred.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

www.copelandfirm.com

OCTOBER 21, 2010

Home About Fee Arrangements Location Referrals Testimonials Business Law HUB Certification Mergers & Acquisitions Startup Advice Intellectual Property Copyrights Trademarks Securities Law Debt and Bridge Financing Series A Startup Law Entity Formation Corporation LLC Series LLC RSS Founders Shares: How do you split them up?

Intellectual Property 40

Intellectual Property Founder Vesting Bridge Financing 40

ithacaVC

FEBRUARY 20, 2011

It may explain why Fund Y tries to protect itself, via deal terms, from pay to play provisions that would kick in with respect to future financings.

Bridge Financing 40

Bridge Financing IPO Pay to Play Finance 40

Startup Company Lawyer

JANUARY 11, 2010

I seem to be doing a lot of pre-Series A convertible bridge note financings these days. 50%) or warrant coverage are typically more company-favorable than a Series A financing where a valuation is set. Similarly, if the company was sold for $100M before another round of financing, the investor would receive 10%, or $10M.

Angel Investor 39

Angel Investor Valuation Bridge Financing Preferred Stock 39

venturehacks.com

OCTOBER 21, 2010

Venture Hacks Good advice for startups. Reading on, the term sheet states, “The $8 million pre-money valuation includes an option pool equal to 20% of the post-financing fully diluted capitalization.&# That does work if the company gets sold before another round of financing. You call your lawyer: “What the fuck?!&#

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68