David Teten

AUGUST 19, 2019

Though RBI will displace some traditional equity VC, its much bigger impact will be to expand the pool of capital available for early-stage entrepreneurs. . John Borchers, Co-founder and Managing Partner of Decathlon Capital, claims to be the largest revenue-based financing investor in the US. So what is Revenue Based Investing?

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Both Sides of the Table

FEBRUARY 25, 2010

A reminder that it is important for all entrepreneurs is to remember to be careful about “deal drift.” We had many term sheets (it was 1999 and we had a pulse) and we were deciding which one to take. We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

View from Seed

SEPTEMBER 4, 2018

Most of these rhyme with what we’ve said in the past, but some have also evolved to fit the changing landscape and our own convictions about what really matters for founders and their investors at the seed stage. Of the last 15 investments we’ve made, we’ve been the lead or co-lead investor over 80% of the time. .

North America 120

North America Seed Stage Early Stage Lead Investor 120

SoCal CTO

JANUARY 5, 2011

Grade A Entrepreneurs , September 5, 2010 Why Krispy Kreme failed in Australia - Start Up Blog , November 3, 2010 Mellow Johnny’s: Retail Stores as Community Hubs - IDDICTIVE.COM , July 14, 2010 Is crowdfunding an option for my business?

Silicon Valley 378

Silicon Valley Startup Term Sheet Venture Capital 378

View from Seed

FEBRUARY 23, 2021

For early stage VC ‘s, Syndication is the process of sharing investments with other potential co-investors. The classic scenario is when a VC has a signed term sheet to lead a round, but has left room open for another meaningful investor. When I started in venture, syndicating deals was fairly common.

Syndication 207

Syndication Syndicate Term Sheet Cofounder 207

Both Sides of the Table

OCTOBER 17, 2009

With open source software (LAMP stack) and cloud computing infrastructure it just wasn’t that expensive to get your company going and founders just wanted to raise less money. I told entrepreneurs that it was a bit of a Faustian bargain. If a VC term sheet comes in they begin their due diligence process.

Software Review 283

Software Review Term Sheet Due Diligence Southern California 283

View from Seed

APRIL 30, 2015

What is it, and how should founders think about it? From a company milestones perspective, entrepreneurs who take on venture debt are almost always thinking about raising that next round of capital from other institutions. At NextView, for instance, one of our more popular posts centers on atypical seed rounds to know.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Scott Edward Walker

SEPTEMBER 14, 2011

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. The Investors’ Right to Walk VC Term Sheets Are Non-Binding. VC Term Sheets Are Conditional.

Term Sheet 76

Term Sheet Due Diligence Liquidation Preference Redemption 76

View from Seed

MAY 31, 2023

For example, a 2009 study conducted by Paul Gompers and David Scharfstein, “Performance Persistence in Entrepreneurship”, found that failed founders have the same chances of success¹ as novice founders, but prior success does increase the odds of future success. I reached out to a dozen founders using the criteria of: 1.

Silicon Valley 156

Silicon Valley Cofounder Term Sheet Founder 156

Austin Startup

JULY 22, 2017

She was an African-American entrepreneur, hair care industry pioneer, philanthropist, patron of the arts, political activist and one of the 20th century’s most influential businesswomen. This is similar to something we did at Austin Ventures to encourage startups to make a donation to the Entrepreneurs Foundation of Central Texas.

Austin 54

Austin Angel Investor Startup Term Sheet 54

Both Sides of the Table

SEPTEMBER 2, 2009

If a company has reached a level of success, has been around for a few years and you believe the company has potential to break out into a much bigger company then you should let the founders take money off of the table. A friend of mine is a serial entrepreneur and is running a high-profile, early stage company in NorCal.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Hunter Walker

JANUARY 5, 2014

Managing short-term tactical outcomes with longer term relationship cultivation. Meeting new founders while collaborating, recruiting, analyzing, doing whatever it takes, to help our current founders build strong companies. Doing what excites me and gives energy. 1) Evaluate New Opportunities.

Software Review 105

Software Review Balance Sheet Cofounder Technical Review 105

Reid Hoffman

JULY 27, 2021

As I discussed last week in the Greymatter podcast with my friend and Blitzscaling co-author Chris Yeh , I believe that a knowledge of philosophy is actually a great asset for entrepreneurs. To say categorically that MBA equals “not entrepreneur” is a foolish assumption, just like saying Masters in Philosophy equals “not entrepreneur.”

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Reid Hoffman

JULY 27, 2021

As I discussed last week in the Greymatter podcast with my friend and Blitzscaling co-author Chris Yeh , I believe that a knowledge of philosophy is actually a great asset for entrepreneurs. In the essay below, I outline some of the reasons I believe that an MBA isn’t the best path for prospective entrepreneurs.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

David Teten

AUGUST 19, 2019

RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Decathlon Capital.

Revenue 60

Revenue Technical Review Software Review Equity 60

Austin Startup

JULY 22, 2021

It’s hard to describe in words the palpable energy when a room is this packed full of incredible female entrepreneurs at the Women in Tech Summit at Capital Factory. On October 4th, five technology startup finalists will pitch to a panel of advisors and judges made up of successful investors, entrepreneurs, and industry leaders.

San Antonio 107

San Antonio Dallas Houston Founder 107

reidhoffman.org

NOVEMBER 12, 2013

. × At Greylock , my partners and I are driven by one guiding mission: always help entrepreneurs. It doesn’t matter whether an entrepreneur is in our portfolio, whether we’re considering an investment, or whether we’re casually meeting for the first time. Entrepreneurs often ask me for help with their pitch decks.

Entrepreneur 111

Entrepreneur Viral Revenue Networking 111

This is going to be BIG.

SEPTEMBER 30, 2012

This is a company that, according to the article, got term sheets from half of the VCs that expressed interest in the company. Did I mention it only took the founder a month? The other entrepreneur quoted in the story is from a guy pitching a Pinterest clone. Not a bad close rate, I'd say--and a pretty great pay day.

Venture Capital 130

Venture Capital Marketing Term Sheet Software Review 130

Both Sides of the Table

SEPTEMBER 26, 2015

In fact, choosing the right partner to champion your deal can have a huge impact on whether or not you get a term sheet in the first place. I understand that and actually think it’s ok because that partner gets experience with making investments, sitting on boards, finding co-investors, managing founder relationships, etc.

Venture Capital 150

Venture Capital Detroit Early Stage Partner 150

Eric Friedman

AUGUST 18, 2021

Dan is the co-founder of Standard Treasury, a Y Combinator backed company. He is also co-founder and Managing Partner of Deciens Capital, an early stage investment fund. It is the entrepreneurs that are singing their heart out, playing the instruments, et cetera. I hope you take this as a term of endearment.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Startup Lessons Learned

MAY 31, 2019

The reality today is that capital is more available than ever and entrepreneurs have become more sophisticated, so founders are looking for more than just cash from their venture backers. You've seen how venture capital works from both sides--as an entrepreneur and a venture capitalist.

Lean 108

Lean Venture Capital Conversion IPO 108

Both Sides of the Table

AUGUST 17, 2009

This is part of my ongoing series “ Pitching a VC “ There’s a great meme developing this morning on the need to simplify funding terms and documents. The meme was kicked off by Chris Dixon with this post saying that term sheets need to be simplified and align investor / founder interests.

Founder Vesting 252

Founder Vesting Vesting Founder Term Sheet 252

Austin Startup

FEBRUARY 11, 2020

DivInc is a pre-accelerator based in Austin that bridges the gap between underrepresented entrepreneurs and the resources they need to build profitable, high-growth companies. One founder/startup will walk away with a $100,000 investment that day! Submit your application Who can apply? Application deadline is March 20.

Houston 84

Houston Dallas Term Sheet Texas 84

Austin Startup

FEBRUARY 11, 2020

DivInc is a pre-accelerator based in Austin that bridges the gap between underrepresented entrepreneurs and the resources they need to build profitable, high-growth companies. One founder/startup will walk away with a $100,000 investment that day! Submit your application Who can apply? Application deadline is March 20.

Houston 84

Houston Dallas Term Sheet Texas 84

Rob Go

SEPTEMBER 4, 2018

Most of these rhyme with what we’ve said in the past, but some have also evolved to fit the changing landscape and our own convictions about what really matters for founders and their investors at the seed stage. Of the last 15 investments we’ve made, we’ve been the lead or co-lead investor over 80% of the time. .

North America 36

North America Seed Stage Early Stage Lead Investor 36

Sophia Perl of Wisdom

NOVEMBER 9, 2010

Use the 10-5-3-1 formula for raising money: Have 10 great meetings with investors, 5 of those do detailed due diligience on your company, get 3 term sheets, and 1 transfer into your bank account! A lot of entrepreneurs attended the event as evident by business cards with “Founder&# listed.

CTO Hire 49

CTO Hire Cofounder Fractional CTO San Francisco 49

Both Sides of the Table

JUNE 5, 2015

Another problem that arises in financings these days is that after a VC submits a $2 million term sheet all of a sudden a large number of “helpful investors” pop up who were waiting for a “strong lead” and now all of a sudden a $2 million round becomes a $2.75m round. Those are the big three.

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

Up and Running

MAY 18, 2016

Below, you will find a list of books recommended by serial entrepreneur David S. Why David Rose recommends it: “It lays out in explicitly stark terms the difference between ‘small business ownership’ and ‘entrepreneurship.’ The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses.

Startup 80

Startup Venture Capital Angel Investor Lean 80

Sophia Perl of Wisdom

NOVEMBER 9, 2010

Use the 10-5-3-1 formula for raising money: Have 10 great meetings with investors, 5 of those do detailed due diligience on your company, get 3 term sheets, and 1 transfer into your bank account! A lot of entrepreneurs attended the event as evident by business cards with “Founder&# listed.

CTO Hire 40

CTO Hire Cofounder Fractional CTO San Francisco 40

Feld Thoughts

OCTOBER 28, 2016

In addition to fixing some lingering errors, lousy grammar, and poor word choices, we founder a few more places to insert Oxford commas so Amy and Ryan would be happy. There are two new forewords – one from Fred Wilson at USV (the VC perspective) and one from James Park, CEO and co-founder of Fitbit (the entrepreneur perspective).

Term Sheet 70

Term Sheet Cofounder Venture Capital Equity 70

View from Seed

MARCH 12, 2015

In a typical first meeting between a VC and team of co-founders, the investor typically ends up asking more questions than the founders. So how can entrepreneurs do research on us VCs? Here are four key areas to consider. Consult the Interwebs. Nowadays there are other options for online research too.

Term Sheet 120

Term Sheet Cofounder SEC Portfolio 120

Scott Edward Walker

APRIL 26, 2016

Quora: “If a VC backs out of a signed term sheet, should the entrepreneur spread the word?” Quora: “How can I let my cofounders go?” “sordid” post via @sama re former co-founder suing for equity [link] [lesson: execute separation and release agreement]. ” [link].

Cofounder 40

Cofounder Term Sheet Equity Revenue 40

Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). This post assumes that you have a basic understanding of Series A financing terms. Co-sale rights. Dividend preference. Voting agreement.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Agile VC

JANUARY 22, 2014

This was before we started NextView and at the time Ben was still building Zeo, the prior company he co-founded. It’s easy for a startup to pitch itself as “mobile first” just as entrepreneurs pitched “cloud” a few years ago and “web” more than a decade ago.

Term Sheet 173

Term Sheet Cofounder Mobile Cloud 173

Both Sides of the Table

NOVEMBER 18, 2012

It’s what life was like as an entrepreneur. But this is nothing like the stress of being an entrepreneur. What’s it really like being an entrepreneur? You’d imagine that every founder was getting rich. Actually, positive outcomes for founders are quite rare. I’m reminded of this feeling.

Monaco 420

Monaco Cofounder Chicago Mexico 420

David Teten

DECEMBER 3, 2019

To learn more about this space, I suggest join an online community I co-founded, PEVCTech. . Small investment firms often have interns and entrepreneurs in residence passing through, each of which is a security risk. I walk through below how progressive investors are using technology and analytics throughout all of their operations.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Both Sides of the Table

DECEMBER 14, 2010

I was recently speaking with some founders about their fund raising process. They had received a term sheet from a VC and were wondering whether to work with this firm. But what about once you have a term sheet? Focus on the companies that went through tough times – For some reason most entrepreneurs do.

Term Sheet 298

Term Sheet Venture Capital Stealth Cofounder 298