View from Seed

APRIL 30, 2015

What is it, and how should founders think about it? note: We’d like to be extra clear that founders should not take on venture debt if they don’t have 100% visibility into repaying the loan, as banks that need to recoup their loan my force the company or you as the guarantor into liquidation or bankruptcy. Business model?

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

This is going to be BIG.

SEPTEMBER 30, 2012

How else can you explain this headline matching a story about a professional social network still trying to explore revenues raising $17mm on an $80mm valuation? This is a company that, according to the article, got term sheets from half of the VCs that expressed interest in the company. But second, how do you back this up?

Venture Capital 112

Venture Capital Marketing Term Sheet Software Review 112

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

Some of the finalists were generating revenues already and/or have very promising strategic partnerships lined up. 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!

CTO Hire 49

CTO Hire Cofounder Fractional CTO San Francisco 49

Sophia Perl of Wisdom

NOVEMBER 9, 2010

Some of the finalists were generating revenues already and/or have very promising strategic partnerships lined up. 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!

CTO Hire 40

CTO Hire Cofounder Fractional CTO San Francisco 40

Scott Edward Walker

APRIL 26, 2016

Quora: “How much equity should I give to a niche celebrity who wants to join my pre-revenue startup?” 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?” ” [link]. ” [link].

Cofounder 40

Cofounder Term Sheet Equity Revenue 40

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? You’d be surprised how many ex-founders and ex-CEO’s you can find this way.

Term Sheet 298

Term Sheet Venture Capital Stealth Cofounder 298

Startup Lessons Learned

AUGUST 17, 2020

They found ways to support longterm care facilities, homeless shelters, and other locations serving those most at risk, all while schools, their main source of revenue, were closed. Here's my conversation with the founders of Revolution Foods. I'm the co founder and Chief Impact Officer at Revolution Foods.

Cofounder 60

Cofounder Security Founder Entrepreneur 60

Both Sides of the Table

APRIL 14, 2012

At least for a couple of years until you’ve grown into your new valuation / made enough revenue / captured enough customers / etc. ” Getting a term sheet on the table is the second most sure way to get a potential acquirer to move faster. But I owe it to my existing investors and co-founders to listen.

Valuation 316

Valuation Balance Sheet Dilution Term Sheet 316

Steve Blank

JANUARY 4, 2010

A first order filter is whether the founders are aiming for a scalable startup. Now with customers and early revenue, it was out raising its first round of venture money. Staring at us in the board meeting were three term-sheets from brand name VC’s and an unexpected buy-out offer from Google. Go For Broke.

Hockey Stick 304

Hockey Stick Venture Capital Startup Cofounder 304

Feld Thoughts

JANUARY 9, 2017

Jud Valeski, the co-founder of Gnip, wrote a great one a few days ago. On one hand, you want revenue, and if you break/bend the rules, you can get more of it. We firmly believed that breaking/bending the rules would yield an incrementally small amount of revenue, and never actually let the business get as big as it could.

Term Sheet 70

Term Sheet Cofounder Revenue Partner 70

Spencer Fry

DECEMBER 7, 2011

One day you're on the top of the world — you've hired the person you dreamed about, you received your first term sheet, you pocketed your first revenue, etc. — Creating a private ten-person company consistently generating revenue is "not successful enough" in the eyes of most people. I was wrong. Don't do this alone.

Cofounder 78

Cofounder Startup Term Sheet IPO 78

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. Founders however are asked to take low salaries and never really get back the time they worked for free.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

The Startup Lawyer

AUGUST 22, 2011

This is something you might see in a late stage private equity financing with a company that has a history of generating revenue. Unfortunately, for some angel investors having the co-founders sit “side by side” with them is not enough protection. What a deal — for the investor. It does not belong in any early stage deal.

Angel Investor 99

Angel Investor Dividend Dilution Cofounder 99

Steve Blank

FEBRUARY 26, 2020

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Not all startups need outside investment to grow.

Cofounder 433

Cofounder Seed Stage Valuation Metrics 433

Both Sides of the Table

FEBRUARY 25, 2010

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. We ended up agreeing a term sheet for $16.5 6 weeks’ later he didn’t have other term sheets.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

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. I hope you take this as a term of endearment. Fred Ehrsam , his co-founder, is also incredible. On Sushi and VC. Everything we do.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

reidhoffman.org

NOVEMBER 12, 2013

we had no revenue. As a result, we knew that our pitch would need to steer into investors’ biggest concern: the lack of revenue. Instead, our strategy was to steer immediately into the revenue question because that was the top concern of investors in 2004. We made the mistake of listing three different revenue streams.

Entrepreneur 111

Entrepreneur Viral Revenue Networking 111

David Teten

DECEMBER 3, 2019

To learn more about this space, I suggest join an online community I co-founded, PEVCTech. . Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP. The 11 Steps of Investing in Private Companies.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Professor VC

JUNE 20, 2011

Since the iControl system chronicles all meetings, I was able to find the automatic picture snapped from my first meeting with the founders, Reza Raji and Chris Stevens on April 22, 2004. But of course, the model had us requiring only $10M equity to breakeven and to achieve $185M in revenues in 2008 (the magic Year 5 in all business plans).

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

grasshopperherder.com

SEPTEMBER 24, 2011

« Thanks but No Thanks – Things to Avoid When Recruiting Co-founders Why is Cyber Squatter a Bad Word? Some have been as co-founder, most have been as a consultant with the possibility of becoming an paid employee, “as soon as we close our funding round.” The Value of Entrepreneurship » -->.

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41

Both Sides of the Table

FEBRUARY 14, 2016

When I was an entrepreneur there was no public information about how term sheets worked or how investors thought. forward revenue for SaaS businesses when in the years before it had been less than 5x. Many founders don’t understand why inside rounds are so difficult. All of these are false.

Valuation 150

Valuation Down Round Startup Later Stage 150

Startup Professionals Musings

MARCH 5, 2023

If you or your team sees you as an idea person, your first task as an entrepreneur should be to find a co-founder who can deliver. Finding a co-founder is rarely a bad thing, since two heads are always better than one in meeting all the startup challenges. Tailor investor proposals and term-sheets.

Cofounder 389

Cofounder Startup Term Sheet Acquisition 389

www.currentlyobsessed.com

MAY 28, 2010

I have to admit, the light bulb didn’t go off for me until I was negotiating term sheets. Read Terms that Hurt (Venture Hacks). Read up on the “unwritten terms&# in term sheets having to do with exit multiples here For bootstrappers, the math is even easier: 100% of the upside goes to you and your awesome team.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

Startup Professionals Musings

JUNE 5, 2020

If you or your team sees you as an idea person, your first task as an entrepreneur should be to find a co-founder who can deliver. Finding a co-founder is rarely a bad thing, since two heads are always better than one in meeting all the startup challenges. Tailor investor proposals and term-sheets.

Entrepreneur 307

Entrepreneur Cofounder Term Sheet Acquisition 307

www.quicksprout.com

NOVEMBER 1, 2010

Although I have made a decent amount of investments, I don’t consider myself an “angel investor” because I don’t search for companies to invest in, I don’t lead financing rounds, and I don’t know how to read term sheets. I just have some problem with “Don’t account for revenue until it hits your bank account.&#.

Elevator Pitch 60

Elevator Pitch Revenue Entrepreneur SEO 60

Cracking the Code

MARCH 28, 2022

The first time I met Matan, Melio's co-founder and CEO, he told me that his mission was simple: he wanted to “help small business stay in business” by making B2B payments fast, simple and flexible. In fact the term sheet was signed the day before the world went into lockdown! And how did you find Ziv and Ilan?

B2B 62

B2B Cofounder Small Business 62

Startup Professionals Musings

MAY 15, 2016

If you or your team sees you as an idea person, your first task as an entrepreneur should be to find a co-founder who can deliver. Finding a co-founder is rarely a bad thing, since two heads are always better than one in meeting all the startup challenges. Tailor investor proposals and term-sheets.

Cofounder 120

Cofounder Term Sheet Acquisition Metrics 120

Startup Professionals Musings

MAY 9, 2015

If you or your team sees you as an idea person, your first task as an entrepreneur should be to find a co-founder who can deliver. Finding a co-founder is rarely a bad thing, since two heads are always better than one in meeting all the startup challenges. Tailor investor proposals and term-sheets.

Cofounder 120

Cofounder Startup Term Sheet Acquisition 120

mashable.com

JUNE 11, 2013

Or maybe the co-founders have a poisonous relationship that will hinder the companys growth. Check out the tips below from founders, CEOs and investors alike. Then remove half." — Jonathan Wegener , Founder, Timehop and ExitStrategy. ." — Jonathan Wegener , Founder, Timehop and ExitStrategy.

Cofounder 111

Cofounder Technical Review Startup Software Review 111