SoCal CTO

JULY 13, 2010

" 8 Questions to Ask When Interviewing at a Startup - Instigator Blog , June 18, 2010 Job interviews are meant to be conversations. How-to learn about angel/vc term sheets - Gabriel Weinberg , June 28, 2010 I think every startup entrepreneur (and angel investor) should have a good understanding of financing term sheets.

Cofounder 175

Cofounder Technical Cofounder Term Sheet Startup 175

This is going to be BIG.

APRIL 13, 2022

Whenever I submit a term sheet, I always caveat it by saying the following: “This is the one time we’re completely misaligned. What happens sometimes is that we don’t have an honest conversation about that. Founders seem to get that. Well, on certain things, they don’t.

Founder 164

Founder Fiji CTO Hire Term Sheet 164

VC Cafe

AUGUST 11, 2022

If you agree that the top founders are likely to receive multiple term-sheets, then the importance of founder-investor fit increases. In the case of Echo3D, I didn’t wait for the term sheet to be signed to start providing value. Personal fit. Choose a partner, not just a fund. How can founders evaluate trust?

Founder 187

Founder Term Sheet Cofounder Venture Capital 187

Startup Professionals Musings

SEPTEMBER 14, 2010

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from an angel, either. Your best strategy is to bring your own term sheet to the negotiation as a starting point. Anti-dilution protection. Marty Zwilling.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Gust

DECEMBER 27, 2012

You should know every metric regarding customer acquisition, conversion and retention. This person will be critical in rounding up other investors, drafting a term sheet, and generally getting the deal done. You should know EVERYTHING about your business, product, customers and competition.

Software Review 164

Software Review Term Sheet Technical Review Angel Investor 164

View from Seed

MARCH 11, 2020

Conversely the VC is able to benchmark the maturity of your data and analytics function against other similarly staged companies as well. Having conversations with your existing investors. There is obviously going to be some disagreement here about what appropriate expectations are. Meeting with other members of your team.

Technical Review 279

Technical Review Due Diligence Term Sheet Seed Stage 279

Startup Professionals Musings

JANUARY 27, 2012

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from either. Your best strategy is to bring your own term sheet to the negotiation as a starting point. Anti-dilution protection.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Angel Investor 223

Mucker Lab

FEBRUARY 24, 2021

When meeting with founders, we often find ourselves answering questions about what to expect with our diligence process and timeline between the first conversation and a term sheet. Today, Emotive announces their $50M Series B closed just 7 months after to accelerate growth after a transformative year for eCommerce brands.

Seed Stage 135

Seed Stage Term Sheet eCommerce Technical Review 135

Both Sides of the Table

JANUARY 21, 2010

You never got around to agreeing exact equity splits but you had many conversations about it. They’ll invite you out to events in which you’ll meet their other clients, you can get to know them socially and hopefully develop a real mentorship relationship where every conversation is not on the clock. And Brad Feld.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Genuine VC

APRIL 29, 2013

Posts in the blogosphere, conversation on panels of/about VCs, etc. all talk about the best way for entrepreneurs to optimize their fundraising process with the end-goal of receiving a term sheet. It’s often spoken as if the second that magical term sheet document is in hand, the process is over.

Term Sheet 150

Term Sheet Valuation Partner Conversion 150

Gust

OCTOBER 17, 2011

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from either. Your best strategy is to bring your own term sheet to the negotiation as a starting point. Anti-dilution protection.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Angel Investor 158

Hunter Walker

APRIL 17, 2025

Were you already engaged in a sales process with multiple parties, or was it really more of an opportunistic conversation between your company and them? We ultimately signed a term sheet with a short exclusive period and finalized the transaction by July 18.

Covenant 77

Covenant Acquisition IPO Artificial Inteligence 77

Hunter Walker

JANUARY 5, 2014

Stage 1 : Either Satya or I are meeting the founders, usually solo, giving them an overview of Homebrew and learning about their startup through direct conversations, using the product (whatever stage it’s at) and doing some background on their industry (if it’s an area new to us). Satya and I use a simple three stage system.

Software Review 128

Software Review Balance Sheet Cofounder Technical Review 128

Version One Ventures

JULY 20, 2017

Needless to say, Boris and I were super excited when Mike and David received a term sheet from Bessemer. With great new traction and product market fit, the Ada team came out to SF to raise their Seed round in October 2016.

Artificial Inteligence 150

Artificial Inteligence Silicon Valley Stealth Term Sheet 150

Startup Lessons Learned

MAY 31, 2019

Having been through the company-building process myself and after a decade in VC working with thousands of companies and negotiating hundreds of term sheets, I wrote this book to help demystify the process. Why did you decide to write a manual like this, especially right now?

Lean 108

Lean Venture Capital Conversion IPO 108

Hunter Walker

AUGUST 7, 2021

Satya and I have a list in our heads of GPs who we think do this and help our founders manage those conversations accordingly. The phases of fundraising, how to get to a first term sheet, and what to do once you’ve got an initial offer is probably a blog series of its own. and include the major terms like Keith suggests.

Term Sheet 156

Term Sheet Due Diligence Reputation Early Stage 156

View from Seed

FEBRUARY 12, 2020

If you have a term sheet in hand or know for a fact that you are about to get one, you can be pretty transparent and say that you are late in the process and are looking to make a decision by X date. If you don’t have a term sheet, my general approach is to communicate that you are early in the process.

Term Sheet 364

Term Sheet Burn Rate Founder Partner 364

YoungUpstarts

OCTOBER 28, 2015

Investors typically negotiate from a term sheet, which if not handled properly can create problems that can hurt or kill the startup’s chances when they do their Series A round of funding. a SAFE or KISS) provide a much simpler transaction with less terms to negotiate. Debt or convertible securities (e.g.,

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

Hunter Walker

MAY 17, 2024

I even love leading a really meaningful performance feedback conversation. It’s more likely because the women on average get fewer term sheets overall. When a founder has fewer options, investors typically push them to make more concessions on terms. I love working with customers to support them in meeting their goals.

Cofounder 132

Cofounder Founder Technical Review Seattle 132

Scott Edward Walker

JUNE 9, 2011

Introduction This post originally appeared as part of the “ Ask the Attorney ” column I am writing for VentureBeat ; it is another installment of my ongoing series regarding venture capital term sheets. Conversion Rights What Are Conversion Rights? There are two types of conversion rights: optional and mandatory.

Term Sheet 60

Term Sheet Conversion Rights Venture Capital Liquidation Preference 60

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

The Startup Lawyer

JANUARY 10, 2011

There’s a lot of advice about (1) how to attract VCs, and (2) how to negotiate a venture capital term sheet. Both sets of advice tend to ignore the gap between an investor’s expression of investment interest and your startup’s receipt of the term sheet.

Term Sheet 64

Term Sheet Pre-Money Valuation Liquidation Preference Option Pool 64

David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. As a result, unfounded hockey-stick graphs and unicorn promises give way to financial fluency, realistic expectations, frank conversations about what a business can credibly achieve, and transparency. . Flexible VC: Compensation-based.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

MAY 13, 2018

If an investor isn’t engaging then they’re not suddenly going to get a term sheet. If we feel a mutual connection then my goal is to make your life easier by offering you a term sheet before you’re even raising and I’ll spend the time and effort trying to prove that it isn’t worth running a process.

Term Sheet 332

Term Sheet Due Diligence Campaign Sales 332

Austin Startup

JULY 22, 2017

The best way to reach me is by email, but if you don’t have my address, connect with me via: LinkedIn Twitter using @ssaustin #ATXDiversityPledge The Austin Startup Diversity and Inclusion Pledge was originally published in Austin Startups on Medium, where people are continuing the conversation by highlighting and responding to this story.

Austin 54

Austin Angel Investor Startup Term Sheet 54

The Startup Lawyer

AUGUST 24, 2010

Just like the preferred equity financing process, the convertible debt financing process can start with a term sheet, rather than a full set of financing documents. Here are terms that are typically found in a convertible note term sheet: Amount of the Offering : How much capital can the startup raise via the convertible debt offering?

Term Sheet 62

Term Sheet Pre-Money Valuation Liquidity Event Warrant 62

Life Beyond Code

SEPTEMBER 27, 2011

When we were looking to talk to investors, Sramana introduced us to multiple investors and acted as an advisor helping us to navigate complex term sheet clauses like tranche financing and liquidation preferences. He says, “1M/1M is a very helpful program, and Sramana is very well connected in the industry. Numerous lessons.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116

Both Sides of the Table

SEPTEMBER 8, 2012

You simply draft up a series seed term sheet. Another easy way to do it is the term sheet create Series Seed A-1 and Series Seed A-2. This is occasionally how convertible notes are structured at the time of conversion anyways. So we’ve reserved the first $150,000 at a $2.5 million pre-money.

Pre-Money Valuation 294

Pre-Money Valuation Finance Liquidation Preference Warrant 294

Both Sides of the Table

JANUARY 11, 2011

If they say yes you get a term sheet and once this is signed it is usually 3-6 weeks until your legal docs get signed and you’re funded. Equally likely you show your inability to listen to your team and your over dominance of conversations. If you don’t, make sure you follow up and ask for feedback.

Non-disclosure Agreement 340

Non-disclosure Agreement NDA Cofounder Term Sheet 340

Startup Company Lawyer

AUGUST 31, 2012

In fact, the form of convertible debt documents that YC recommends that their companies use has been recently revised to include a provision that forces a conversion of the debt into a pre-negotiated Series AA preferred stock upon the consent of a majority in interest of the convertible note holders. Form of Convertible Security Term Sheet.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Both Sides of the Table

DECEMBER 14, 2010

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? I’ve had to have hard conversations with entrepreneurs when things aren’t going well. I was recently speaking with some founders about their fund raising process.

Term Sheet 298

Term Sheet Venture Capital Stealth Cofounder 298

Gust

SEPTEMBER 29, 2011

For a traditional VC financing round structured as a sale of preferred stock, the best resources I can recommend are the Term Sheet Series by Brad Feld and Jason Mendelson and Startup Company Lawyer by Yokum Taku. I’ve posted a sample convertible note term sheet on my website.) There are two principal reasons.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

Austin Startup

NOVEMBER 12, 2017

Certainly there’s some preparatory questioning and analysis and some basic trust building, but you run the risk of losing a deal if you keep having conversations and are tardy in getting to a very specific ask. In that case, you are not making a specific offer; you are soliciting a terms sheet.

Term Sheet 48

Term Sheet Technical Review Due Diligence Merger 48

View from Seed

MAY 17, 2019

The venture fundraising process for founders has a certain rhythm to it, and so a lot can be read into the timing and pacing of the conversations. After a term sheet is signed, but before closing, I call the “venture limbo” period. The job of the entrepreneur is to ensure those circumstances don’t change too much in the interim.

Term Sheet 149

Term Sheet Reputation Security Conversion 149

Both Sides of the Table

MAY 21, 2018

I told him, “I know we don’t yet have a term sheet so you feel you need to listen to everybody’s request. But imagine you were expecting two term sheets imminently. I told him he shouldn’t bother and that it was likely a junior person at the firm whose job is was to find holes in the data / narrative.

Term Sheet 217

Term Sheet Later Stage Demand Email 217

Both Sides of the Table

MARCH 8, 2018

In 2017 we began inserting an “Inclusion Clause” into our term sheets because we believe that the culture one establishes at the earliest stages of one’s business will set out the course of how it will grow and develop. We believe that diverse teams produce diversity of thought and that this leads to better decisions and outcomes.

Term Sheet 284

Term Sheet Los Angeles Open Source Portfolio 284

Genuine VC

JULY 6, 2011

Even the next few successive conversations usually don’t move too much faster after that – if there’s interest, a VC partner will ping his network to gut-check his instincts as a diligence item and begin to socialize the opportunity within his firm, both of which (usually) take time.

Term Sheet 150

Term Sheet Deal Flow Venture Capital Conversion 150