Both Sides of the Table

OCTOBER 17, 2009

I told entrepreneurs that it was a bit of a Faustian bargain. But I’m no longer an entrepreneur – I’m a VC at a $200 million fund called GRP Ventures , the largest active fund in Southern California. I have spoken at length to one such entrepreneur who tells me that he hardly hears from his VC.

Software Review 283

Software Review Term Sheet Due Diligence Southern California 283

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues. and walked through each proposed term and why it is or isn’t important.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

APRIL 23, 2017

Put Serious Effort Into Your Pre-Game I find most entrepreneurs put all of their effort into creating a perfect deck and then asking existing investors which VCs to talk with but they put almost no effort into the real “pre-game” work. The best VCs follow up but then so, too, to the best entrepreneurs. That’s fantasy land.

Burn Rate 238

Burn Rate Term Sheet CTO Hire Fractional CTO 238

ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. It is essential to understand the funding structure stated in your term sheet and the advantages and disadvantages it may have for your business. Pre-Requisites of Funding. Government programs.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

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

Startup Professionals Musings

MARCH 27, 2016

Struggling entrepreneurs are often so happy to get a funding offer that they neglect the recommended reverse due diligence on the investors. Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. It’s no fun for either side.

Technical Review 120

Technical Review Due Diligence Term Sheet Offshore 120

Mucker Lab

AUGUST 27, 2014

As an entrepreneur himself, founding and operating printed circuit board factories in Taiwan, my father was debating between two places to immigrate to and build his next new venture: Los Angeles (“The Valley” aka San Fernando Valley) and Santa Clara (“Silicon Valley”).

Los Angeles 138

Los Angeles Southern California Silicon Valley Technical Review 138

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. Perhaps I need to rethink that.

Venture Capital 130

Venture Capital Marketing Term Sheet Software Review 130

Both Sides of the Table

OCTOBER 2, 2015

It was on par with DreamForce in attention to detail, networking potential, entertainment and speaker quality. The speakers get what they want (small, private networking) and the audience gets what they want – world-class speakers. If you want to network you need to plan relentlessly in advance.

Web 150

Web Las Vegas Technical Review Term Sheet 150

Hunter Walker

JANUARY 5, 2014

At this point we’re doing reference checks and providing names of other founders to the entrepreneurs so they can diligence us (in reality we’ve likely all been asking about each other along the way too). I think networking is a terrible word. ” I try to spend zero percent of my life networking.

Software Review 103

Software Review Balance Sheet Cofounder Technical Review 103

YoungUpstarts

JUNE 17, 2013

What makes an entrepreneur tick? Perhaps the better question is – what kind of leader makes the best entrepreneur? Understand a term sheet. Others entrepreneur infographic leadership startup' Here’s a look at what a founder should be able to do: Development. Write Code. Build a server. Build Links.

Advisory Board 279

Advisory Board Balance Sheet Term Sheet Entrepreneur 279

View from Seed

SEPTEMBER 4, 2018

As seed funds have raised larger and larger funds, more have developed the muscle around issuing term sheets and “leading”. When we started the firm, we were also more narrowly focused geographically due to our smaller team and network.

North America 120

North America Seed Stage Early Stage Lead Investor 120

Up and Running

JANUARY 26, 2012

Similarly, if the investment is for growth capital, as opposed to capital to keep you afloat, the circumstances and investment terms will vary. Firstly, you need to identify some potential smart investors (by ‘smart’ I mean investors who bring more to the table than just cash i.e. access to a network of contacts, distribution etc).

Term Sheet 94

Term Sheet Exit Strategy Software Review Early Stage 94

Gust

SEPTEMBER 27, 2014

To begin with, it is important to understand some basic facts about the world of entrepreneurial finance: There are many more entrepreneurs than there are investors, with the result that only one company out of every 400 that seeks venture funding actually receives it. Gust takes advantage of the cloud, and you should, too.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Startup Professionals Musings

JUNE 13, 2020

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. Angels are more likely to fund new entrepreneurs, and early-stage or seed rounds, while VCs tend to focus on entrepreneurs with a successful track record, and later stage rounds.

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314

Both Sides of the Table

MARCH 23, 2015

” He has publicly espoused building products for “non logged in users” and has benefitted greatly from his thesis of large networks of socially connected & like minded individuals. Let’s see: Twitter, Tumblr, Etsy, KickStarter … not bad, hey? But Fred got me to see a broader perspective.

Los Angeles 150

Los Angeles Silicon Valley Term Sheet Video 150

Startup Professionals Musings

AUGUST 2, 2014

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. Angels are more likely to fund new entrepreneurs, and early-stage or seed rounds, while VCs tend to focus on entrepreneurs with a successful track record, and later stage rounds.

Angel Investor 266

Angel Investor Entrepreneur Venture Capital IRR 266

Both Sides of the Table

JANUARY 31, 2011

One of the most common questions that entrepreneurs who meet me for the first time like to ask is, “Do you miss being an entrepreneur? I thought I’d talk a bit about the differences I’ve experienced between being an entrepreneur & a VC – you know, from “both sides of the table.&#. On Being an Entrepreneur.

Entrepreneur 384

Entrepreneur Startup Salary Egypt 384

Feld Thoughts

OCTOBER 15, 2013

When David Cohen and I came up with the idea for the Global Accelerator Network (GAN) in 2010, we counted roughly 100 accelerator programs around the US that were founded following the Techstars model. From that initial outreach, 16 high quality accelerator programs joined us to launch the network. Others are not.

Global 179

Global Networking United States Seed Money 179

VC Cafe

NOVEMBER 15, 2010

Fred Wilson warns that it is starting to feel like a bubble again, with VCs writing $5 and $10 million dollar checks with very little due diligence, sometimes showing up to a first meeting with a term sheet… Israeli startup headlines for Nov 15, 2010. Dear Entrepreneur, Are You Happy? Funding news. venturebeat ].

Technical Review 79

Technical Review Matching Israel Venture Capital 79

VC Cafe

NOVEMBER 15, 2010

Fred Wilson warns that it is starting to feel like a bubble again, with VCs writing $5 and $10 million dollar checks with very little due diligence, sometimes showing up to a first meeting with a term sheet… Israeli startup headlines for Nov 15, 2010. Dear Entrepreneur, Are You Happy? Funding news. venturebeat ].

Technical Review 79

Technical Review Matching Israel Venture Capital 79

VC Cafe

NOVEMBER 15, 2010

Fred Wilson warns that it is starting to feel like a bubble again, with VCs writing $5 and $10 million dollar checks with very little due diligence, sometimes showing up to a first meeting with a term sheet… Israeli startup headlines for Nov 15, 2010. Dear Entrepreneur, Are You Happy? Funding news. venturebeat ].

Technical Review 79

Technical Review Matching Israel Venture Capital 79

VC Cafe

NOVEMBER 15, 2010

Fred Wilson warns that it is starting to feel like a bubble again, with VCs writing $5 and $10 million dollar checks with very little due diligence, sometimes showing up to a first meeting with a term sheet… Israeli startup headlines for Nov 15, 2010. Dear Entrepreneur, Are You Happy? Funding news. venturebeat ].

Technical Review 79

Technical Review Venture Capital Matching Israel 79

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. 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

Up and Running

MAY 11, 2016

500 CEO, an angel investor, and a serial entrepreneur. He’s perhaps best known for having founded Gust —a website that connects startups with investors—but he’s also been instrumental in a number of other ventures, including Space Angels Network, Singularity University, New York Angels, and Rose Tech Ventures.

Technical Review 60

Technical Review Term Sheet Startup Due Diligence 60

Startup Professionals Musings

SEPTEMBER 6, 2019

Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. Don’t be fooled by thinking that social networks are hot, so you should invest in the next startup you see in that realm. Fund an entrepreneur you know and trust. Think long-term.

Liquidity Event 224

Liquidity Event SEC Entrepreneur Accredited Investor 224

Berkonomics

MAY 15, 2014

A good example was during the negotiation of a term sheet. These usually involve a handful of angel investors, and a few entrepreneurs, who all want to build the very best term sheet for their exciting nascent enterprise. Basil Peters is perhaps the best known name in the world of early stage company exits.

Term Sheet 91

Term Sheet Angel Groups Angel Investor Deal Structure 91

David Teten

JANUARY 19, 2021

See Why Are Revenue-Based Investors Investing in Women & Diverse Entrepreneurs? Zack Mueller, Attorney, Ireland Stapleton Pryor & Pascoe, PC , points that almost “no one, from LPs to entrepreneurs to attorneys, has much experience with these instruments. Particular application in impact capital. Emily Campbell, Esq.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

APRIL 25, 2013

We had them a term sheet the same week. And still able to make it out to LA networking events. She was everything I was looking for in an entrepreneur to back. So, Mark, enough entrepreneur love. Turns out Punky was a childhood hero for Tasha. That’s cute. They pitched on a Wednesday. That happens, right?

Haiti 398

Haiti San Francisco Startup Turkey 398

Gust

AUGUST 6, 2014

In all cases, the one fundamental requirement is that the company and the investor agree on how much is being invested, and on what terms. These items are included in what is known as a term sheet. What the terms end up being, and how a company and the investor(s) arrive at that term sheet, can differ widely.

Term Sheet 170

Term Sheet Lead Investor Preferred Stock Common Stock 170

Sophia Perl of Wisdom

NOVEMBER 9, 2010

My one feedback would be to have networking earlier in the agenda or sprinkled throughout the 6 hour agenda. 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

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. They’re looking for guidance on building the company, the ability to tap into a VC’s network, and help with potential business opportunities.

Lean 108

Lean Venture Capital Conversion IPO 108

Both Sides of the Table

APRIL 14, 2012

…” I’ll write soon on my views of why I believe Instagram took off as a social network and what I think comes next. Instagram happens to be one of the few social networks I regularly use along with Twitter. Just checked their balance sheet. Clichés abound about, “You know what would be cool?

Valuation 316

Valuation Balance Sheet Dilution Term Sheet 316

Startup Professionals Musings

JUNE 6, 2022

Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. Fund an entrepreneur you know and trust. Most entrepreneurs start asking for money from this tier, when they have very little more than an idea. Think long-term.

Liquidity Event 300

Liquidity Event Angel Investor SEC Accredited Investor 300

Both Sides of the Table

FEBRUARY 8, 2010

But what about once you have a term sheet? First, I would say that most entrepreneurs do almost no reference checks or at least do them very informally. For some reason most entrepreneurs do. I always tell entrepreneurs, “in good times of course everybody loves their VC. Don’t let that be you.

Venture Capital 288

Venture Capital Term Sheet Cofounder Partner 288

Startup Professionals Musings

APRIL 3, 2012

Angels typically have simpler term sheets, don’t squeeze so hard on valuations, and are more realistic on time-frames. Successful serial entrepreneurs usually find it easier to raise money from venture capitalists. Founder network. These include the following: Investment control. Team experience.

IRR 248

IRR Term Sheet Startup Valuation 248