Both Sides of the Table

AUGUST 8, 2009

Traction can simply mean showing that you’re making progress with customers, product development, channel partners, initial revenue as a proof point, attracting well-known angel investors, winning industry awards / recognition. It’s not required but I have seen this technique be used effectively by entrepreneurs.

Technical Review 309

Technical Review Term Sheet Venture Capital Revenue 309

Both Sides of the Table

APRIL 13, 2011

There was a lot of consumer internet activity again…resurgence of things, but it was still mysterious, venture capital was still kind of closed, 1st time entrepreneurs had a lot of questions that were unanswered, and there was still some sort of hand waiving around all the financing stuff and so we took it on….”. Is that when it became big?

Technical Review 288

Technical Review Venture Capital Silicon Valley Software Review 288

Startup Professionals Musings

SEPTEMBER 10, 2014

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 257

Technical Review Due Diligence Term Sheet Offshore 257

Startup Professionals Musings

OCTOBER 6, 2023

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. Visit reference customers, partners, and vendors.

Technical Review 296

Technical Review Due Diligence Term Sheet Bankruptcy 296

Both Sides of the Table

DECEMBER 2, 2010

It’s the story of persistence in entrepreneurs. As a VC I’m acutely that a “yes&# decision to support an entrepreneur can do just that, yet I only write 2-4 of them per year and maybe another 3-4 as an angel. I try not to go out to entrepreneur events in LA every night – I have work to get done and a family.

Europe 352

Europe France San Francisco Chicago 352

Both Sides of the Table

OCTOBER 19, 2014

We are often asked how companies get funded, why VCs make the decisions we make and what we’re looking for in entrepreneurs. By September 18th we were ready to bring them to a full partner meeting and as a group we were bought into the vision and the experience of this exact team to pull things off.

Technical Review 373

Technical Review North America Los Angeles Cofounder 373

Both Sides of the Table

APRIL 23, 2017

Also, make sure you know several partners at the VC firms who have invested in you because in tough times it helps to have very broad support. You need to know how many partners they have and which partners do which kinds of deals. The best VCs follow up but then so, too, to the best entrepreneurs. That’s fantasy land.

Burn Rate 238

Burn Rate Term Sheet Fractional CTO CTO Hire 238

Both Sides of the Table

APRIL 19, 2011

Called Tim Spicer (c-companies partner) and he told him matt, they only want one thing, more warrant coverage!!! Raised money from Splitrock Partners (of whom Matt thinks very highly) experience was so emotionally traumatic he came out of it vowing he’d never go thru that again – get cash flow positive RIGHT NOW!!! [if

Acquisition 304

Acquisition Warrant Customer Term Sheet 304

Both Sides of the Table

JANUARY 21, 2010

I recently read a post over on VentureHacks titled, “ Top Ten Reasons Entrepreneurs Hate Lawyers &# written by Scott Walker (who blogs on legal issues for entrepreneurs ). Because many great entrepreneurs work with lawyers in registering their companies they have their ear to the pavement on the earliest of company formations.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Steve Blank

NOVEMBER 5, 2009

Product Development – Getting Funded as The Goal In a traditional product development model, entrepreneurs come up with an idea or concept, write a business plan and try to get funding to bring that idea to fruition. Did the partner have a good or bad day, etc. The goal of their startup in this stage becomes “getting funded.”

Customer Development 270

Customer Development Developer Customer Silicon Valley 270

www.founderinstitute.com

MARCH 2, 2010

When members see connections, they often partner with one another, backstopping and expanding each other’s capabilities and skills or forming entirely new ventures. Chris Dixon posted about an ideal term sheet for first round funding, which started an blogosphere discussion about terms.

Term Sheet 40

Term Sheet Liquidation Preference Vesting San Diego 40

YoungUpstarts

SEPTEMBER 20, 2019

by Alejandro Cremades , cofounder of Panthera Advisors and author of “ The Art of Startup Fundraising: Pitching Investors, Negotiating the Deal, and Everything Else Entrepreneurs Need to Know “ Why should entrepreneurs intentionally be generous when negotiating with investors? They believe it builds loyalty and trust.

Technical Cofounder 127

Technical Cofounder Entrepreneur Cofounder Post-Money Valuation 127

ReadWriteStart

SEPTEMBER 2, 2011

Therefore, going down the fundraising path is something many technology entrepreneurs will need to do and a critical step in the development of their business. If you're earlier in the process, a small angel round or partnering with an accelerator may be the best approach. Tip 4: Really Understand Key Terms.

Cap Table 125

Cap Table Term Sheet Liquidation Preference Technical Review 125

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

The Next Web

SEPTEMBER 13, 2013

Many Asian entrepreneurs tell me that they want to raise funds from Silicon Valley firms because they perceive the valuations to be higher. In India, the leading firms are slightly more concentrated with Sequoia India , Accel Partners , and Nexus Venture Partners being a cut above the rest. Thus, VCs have the upper hand.

Asia 132

Asia Silicon Valley India Term Sheet 132

www.quora.com

JANUARY 16, 2011

Find Questions, Topics and People Add Question Add Question Venture Capital Venture Capital Term Sheets Startups Term Sheets What are examples of good startup term sheets? Ycombinator open source term sheet is a good start for Seed deals. Brad Feld does the best blog term sheet series.

Term Sheet 41

Term Sheet Startup Angel Investor Wiki 41

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”). That number in the Valley might be closer to 10%.

Los Angeles 138

Los Angeles Southern California Silicon Valley Technical Review 138

Startup Professionals Musings

JANUARY 17, 2015

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. Visit reference customers, partners, and vendors. business due diligence entrepreneur investors startups'

Technical Review 120

Technical Review Due Diligence Startup Term Sheet 120

Hunter Walker

JANUARY 5, 2014

The Stage 1 partner escalates an opportunity to Stage 2 when we’ve been able to create a hypothesis as to why this might be a good investment. That partner also generates a set of questions for the other partner to push on in their discussions and data requests. Stage 2 : Here both of us are engaged.

Software Review 120

Software Review Balance Sheet Cofounder Technical Review 120

Both Sides of the Table

SEPTEMBER 26, 2015

Often if it’s a bigger firm (say 4 partners or more) and it’s a super small investment for their fund size (let’s say $250-500k when they normally invest $5-7 million) they will just require 1 or 2 partners to decide. What happens next feels like a black box to outsiders. ” Some firms are collegiate.

Venture Capital 150

Venture Capital Detroit Early Stage Partner 150

Genuine VC

APRIL 29, 2013

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. Agreement of key terms between entrepreneur + VC firm.

Term Sheet 150

Term Sheet Valuation Partner Conversion 150

View from Seed

APRIL 30, 2015

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. Use good judgment, talk to your co-founders/investors/lawyers, and partner with a bank that values transparency and relationships such as SVB.].

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

View from Seed

SEPTEMBER 4, 2018

That said, we tend to be very flexible on syndication to bring on great partners, and have collaborated with terrific partners like our most frequent co-investors Founder Collective, Accomplice, LHV, Softech, and others. Despite these shifts, the core principles of our approach and the ethos of our firm has remained the same.

North America 120

North America Seed Stage Early Stage Lead Investor 120

Genuine VC

OCTOBER 2, 2012

After completing a long process identifying the right venture firms to pitch, running an exhaustive fundraising process, finding a mutual fit, and successfully negotiating terms… at last, the term sheet is signed. The two- to six- week time between the signing of the term sheet and closing is “venture limbo.”

Term Sheet 162

Term Sheet Founder Vesting Due Diligence Syndication 162

YoungUpstarts

OCTOBER 28, 2015

by John Vrionis, partner at Lightspeed Venture Partners. This past summer, the Lightspeed Summer Fellowships program invited selected guests to provide aspiring entrepreneurs a perspective into all aspects of starting a new company. Lightspeed is in the business of encouraging entrepreneurship.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

OnlyOnce

OCTOBER 31, 2013

Fred Wilson has been a venture investor and director in Return Path since 2000, first with Flatiron Partners and then with Union Square Ventures. Here are a few tips for ending up with the best long-term partner as an investor. And this is true of any negotiation, not just a term sheet. Selecting Your Investors.

Valuation 133

Valuation Term Sheet B2C Security 133

NZ Entrepreneur

AUGUST 4, 2021

Byron van Vugt from NZ Growth Capital Partners explains. Lead investors and term sheets. Those investors interested in becoming lead will issue what’s called a term sheet – this details the terms they’re willing to invest on. Byron van Vugt is a senior investment analyst at NZ Growth Capital Partners.

Technical Review 65

Technical Review Software Review Founder Due Diligence 65

Scott Edward Walker

AUGUST 25, 2011

Introduction I’ve been doing deals as a corporate lawyer for 17+ years, and there are certain fundamental mistakes that I’ve seen entrepreneurs make over and over again. Sadly, there are a lot of bad apples out there, and entrepreneurs need to be careful whom they are doing deals. Will he add significant value (e.g.,

Technical Review 63

Technical Review Term Sheet Los Angeles Entrepreneur 63

Gust

DECEMBER 21, 2011

The Valley produces world-class entrepreneurs, angel investors, venture capitalists and successful high-tech companies – all growing and creating jobs on one relatively small peninsula. Many other communities are entrepreneur-friendly and, by any measure, have the tools in place to spawn new high growth companies.

Silicon Valley 107

Silicon Valley Southern California Tucson Seattle 107

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

Rob Go

DECEMBER 14, 2016

When a VC invests in a startup, the two parties usually sign a term sheet that lays out the major terms of the investment round. 90%+ of term sheets result in a closed deal that is more or less equivalent to what was discussed. In the M&A process, an LOI feels an awful lot like a term sheet.

Term Sheet 28

Term Sheet Technical Review Due Diligence Private Equity 28

Up and Running

JANUARY 26, 2012

Ideally you’ll look to partner with an investor who has knowledge of your specific sector, as well as a network of contacts that can be called upon when needed. Finally you need to be very clear on the terms of the investment i.e. above and beyond the headline rates. What is their preferred exit strategy? Don’t let that be you.

Term Sheet 94

Term Sheet Exit Strategy Software Review Early Stage 94

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

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.

Technical Review 79

Technical Review Matching Venture Capital Israel 79

K9 Ventures

APRIL 27, 2011

The day before we were supposed to sign the term sheet for the investment, Like.com sued Ugmode (the parent company of Modista.com) for patent infringement. I don’t know about you, but as an entrepreneur if someone threatened me that way I’d tell them exactly where to put their words and their smart-ass idea.

Software Review 134

Software Review Technical Review IP Finance 134

David Teten

JANUARY 19, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. Of the Inc. 5000 companies, only 6.5% return cap.

Cofounder 78

Cofounder Technical Review Equity Dividend 78