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

Both Sides of the Table

MAY 10, 2018

What you don’t know is that MANY of these financings have been a months’ long series of no’s, compromises, hard terms, heartaches, arguments, self doubt, followed by a “yes” that saves the day. When you finally get a term sheet you get three. Fund raising seems so easy for everybody else and you’re doing something wrong.

Term Sheet 232

Term Sheet France Technical Review Restful 232

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

Both Sides of the Table

MARCH 17, 2012

The very first time I ever negotiated a term sheet (and then legal docs for closing the round) I found the experience very frustrating. He marks up the term sheet. Seems like the term sheet will be done in a day or so. And it obviously doesn’t just apply to a VC financing. Nor did their lawyer.

Term Sheet 301

Term Sheet Ireland Cofounder Finance 301

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

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. Some VCs merely view term sheets as “marketing documents.”

Term Sheet 150

Term Sheet Valuation Partner Conversion 150

David Teten

AUGUST 19, 2019

Does the traditional VC financing model make sense for all companies? 2018 also had the fewest number of angel-led financing rounds since before 2010. John Borchers, Co-founder and Managing Partner of Decathlon Capital, claims to be the largest revenue-based financing investor in the US. Absolutely not.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Both Sides of the Table

MARCH 3, 2012

Since I didn’t originally source the deal I let my co-investor set the terms and negotiate the deal with my consent. But it was early 2009 and not many companies were getting new financings at all so I thought they should take the deal. But for me I care too much about my long-term reputation. He has signed a term sheet.

Term Sheet 356

Term Sheet Silicon Valley Reputation Partner 356

YoungUpstarts

FEBRUARY 6, 2017

As an entrepreneur, your goal when raising financing is to get several term sheets — the documents describing the terms and conditions of financing. One of the worst positions you can be in during a financing is to have investors interested, but be too far short of your goal. Close the deal.

Venture Capital 100

Venture Capital Term Sheet Technical Review Due Diligence 100

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

Both Sides of the Table

MAY 9, 2018

You race back to the office to tell everybody how well it went and you wait for the follow-up call to have a partners’ meeting or talk about term sheets or at least dip into due diligence. The assistant tried to end the meeting twice but was shoooshed away. What do I do now?

Software Review 381

Software Review Churn Rate Due Diligence New York 381

Feld Thoughts

DECEMBER 28, 2010

On the heels of all the noise around Groupon’s $ 100m financing at a $7.5b (billion) post valuation, I thought I’d put out a call for “old VC term sheets – prior to 1990.&#. My partner Jason Mendelson and I are working on a book titled Venture Financings: How To Look Smarter Than Your Lawyer and VC.

Term Sheet 118

Term Sheet Search Finance Valuation 118

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. Q: “If you have a term sheet on the table how should you leverage with other VCs?&#

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

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. Very often, the initial opinions of the people around the table are radically different.

Term Sheet 91

Term Sheet Angel Groups Angel Investor Deal Structure 91

Startup Company Lawyer

MARCH 14, 2010

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

YFS Magazine

OCTOBER 8, 2016

It can be tempting to skip the term sheet and simply have your lawyer prepare the investment documents.

Term Sheet 112

Term Sheet Startup Venture Capital Finance 112

www.seriesseed.com

MARCH 2, 2010

SeriesSeed.com Series Seed Financing Documents Blog Home Documents Blog Archives Subscribe 09/02/2010 Version 2.0   That’s because there are not that many issues to negotiate in a simple equity financing. 2) Redline - Series Seed Term Sheet (1 v. Series Seed Term Sheet (v 2.0) Then you win.”

Finance 58

Finance Term Sheet Equity Aggregator 58

YoungUpstarts

OCTOBER 12, 2017

However, as a condition of financing they may require annual audited financial statements. For many startups this results in a need to raise additional financing through debt or equity arrangements. Many of these companies are pre-revenue and in the cash burn stage as they try to establish their technology and market.

San Francisco 133

San Francisco Forecast Early Stage Term Sheet 133

ReadWriteStart

MARCH 31, 2020

According to Ben Narasin , “in 2020, investors will require firmer governance and oversight structures to safeguard against negative impact and ensure these protections are mandated in their term sheets.”. One of the fundamental conditions for picking a startup is that they have a stellar management team.

Technical Review 175

Technical Review Artificial Inteligence Startup Term Sheet 175

www.seriesseed.com

DECEMBER 9, 2012

Series Seed Financing Documents Blog. Series Seed Financing Documents. Series Seed Term Sheet (v 2.0). Series Seed Term Sheet. Listed below are links to weblogs that reference Series Seed Financing Documents : 1 Reblog. SeriesSeed.com. Blog Archives.   Series Seed COI (v 2.0).

Finance 40

Finance Term Sheet Vesting LLC 40

SoCal CTO

JANUARY 5, 2011

500 Hats , January 10, 2010 Developing new startup ideas - Chris Dixon , March 14, 2010 Batch Processing Millions and Millions of Images - Code as Craft , July 9, 2010 jQuery Plugin: Give Your Characters a NobleCount - The Product Guy , March 23, 2010 How do the sample Series Seed financing documents differ from typical Series A financing documents?

Silicon Valley 378

Silicon Valley Startup Term Sheet Venture Capital 378

Both Sides of the Table

OCTOBER 19, 2014

By September 26th we had submitted a term sheet which was signed on October 4th and financing was closed in less than 30 days. Massive success after just one week of launching that has continued into the third week (this week) with their first property.

Technical Review 373

Technical Review North America Los Angeles Cofounder 373

Startup Professionals Musings

DECEMBER 26, 2021

In reality, a financing negotiation is not a single-round winner-take-all game, since a “good” deal requires that both parties walk away satisfied -- with a win-win relationship. On the other hand, when negotiating a financing for your company, you should never present your term sheet first. Marty Zwilling.

Term Sheet 328

Term Sheet Bootstrapping Finance Startup 328

Gust

DECEMBER 27, 2012

While yCombinator and TechStars are the two best known, there dozens of others, local, national and international, many specializing in specific areas (including fashion, food, finance, gaming, etc.) This person will be critical in rounding up other investors, drafting a term sheet, and generally getting the deal done.

Software Review 164

Software Review Term Sheet Technical Review Angel Investor 164

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. Closing : Is there a specific date that the convertible debt financing will close, or will there be an open round of seed investment ?

Term Sheet 62

Term Sheet Pre-Money Valuation Liquidity Event Warrant 62

Both Sides of the Table

SEPTEMBER 5, 2012

Was Paul Graham right in his “high resolution” financing post? I can’t say it much simpler than this: “What if I took some of the worst, most egregious terms in a standard term sheet and made them the defacto standard in most convertible debt deals? Let me explain it more clearly in equity terms.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

Both Sides of the Table

APRIL 23, 2017

It’s why raising a round of capital often feels like a hollow victory because it almost feels like a temporary reprieve from the Grim Reaper and in a way every new round just sets the bar higher to clear for the next round of financing or the hope of reaching profitability. You’re not done until you’re done. That’s fantasy land.

Burn Rate 238

Burn Rate Term Sheet CTO Hire Fractional CTO 238

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

Gust

SEPTEMBER 29, 2011

It should therefore come as no surprise that an asymmetry of information exists, mostly gleaned from experience, between founders and investors in a venture financing deal. A term sheet for a convertible note deal may run two or three pages, versus 8-10 pages for a typical Series A Preferred Stock financing.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

YoungUpstarts

OCTOBER 28, 2015

This article highlights their advice on issues ranging from financing to patent trolls: While startups may believe lawyers are too costly, working with one early on avoids potentially serious problems later. ” The Cost of Financing. In a Series A financing, companies must pay the investors’ lawyers as well as their own.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

Both Sides of the Table

SEPTEMBER 8, 2012

But Paul Graham really did have a point in his “ high resolution fundraising ” post – that there is a problem – particularly in angel financing – with herding cats. 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.

Pre-Money Valuation 294

Pre-Money Valuation Finance Liquidation Preference Warrant 294

View from Seed

FEBRUARY 23, 2021

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. In other words, by the time the term sheet is signed, everyone else in the syndicate is already known and have been talking to the founder already.

Syndication 207

Syndication Syndicate Term Sheet Cofounder 207

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.

Term Sheet 60

Term Sheet Conversion Rights Venture Capital Liquidation Preference 60

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

ReadWriteStart

SEPTEMBER 2, 2011

While certainly not every business needs to raise venture financing, it is the path for many high-growth technology startups. Tip 4: Really Understand Key Terms. Once you get the term sheet make sure you know how to read it. Once you have a term sheet you are happy with, don't over negotiate.

Cap Table 125

Cap Table Term Sheet Liquidation Preference Technical Review 125

SoCal CTO

JULY 13, 2010

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. Will you negotiate million dollars rounds of financing with cool VCs? Yes, even bootstrappers. People you don’t know.

Cofounder 175

Cofounder Technical Cofounder Term Sheet Startup 175

Gust

NOVEMBER 11, 2011

Angel investment events where the group investment is supposed to go to the winner, but the winner ends up hating the term sheet. Usually these term sheets involve convertible notes, which are supposed to convert to equity at the next round of financing, like when the serious venture capitalists do a Series A.

Software Review 79

Software Review Term Sheet Due Diligence Angel Investor 79