The Next Web

SEPTEMBER 13, 2013

The term sheets tend to be fairly standardized and straightforward as well. Term sheets are littered with many more obscure protective provisions and onerous terms. From there, you typically get the thumbs up or down within a day or two. You then have a defined period to close, which is usually a month or so.

Asia 132

Asia Silicon Valley India Term Sheet 132

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 Syndicate 162

YoungUpstarts

SEPTEMBER 20, 2019

It’s often more all about fearing how tough VCs are going to be with their term sheets and ‘standard’ clauses. Your Reputation is on the Line. Though if you have a reputation giving bad deals, you may not have anyone to negotiate with in the future. As well as how to work with pre and post-money valuations.

Technical Cofounder 127

Technical Cofounder Entrepreneur Cofounder Post-Money Valuation 127

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

Hunter Walker

AUGUST 7, 2021

This rarely occurs with established investors, because they know breaking their word is a reputation killer around our community. Can someone develop a reputation for being a Mr or Ms Maybe or overpromising and underdelivering? Or it was pulled for no reason. Or the investor didn’t have the money to close the commitment.

Term Sheet 156

Term Sheet Due Diligence Reputation Early Stage 156

Startup Professionals Musings

APRIL 22, 2012

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. If the term sheet process turns to pure torture, it may be time to respectfully bow out. Many entrepreneurs believe all money is created equal.

Angel Investor 281

Angel Investor Term Sheet Entrepreneur Due Diligence 281

ReadWriteStart

JUNE 1, 2020

It is essential to understand the funding structure stated in your term sheet and the advantages and disadvantages it may have for your business. This makes the existing investors extremely unhappy and tarnishes the market reputation of the company. billion dollars in 2017.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

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

Startup Professionals Musings

MAY 26, 2013

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. If the term sheet process turns to pure torture, it may be time to respectfully bow out. Many entrepreneurs believe all money is created equal.

Angel Investor 263

Angel Investor Term Sheet Due Diligence Early Stage 263

Startup Professionals Musings

DECEMBER 26, 2021

On the other hand, when negotiating a financing for your company, you should never present your term sheet first. Remember, your lawyer is a reflection of you, so check their reputation and style, as well as their win-loss record. Always wait for the investor to play his hand. Next, make sure you listen more than you talk.

Term Sheet 328

Term Sheet Bootstrapping Finance Startup 328

Startup Professionals Musings

DECEMBER 3, 2010

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. If the term sheet process turns to pure torture, it may be time to respectfully bow out. Many entrepreneurs believe all money is created equal.

Angel Investor 244

Angel Investor Term Sheet Due Diligence Early Stage 244

Both Sides of the Table

NOVEMBER 18, 2012

He shut down his company gracefully and even thought it must have felt like a crap sandwich doing so I’ll bet his reputation is still solid with his backers. But why don’t you just give me the damn term sheet you promised so I can trust you even more. He had raised nearly $500,000 from investors. Many are well known.

Monaco 420

Monaco Cofounder Chicago Mexico 420

View from Seed

MAY 17, 2019

There are two distinct chapters to venture fundraising – the first is entrepreneurs pitching their startup to multiple firms to generate interest and ultimately secure a term sheet; then, the period after a term sheet has been signed progressing to close.

Term Sheet 149

Term Sheet Reputation Security Conversion 149

Diego Basch

FEBRUARY 28, 2012

We could have insisted on a term sheet, even though term sheets are non-binding. I believe the startup should have pushed for the term sheet as soon as possible. Either the acquirer would have said no (end of story right there), or the sheet would have been signed.

Term Sheet 56

Term Sheet Redemption Acquisition Reputation 56

Startup Professionals Musings

OCTOBER 26, 2012

On the other hand, when negotiating a financing for your company, you should never present your term sheet first. Remember, your lawyer is a reflection of you, so check their reputation and style, as well as their win-loss record. Always wait for the investor to play his hand. Next, make sure you listen more than you talk.

Entrepreneur 248

Entrepreneur Term Sheet Finance Bootstrapping 248

Startup Professionals Musings

DECEMBER 4, 2013

On the other hand, when negotiating a financing for your company, you should never present your term sheet first. Remember, your lawyer is a reflection of you, so check their reputation and style, as well as their win-loss record. Always wait for the investor to play his hand. Next, make sure you listen more than you talk.

Term Sheet 246

Term Sheet Bootstrapping Finance Reputation 246

Both Sides of the Table

FEBRUARY 27, 2012

They are people who are persuasive (see point 3 below), who compile relevant facts and who are willing to put their reputations on the line to get a deal done. And frankly if you do get a term sheet one day these are the people you’ll be working with so the more you know them (and their reputation) the better.

Partner 308

Partner Term Sheet Sales Portfolio 308

Startup Professionals Musings

AUGUST 1, 2011

On the other hand, when negotiating a financing for your company, you should never present your term sheet first. Remember, your lawyer is a reflection of you, so check their reputation and style, as well as their win-loss record. Always wait for the investor to play his hand. Next, make sure you listen more than you talk.

Term Sheet 232

Term Sheet Bootstrapping Startup Finance 232

Startup Lessons Learned

JULY 26, 2011

And reading a term sheet has all the entertainment value of watching dried paint get even drier. For example, the right way to think about a term sheet is as a negotiation over just two things: economics and control. Everything in a term sheet is negotiable - if and only if you already have sufficient leverage. (Do

Antidilution 148

Antidilution Term Sheet Silicon Valley Widget 148

Startup Professionals Musings

MARCH 17, 2019

On the other hand, when negotiating a financing for your company, you should never present your term sheet first. Remember, your lawyer is a reflection of you, so check their reputation and style, as well as their win-loss record. Always wait for the investor to play his hand. Next, make sure you listen more than you talk.

Term Sheet 201

Term Sheet Bootstrapping Finance Reputation 201

This is going to be BIG.

JUNE 4, 2017

At the end of the day, however, a VC's money is just as green as the next one--which is where your reputation comes in. The reputation you create off of each 1:1 interaction with a founder is like a rainy day fund. When it all works out, it's amazing--and when it doesn't, it's really tough, but challenging in the best of ways.

Reputation 75

Reputation Cap Table Term Sheet Green 75

Startup Professionals Musings

MARCH 20, 2017

On the other hand, when negotiating a financing for your company, you should never present your term sheet first. Remember, your lawyer is a reflection of you, so check their reputation and style, as well as their win-loss record. Always wait for the investor to play his hand. Next, make sure you listen more than you talk.

Search 146

Search Term Sheet Bootstrapping Finance 146

This is going to be BIG.

SEPTEMBER 1, 2010

Sure, there will always be another investor who hears that you’ve got a term sheet that is willing to one-up it on price, but it’s really hard to get that first one in the pool. The investor water cooler occasionally falls victim to reputation racketeering.

Equity 104

Equity Term Sheet Seed Stage Angel Investor 104

David Cohen

MARCH 18, 2019

If they want to invest, they’re going to want to lead and will throw out a term sheet. The person you’re asking doesn’t want the extra responsibility, the extra work, nor the extra risk to their reputation. Let them know they’re wanted. You never have to ask them to be your “lead investor.”

Lead Investor 129

Lead Investor Term Sheet Seed Stage Venture Capital 129

View from Seed

MARCH 12, 2015

Even if a VC passed on Startup X (or Startup X turned down that VC’s term sheet), getting intel from folks who have directly interacted with a particular firm can be very useful. Data doesn’t lie and reputations, good or bad, exist for a reason, but you should still try to gather multiple data points for comparison whenever possible.

Term Sheet 120

Term Sheet Cofounder SEC Portfolio 120

View from Seed

MAY 31, 2023

On the other side of the term sheet, as expressed by Gordon Moore , Silicon Valley pioneer, and co-founder of Intel, “you’re more valuable because of the experiences you’ve been through under failures.” It is worth noting, that success and failure are interpreted differently in the studies referenced.

Silicon Valley 156

Silicon Valley Cofounder Term Sheet Founder 156

David Teten

SEPTEMBER 6, 2015

Protecting one’s reputation is incredibly important for any investor, whether independent or corporate. The term sheets of good corporate investors reflect the venture capital industry standards and don’t require special treatment like first right of refusal in case of a sale or operating agreements with their parent company’s divisions.

Venture Capital 60

Venture Capital Balance Sheet Technical Review Portfolio 60

View from Seed

MAY 12, 2015

ultimately, a term sheet) when pitching any given firm? Always take into account an individual VC’s reputation. Even if a firm has a great reputation, sometimes individuals at that firm aren’t as pristine. Even if a firm has a great reputation, sometimes individuals at that firm aren’t as pristine.

Partner 120

Partner Term Sheet Reputation Deal Flow 120

Feld Thoughts

FEBRUARY 25, 2016

If you’ve never experienced a retrade, or don’t know what I’m talking about, it’s the situation when you have a firm deal agreed upon or a term sheet signed and are proceeding to closing a deal, when the investor (or acquirer) decides to change the terms of the deal.

Term Sheet 70

Term Sheet Reputation Valuation Acquisition 70

Genuine VC

MARCH 25, 2010

He lamented that if the meetings with this venture firm soon led to a term sheet, he’ll be faced with a tough problem of a binary decision – take whatever they offer him (which was likely too much money for what the company needs now at not a great price) or risk losing any funding options.

Early Stage 123

Early Stage Venture Capital Term Sheet Conversion 123

Genuine VC

MARCH 25, 2010

He lamented that if the meetings with this venture firm soon led to a term sheet, he’ll be faced with a tough problem of a binary decision – take whatever they offer him (which was likely too much money for what the company needs now at not a great price) or risk losing any funding options.

Early Stage 121

Early Stage Venture Capital Term Sheet Conversion 121

Feld Thoughts

OCTOBER 4, 2015

We are very pleased with the deal and the price and appreciated that our reputation for just getting it done resulting in a significantly lower price. Ask about, and understand the process from LOI / term sheet to close. There are also a lot of unsophisticated buyers and investors out there. Basically, don’t be naive.

Term Sheet 70

Term Sheet Finance Reputation Founder 70

abovethecrowd.com

NOVEMBER 28, 2022

As the bull market raged on from 2015 to 2022, it became quite trendy for venture capitalists to wave the requirement for an annual audit which is embedded in almost every standard Series A term sheet. In addition, their reputation will help ensure that investors know the company has the benefit of their experience and advice.

Venture Capital 113

Venture Capital Non-Compete Government Delaware 113

This is going to be BIG.

NOVEMBER 11, 2013

Dennis and Naveen had pitched just about every investor you could think of and came up with a whopping zero term sheets. Visibly go all in with your reputation and effort. Two years later, Foursquare launched at that same conference and I sat on joining it for months and months after. Not hot at all. Show up early.

Columbus 114

Columbus Venture Capital Viral Term Sheet 114

Scott Edward Walker

NOVEMBER 26, 2017

From a practical perspective, this means getting actively involved in your local tech community, regularly attending industry events and conferences, writing blog posts/articles, integrating yourself into communities on social networks and, of course, doing outstanding work as an employee (to develop a great reputation). Conclusion.

Term Sheet 63

Term Sheet San Francisco Founder Investment Bankers 63

Gust

OCTOBER 2, 2014

He shut down his company gracefully and even thought it must have felt like a crap sandwich doing so I’ll bet his reputation is still solid with his backers. But why don’t you just give me the damn term sheet you promised so I can trust you even more. He had raised nearly $500,000 from investors. Many are well known.

Monaco 122

Monaco Cofounder Chicago Mexico 122

Feld Thoughts

JULY 14, 2015

The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless. And developing a reputation for recapping seed rounds is, in my book, silly. So they recapitalize the company. In a single turn game, this might be rational behavior.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70