www.founderinstitute.com

MARCH 2, 2010

He counsels public and private company clients in a variety of industries including information technology, government contracting, software and telecommunications. 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

This is going to be BIG.

MAY 12, 2014

It''s also probably less than most funded CEOs are making--or certainly less than your average software developer. I send out my own term sheets and review docs myself--especially since I''m in sydicated rounds. If I was optimizing for cash, I would have been an investment banker a long time ago. I don''t have any kids.

Investment Bankers 167

Investment Bankers Term Sheet Venture Capital Technical Review 167

Gust

NOVEMBER 11, 2011

In fact, before the final event, the investors have already done due diligence. Angel investment events where the group investment is supposed to go to the winner, but the winner ends up hating the term sheet. Angel investment events where the due diligence isn’t done before the event.

Software Review 79

Software Review Term Sheet Due Diligence Angel Investor 79

NZ Entrepreneur

AUGUST 4, 2021

Again, use this as an opportunity to pique their interest – and ultimately, land follow-up meetings or enter due diligence. Due diligence, information memorandums & data rooms. Lead investors and term sheets. Now that you’ve got investors undergoing due diligence, you must secure a lead investor.

Technical Review 68

Technical Review Software Review Founder Due Diligence 68

K9 Ventures

APRIL 27, 2011

The first time I asked them what they needed, they said they just need to crank out code. While Zappos was doing diligence on Modista, the issue was brought up that one of other companies in this space — Like.com , founded by Munjal Shah — had filed for some IP in this area. And crank it out they did.

Software Review 134

Software Review Technical Review IP Finance 134

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). Maybe because Homebrew is our startup, just one which writes checks instead of code. 4) Fund Operations.

Software Review 127

Software Review Balance Sheet Cofounder Technical Review 127

David Teten

DECEMBER 3, 2019

However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and. They read reviews of the products of target investments.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). I also reviewed the TechStars documents last year and they are similar in concept to the Y Combinator documents as the chart below indicates.). under $500K).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

ReadWriteStart

JUNE 1, 2020

Any custom manufactured IoT device would require software development as well as hardware customization. It is essential to understand the funding structure stated in your term sheet and the advantages and disadvantages it may have for your business. Both of which are expensive and time-consuming. It is a symbiotic relationship.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

This is going to be BIG.

SEPTEMBER 30, 2012

This is a company that, according to the article, got term sheets from half of the VCs that expressed interest in the company. More and more of our best and brightest are learning to code and/or joining the ranks of innovative startup companies instead of working for banks and consulting firms.

Venture Capital 119

Venture Capital Marketing Term Sheet Software Review 119

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

BeyondVC

OCTOBER 13, 2004

I was speaking with a friend of mine today who mentioned that his term sheet for his Series A round fell through. To make a long story short, one of the co-founders of the company built the company’s software in his spare time. The more prepared you are the more impressed the VC is and the quicker the deal closes.

Software Review 78

Software Review Intellectual Property IP Due Diligence 78

Gust

SEPTEMBER 27, 2014

The ten questions that make up the core of the Gust executive summary (and that in turn comprise the bulk of the ‘One Pager’ that investors print out for screening and review sessions) are only the distilled tip of the iceberg.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

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

Finally you need to be very clear on the terms of the investment i.e. above and beyond the headline rates. You may receive a term sheet which outlines the terms of the investment, and this will need to be reviewed by someone qualified to do so. Alan Gleeson is the General Manager of Palo Alto Software UK.

Term Sheet 94

Term Sheet Exit Strategy Software Review Early Stage 94

BeyondVC

OCTOBER 13, 2004

I was speaking with a friend of mine today who mentioned that his term sheet for his Series A round fell through. To make a long story short, one of the co-founders of the company built the company’s software in his spare time. The more prepared you are the more impressed the VC is and the quicker the deal closes.

Software Review 60

Software Review Intellectual Property IP Due Diligence 60

David Teten

AUGUST 19, 2019

We’re currently evaluating about 20 companies a month and issuing term sheets to 25% of them; those that fit our investment criteria. We have reviewed the application process of other RBI lenders and have not found one that has more API connections that ours. On a 3-year term, the cap amounts typically range from 0.4-0.6x

Revenue 60

Revenue Technical Review Software Review Equity 60

A Crowded Space

SEPTEMBER 18, 2015

This can lead to lots of hype among investors and very rapid financings where VCs are forced to “act quickly” and provide term sheets in less than 48 hours. Once a startup starts receiving attention, it can snowball and you get constant press coverage across Techcrunch, Re/code, etc.

San Diego 60

San Diego Software Review San Francisco Silicon Valley 60

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.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116

Sophia Perl of Wisdom

NOVEMBER 9, 2010

For example, “I have over 10 years of software experience in this space, how do you plan to have a strong barrier to entry in this crowded space?&#. If people say it’s a hard problem, then it’s an opportunity to have a good barrier to entry and helps long-term competitive advantage. What key hires do you need?

CTO Hire 49

CTO Hire Cofounder Fractional CTO San Francisco 49

Cracking the Code

JULY 5, 2016

“Like any successful partnership, the acqui-hiring and -hired companies must fully align in terms of strategic goals, operational processes and culture. Both companies need to actively learn from one another throughout the diligence process, and maintain an open and honest line of communication in the early days of the expansion.”

Italy 59

Italy Technical Review Germany Poland 59

www.seriesseed.com

MARCH 2, 2010

2) Redline - Series Seed Term Sheet (1 v. Series Seed Term Sheet (v 2.0) Series Seed Term Sheet (v 2.0) The advent of cloud computing, open source software, platforms with APIs, and numerous other changes have lowered the cost of launching a new enterprise.

Finance 58

Finance Term Sheet Equity Aggregator 58

Scalable Startup

MARCH 7, 2012

Investor groups are cutting out the management, bus dev, sales, and marketing professionals, trying to get raw, young engineering teams that have never negotiated a term sheet to give away their IP rights and equity for next to nothing. To reuse an overused term – Wait what? I call it harvesting youth. The compensation?

Software Review 26

Software Review Technical Review Los Angeles Due Diligence 26

Sophia Perl of Wisdom

NOVEMBER 9, 2010

For example, “I have over 10 years of software experience in this space, how do you plan to have a strong barrier to entry in this crowded space?&#. If people say it’s a hard problem, then it’s an opportunity to have a good barrier to entry and helps long-term competitive advantage. What key hires do you need?

CTO Hire 40

CTO Hire Cofounder Fractional CTO San Francisco 40

Rob Go

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 36

North America Seed Stage Early Stage Lead Investor 36

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? Weren’t you the one who went to … oh, no.

Software Review 381

Software Review Churn Rate Due Diligence New York 381

Both Sides of the Table

OCTOBER 19, 2009

My blog linked to Brad Feld’s blog because I was so grateful for his series on term sheets and he was one of the biggest reasons that as a VC I felt compelled to blog. We have also been very busy with our next release, which is due out by December 11th (but I’ll save that for a different post). That changed very quickly.

Venture Capital 274

Venture Capital Term Sheet San Diego Viral 274

Agile VC

MAY 26, 2011

This also appears as a guest post at Fortune’s Term Sheet. At the end of the process, which ran into the fall of 2003, we received term sheets from two firms and had a third which expressed interest in participating though not leading the round. How To Think About The Future. May 26, 2011. It was a $4.7M

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Both Sides of the Table

OCTOBER 17, 2009

With open source software (LAMP stack) and cloud computing infrastructure it just wasn’t that expensive to get your company going and founders just wanted to raise less money. If a VC term sheet comes in they begin their due diligence process. The contra is also true.

Software Review 283

Software Review Term Sheet Due Diligence Southern California 283

Steve Blank

APRIL 1, 2020

This article previously appeared in the Harvard Business Review. Some VC’s are walking away from signed term sheets. I listened in on a board call with an enterprise software company this week, and when the CEO said, “Our VP of sales assured me our pipeline won’t be affected.”

South Korea 334

South Korea Salary Business Model China 334

www.paulgraham.com

APRIL 28, 2010

I wassurprised recently when I realized that all the worst problems wefaced in our startup were due not to competitors, but investors.Dealing with competitors was easy by comparison. Your natural tendency when an investor says yes willbe to relax and go back to writing code. They were helpful in negotiating deals, for example.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

mashable.com

JUNE 11, 2013

We spent six months fundraising only to walk away once we had a term sheet in hand because we realized we were making enough money to sustain and grow the business on our own terms. Designed in collaboration with Code & Theory. Ultimately that felt like a much bigger marker of success than closing a round.

Cofounder 111

Cofounder Technical Review Startup Software Review 111

View from Seed

AUGUST 17, 2021

at exit due to dilution. But the general idea is that for software driven businesses, traction can create unpredictable upside that is hard to account for but should not be ignored. But in a world of power-law distributions and the near magical scale enabled by software, the potential upside far outweighs the downside in most cases.

IRR 205

IRR Dilution Founder Portfolio 205

www.vccafe.com

MARCH 11, 2013

VC Cafe highlights everything you need to know from hosting your code in hackathons to open source legal docs. s the new way to code, and quite easy to learn. You can write back end code in javascript, one language conquers all! Code Igniter. Code Hosting and Version Control. code spaces (svn). WorkingPoint.

Software Review 53

Software Review Technical Review Israel Startup 53

View from Seed

AUGUST 17, 2021

at exit due to dilution. But the general idea is that for software driven businesses, traction can create unpredictable upside that is hard to account for but should not be ignored. But in a world of power-law distributions and the near magical scale enabled by software, the potential upside far outweighs the downside in most cases.

IRR 156

IRR Dilution Founder Portfolio 156

This is going to be BIG.

OCTOBER 12, 2020

He said they’d consider any “special situations” funds I was doing—at which point I realized that he had never even looked at the deck and had zero intentions of doing any real diligence. One just got a seed term sheet for twice the valuation I put in at in the pre-seed and the other is doing $200k/month in revenue.

LP 145

LP Technical Review Software Review Valuation 145

View from Seed

AUGUST 17, 2021

at exit due to dilution. But the general idea is that for software driven businesses, traction can create unpredictable upside that is hard to account for but should not be ignored. But in a world of power-law distributions and the near magical scale enabled by software, the potential upside far outweighs the downside in most cases.

IRR 136

IRR Dilution Founder Portfolio 136