Startup Professionals Musings

JANUARY 24, 2021

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. Make sure everyone accurately posts their role with your startup on social media profiles, resumes, and references.

Technical Review 379

Technical Review Due Diligence Term Sheet Bankruptcy 379

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. 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. The Valuation Question. Let’s start at the end.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

SEPTEMBER 26, 2015

Perhaps they're way off in their valuation (usually far too high), or paralyzed by fear at seeing the other terms, because they have no idea what's normal, and what's worth a fight to the death (their startup's). In very early startups, which have no valuation, the term sheet may specify a convertible note.

Term Sheet 120

Term Sheet Demand Preferred Stock Liquidation Preference 120

Startup Professionals Musings

APRIL 18, 2021

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process. Some startups do nothing to prepare for the due diligence process, assuming the people and business plan documents will speak for themselves.

Technical Review 380

Technical Review Due Diligence Term Sheet Angel Investor 380

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

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. Was hoping to link to just the term sheet.

Term Sheet 41

Term Sheet Startup Angel Investor Wiki 41

VC Cafe

JANUARY 30, 2023

A well-organised data room can play a crucial role in making the process more efficient, and get the money quicker into the startup’s bank account. The post Startup 101: What goes in a startup data room appeared first on VC Cafe. SAFE note), shareholder agreements, company formation and governance documents (e.g.

Technical Review 104

Technical Review Due Diligence Cap Table Startup 104

VC Cafe

AUGUST 11, 2022

And so a large part of the VCs time is focused on the question ‘who should I invest in’ Equally important though, is the question of why should a founder/ startup take your money. If you agree that the top founders are likely to receive multiple term-sheets, then the importance of founder-investor fit increases.

Founder 187

Founder Term Sheet Cofounder Venture Capital 187

ReadWriteStart

MARCH 31, 2020

Venture capital investment is one of the top places startups look out for when seeking funding for their business alongside other popular options like angel investing and crowdfunding. Therefore, startups can expect investors to make significant adjustments based on lessons learned last year, which are rather harsh.

Technical Review 175

Technical Review Artificial Inteligence Startup Term Sheet 175

Startup Professionals Musings

JULY 11, 2021

As an angel investor to startups, I’m still surprised to find entrepreneurs who expect investors to give them money, and assume no strings attached. Angel and venture capital money always comes with ownership and management implications, starting with the obvious ones outlined in the term sheet for the deal.

Term Sheet 433

Term Sheet Advisory Board Liquidation Preference Startup 433

Hunter Walker

AUGUST 7, 2021

My job as an early stage investor includes translation services, specifically helping startup founders take what they are hearing from potential investors and providing a read on whether that VC is actually ready to make an offer. Why VCs Are Always ‘Very Excited’ About Your Progress But That Doesn’t Mean Anything Until They Make an Offer.

Term Sheet 153

Term Sheet Due Diligence Reputation Early Stage 153

Both Sides of the Table

MARCH 17, 2012

I’ve started a series on negotiations in startups. 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. Nor did their lawyer.

Term Sheet 301

Term Sheet Ireland Cofounder Finance 301

Both Sides of the Table

SEPTEMBER 30, 2015

What Can You Do if a VC Pulls Their Term Sheet? A term sheet is not a legally binding document. So if you’re a VC – you better have a pretty damn good reason for pulling out of deal after offering a term sheet. I was asked to answer this exact question on Quora and I did so some time ago.

Term Sheet 150

Term Sheet Warrant Founder Entrepreneur 150

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.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Angel Investor 223

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. The check won’t clear in time to save you.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Many myths surround the subject of startup funding. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. You must have seen a lot of startups giving out promotions, discounts, and incentives at the early phase of their business.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

SoCal CTO

JANUARY 5, 2011

Some really great stuff in 2010 that aims to help startups around product, technology, business models, etc. 500 Hats , February 1, 2010 When to Use Facebook Connect – Twitter Oauth – Google Friend Connect for Authentication? 500 Hats , February 1, 2010 When to Use Facebook Connect – Twitter Oauth – Google Friend Connect for Authentication?

Silicon Valley 378

Silicon Valley Startup Term Sheet Venture Capital 378

Hunter Walker

MAY 17, 2024

Hunter Walk: Textio , the startup you founded and CEO’ed until a few months ago, is almost 10 years old. A recent essay covered the ‘AI gold rush’ and as it related to startups operating in this area, very much ‘caution ahead’ in terms of building a sustainable, differentiated business. The first one is simply focus.

Cofounder 108

Cofounder Founder Technical Review Seattle 108

Both Sides of the Table

JULY 22, 2010

Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. No hidden terms.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Startup Professionals Musings

JULY 26, 2013

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process. Some startups do nothing to prepare for the due diligence process, assuming the people and business plan documents will speak for themselves.

Technical Review 242

Technical Review Due Diligence Startup Term Sheet 242

Both Sides of the Table

MAY 10, 2018

When you finally get a term sheet you get three. When a VC submits a term sheet all of those angels & seed funds who wanted to fund you “once you got a lead” are your new best friends. When you get your term sheet your existing investors suddenly fight over prorata rights.

Term Sheet 232

Term Sheet France Technical Review Restful 232

Startup Professionals Musings

SEPTEMBER 10, 2014

Even though the color of their money is always green, all startup investors are not the same. 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. Personally visit another startup funded by this investor. It’s no fun for either side.

Technical Review 257

Technical Review Due Diligence Term Sheet Offshore 257

Both Sides of the Table

SEPTEMBER 25, 2010

Having re-read it, I believe his real premise instead is, “Fixed-size, multi-investor angel rounds are such a bad idea for startups that one wonders why things were ever done that way.&#. Either would be fine with startups, so long as they can easily change their valuation. When I’m in, I’m in. rings true to me.

Finance 286

Finance Term Sheet Technical Review Warrant 286

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. Make sure everyone accurately posts their role with your startup on social media profiles, resumes, and references.

Technical Review 120

Technical Review Due Diligence Startup Term Sheet 120

This is going to be BIG.

APRIL 13, 2022

Whenever I submit a term sheet, I always caveat it by saying the following: “This is the one time we’re completely misaligned. VCs aren’t experts at every aspect of a startup at the same level across the board. Founders seem to get that. What I see as your expertise is X and I trust your feedback in that area implicitly.

Founder 166

Founder Fiji CTO Hire Term Sheet 166

Startup Professionals Musings

MARCH 12, 2023

They fail to realize that the considerations are quite different for each, which can make or break their investment efforts, and ultimately their startup. More importantly, the focus on numbers tends to hide other more subjective issues that could be more important for any given startup. How big is your startup opportunity?

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

SoCal CTO

JULY 13, 2010

Some great content around the intersection of startups and being a Startup CTO in June this year. This continues my series of posts: Top 29 Startup Posts May 2010 Startup CTO Top 30 Posts for April 16 Great Startup Posts from March There was some really great content in June. It shows a lack of interest.

Cofounder 175

Cofounder Technical Cofounder Term Sheet Startup 175

Startup Professionals Musings

JUNE 29, 2012

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process. Some startups do nothing to prepare for the due diligence process, assuming the people and business plan documents will speak for themselves.

Technical Review 245

Technical Review Due Diligence Term Sheet Startup 245

Both Sides of the Table

APRIL 19, 2011

I recently sat down with Matt Coffin , the founder of LowerMyBills, which sold for $400 million but was very nearly a bankruptcy only a few years early, and talked “startups.&#. Matt is one of the most transparent, focused & honest startup guys you’ll meet. Or read the quick, informative summary below the image!

Acquisition 304

Acquisition Warrant Customer Term Sheet 304

NZ Entrepreneur

SEPTEMBER 9, 2024

LegalVision is a commercial law firm with 250+ team members specialising in helping startups, SME businesses and large corporates. Key services and resources Raising Capital : Unless you’re bootstrapping, you’ll need to raise capital to give your startup the runway to take off and succeed. Register for upcoming webinars on our website.

Cap Table 52

Cap Table Intellectual Property Technical Review New Zealand 52

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

Startup Professionals Musings

JULY 16, 2023

None normally work for or provide funds for early-stage startups. For these fees, they will develop a business plan, solicit investors, and negotiate term sheets to a closing. Many investment banks even call themselves “boutiques.” Commercial banking is also known as business banking.

Early Stage 182

Early Stage Silicon Valley Private Equity Initial Public Offering 182

Both Sides of the Table

JULY 29, 2009

You finally get your first term sheet. They’re giving me 48 hours to sign the term sheet or it expires? Will they really pull the term sheet if I don’t sign? Will they really pull the term sheet if I don’t sign? First, every term sheet has an expiration date in it.

Term Sheet 197

Term Sheet Technical Review Due Diligence Venture Capital 197

View from Seed

APRIL 30, 2015

There’s been a lot of digital ink spilled around the various types of capital available to startups today. As a startup grows, venture debt becomes a viable option to continue that growth. Glen is an active contributor to the local tech ecosystem and well-versed in how and when startups can use venture debt to their advantage.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

NZ Entrepreneur

AUGUST 4, 2021

And if you’re a high-growth startup looking to get off the ground or expand, it’s likely you’ll need an injection of capital to do that. 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.

Technical Review 63

Technical Review Software Review Founder Due Diligence 63

Both Sides of the Table

SEPTEMBER 5, 2012

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. Some thoughts on raising angel money. That’s right.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

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