This is going to be BIG.

MAY 26, 2022

They’ll obviously see the value of what you built and will be compelled to offer a term sheet on the spot. Well, at 125 words per minute, 48 minutes of podcasting will net you a chapter. So, if you were actually trying to turn your podcast content into a book, it would probably take you between 2-3 podcasts to net a chapter.

Founder 103

Founder .Net Term Sheet Aggregator 103

Up and Running

FEBRUARY 19, 2014

We all know it’s better to seek good advice and have a safety net before you need it. Term Sheets. You don’t necessarily need a lawyer to draft a brand new term sheet from scratch, but you do want the experienced eyes of a seasoned startup lawyer on your side. - Adam Lieb , Duxter.

Non-disclosure Agreement 97

Non-disclosure Agreement NDA Term Sheet Early Stage 97

Startup Professionals Musings

NOVEMBER 11, 2010

But I have found that making the right choice at the right time can have a major impact on your long-term success, and the decision process is complex. Angels are typically high net-worth individuals, investing their own money, interested more in early or “seed” financing of amounts starting as low as $25K. The basics are simple.

IRR 225

IRR Startup Term Sheet Angel Investor 225

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. Founder Earnings = Net Income + any amount of founders’ salaries over a certain threshold. We’re also regularly following-on for existing portfolio companies.”.

Revenue 60

Revenue Technical Review Software Review Equity 60

Both Sides of the Table

JULY 19, 2011

On balance I usually prefer to recruit people from my network both in terms of saving costs as well as hiring people I know & trust. That said, there are times where you need to cast a wider net. Lawyers : So you got your big term sheet signed and you’re now in the drafting. No “back room deal.&#.

Term Sheet 319

Term Sheet PR Liquidation Preference Stock Options 319

OnlyOnce

APRIL 27, 2021

Your best bet is to do it early in the process before you have a term sheet, and do it as an exploratory conversation. The net of it is that as CEO of a venture-backed company, you wield an enormous amount of (mostly soft) power around the composition of your board – probably a lot more than you think.

Vesting 48

Vesting Cofounder Startup Term Sheet 48

Rob Go

JUNE 17, 2014

In almost every financing round, there is an important stipulation in the term sheet that talks about the employee option pool that will be created in tandem with the financing. It has a meaningful impact on your net dilution, and I’m often surprised how often founders don’t consider this a malleable term.

Option Pool 65

Option Pool Dilution .Net Term Sheet 65

Gust

OCTOBER 8, 2014

I had very smart entrepreneurs where I gave the company $2-3 million and we raised anywhere between $3-5 million and when I put A-round in the term sheet they had their lawyers change it back to seed rounds. If you have raised $2-4 million from a bunch of high-net-worth individuals I simply don’t see it as an A-round.

Cap Table 136

Cap Table Silicon Valley Term Sheet Non-Compete 136

Business Plan Blog

NOVEMBER 13, 2013

The above definition of accredited investors is being currently reviewed by the SEC in terms of current financial thresholds of income and net worth. It gives in depth examples & templates explaining documents like Term Sheet, Cap Table, Convertible Securities plus the importance of 83(b) filing.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

Rob Go

APRIL 19, 2017

Just last week, Axios announced that Stephen Marcus is raising a fund called Riot Ventures and Term Sheet announced that Nilanjana Bhowmik from Longworth will be joining Converge. This actually doesn’t represent as many net new entrants as it seems, as a number of these investors are from other less-active lifecycle firms.

Early Stage 34

Early Stage Boston Artificial Inteligence Term Sheet 34

Hunter Walker

JANUARY 23, 2015

This is a conversation which should happen before the term sheet has been signed). Since any goal worth having is worth measuring, we’ve got our own version of Net Promoter Score for whether we’re delivering for founders. It’s imperfect but works for us at this stage.

Cofounder 48

Cofounder Term Sheet Metrics .Net 48

Tim Keane

MARCH 8, 2010

A philosophy of valuations and term-sheets » March 08, 2010.   The premise is that having sufficient net worth makes the investor more sophisticated.    The premise is that having sufficient net worth makes the investor more sophisticated.  Startups and angels: Along the way to success.

Accredited Investor 60

Accredited Investor Wisconsin Angel Investor Bootstrapping 60

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. What Are the Key Issues for Founders? First, founders should push for a low multiple of the Original Purchase Price (e.g.,

Term Sheet 60

Term Sheet Conversion Rights Venture Capital Liquidation Preference 60

Both Sides of the Table

SEPTEMBER 2, 2009

The net effect for [my company] for example is we are now doing reasonably well. Many term sheets ensued. I had that against the backdrop of several term sheets. Founders however are asked to take low salaries and never really get back the time they worked for free. year old boy and another one due in 1 months.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Reid Hoffman

JULY 27, 2021

The risk-averse argument is that a strong network is a safety net. Networks are both safety nets and trampolines. It’s not like after completing the class I was prepared to negotiate a term sheet. I think a lot of entrepreneurs don’t fully understand how venture capital works.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Reid Hoffman

JULY 27, 2021

The risk-averse argument is that a strong network is a safety net. Networks are both safety nets and trampolines. It’s not like after completing the class I was prepared to negotiate a term sheet. I think a lot of entrepreneurs don’t fully understand how venture capital works.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Berkonomics

DECEMBER 17, 2020

There is an exemption from the requirements that these investors be accredited with net worth or income minimums to qualify legally to invest in your company. You will be given a “term sheet” during the process, calling out the terms proposed for the investment. We’ll call these “inside angels.”

Equity 62

Equity Finance Liquidity Event Angel Groups 62

Eric Friedman

AUGUST 18, 2021

If you aren’t doing things which are sufficiently crazy, you’ll never generate a 5x net fund. That means we want to put up 5x net funds, we want to be investing in owning non-trivial quantities, generally at least 10%, of companies. Most venture funds return at best 1x net over 10 years. You have to know that going in.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Startup Professionals Musings

JUNE 6, 2022

This requires a simple signature that you have a net worth of at least $1M or have made at least $200K each year for the last two years. Many negotiate a board seat for themselves as part of the investment term sheet. Think long-term. Most angel investors only invest in companies and people local to their geography.

Liquidity Event 300

Liquidity Event Angel Investor SEC Accredited Investor 300

Steve Blank

FEBRUARY 26, 2020

Series B is about proving your net revenue model (can you be profitable?). You’ll see a Term Sheet, Stock Purchase Agreement, Amended and Restated Certificate of Incorporation, Investors’ Rights Agreement, Right of First Refusal and Co-Sale Agreement and a Voting Agreement.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

This is going to be BIG.

FEBRUARY 21, 2019

While most of the money that goes into VC funds comes from institutions that are highly experienced in the asset class, some family offices and high net worth individuals also invest in VC. If you’re a Series A fund in NYC, and you, USV, Firstmark, RRE, etc all submit term sheets, who gets in and in what order?)

Accredited Investor 106

Accredited Investor Term Sheet Deal Flow .Net 106

www.paulgraham.com

APRIL 28, 2010

One experienced CFO said: The better ones usually will not give a term sheet unless they really want to do a deal. As oneVC told me: If you were talking to four VCs, told three of them that you accepted a term sheet, and then have to call them back to tell them you were just kidding, you are absolutely damaged goods.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Both Sides of the Table

AUGUST 17, 2009

This is part of my ongoing series “ Pitching a VC “ There’s a great meme developing this morning on the need to simplify funding terms and documents. The meme was kicked off by Chris Dixon with this post saying that term sheets need to be simplified and align investor / founder interests.

Founder Vesting 252

Founder Vesting Vesting Founder Term Sheet 252

Startup Professionals Musings

SEPTEMBER 6, 2019

This requires a simple signature that you have a net worth of at least $1M or have made at least $200K each year for the last two years. Many negotiate a board seat for themselves as part of the investment term sheet. Think long-term. Most angel investors only invest in companies and people local to their geography.

Liquidity Event 224

Liquidity Event SEC Entrepreneur Accredited Investor 224

abovethecrowd.com

APRIL 20, 2016

The Sharks Arrive With Dirty Term Sheets. Dirty” or structured term sheets are proposed investments where the majority of the economic gains for the investor come not from the headline valuation, but rather through a series of dirty terms that are hidden deeper in the document. Who are the Sharks?

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Both Sides of the Table

OCTOBER 9, 2013

You might net $1 million and that would change your life. I had foregone my VC term sheets to accept an offer yet I knew it wasn’t 100% probability to close – it never is. If you don’t you may have to lay off staff in eight weeks. How can you process that? Even more difficult. Should you?

San Francisco 405

San Francisco Term Sheet Flash .Net 405

Startup Lessons Learned

AUGUST 17, 2020

We literally started just as we got our first term sheet for investment on the day that we graduated from business school in June of 2006. And it was actually the same time that Kristen was giving birth to her first baby, literally the same day that we received the term sheet and graduated from business school.

Cofounder 60

Cofounder Security Founder Entrepreneur 60

venturehacks.com

SEPTEMBER 22, 2011

For example, they may give you an exploding term sheet. Why would you do any transaction that was a net lose for the company, in the sense that it didn’t yield a multiple m such that m(1/(1 – n)) > 1? But overall, an offer from a top-tier firm increases your valuation. 4 responses so far · Comments RSS. #.

Equity 40

Equity Cap Table Valuation RSS 40

David Teten

DECEMBER 3, 2019

Atlassian open-sourced their M&A term sheet , a very aggressive move which helps smooth the M&A process, by reducing the number of degrees of freedom in a negotiation. This move also undoubtedly created more inbound M&A opportunities for them. .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Startup Professionals Musings

SEPTEMBER 16, 2017

This requires a simple signature that you have a net worth of at least $1M or have made at least $200K each year for the last two years. Many negotiate a Board Seat for themselves as part of the investment Term Sheet. Think long-term. Most angel investors only invest in companies and people local to their geography.

Liquidity Event 184

Liquidity Event SEC Accredited Investor Angel Investor 184

techcrunch.com

NOVEMBER 2, 2010

I wouldn’t recommend this if you’re meeting with more than 2 people, but this meeting was one of my best and resulted in a term sheet. Containing the numerical story of the company so far including revenue if any (also net income, current monthly burn). Why did this work? Slide 2: The Numbers. Humans love patterns.

Technical Review 100

Technical Review San Francisco Framework Term Sheet 100

Startup Professionals Musings

NOVEMBER 1, 2013

This requires a simple signature that you have a net worth of at least $1M or have made at least $200K each year for the last two years. Many negotiate a Board Seat for themselves as part of the investment Term Sheet. Think long-term. Most Angel investors only invest in companies and people local to their geography.

Accredited Investor 219

Accredited Investor Liquidity Event SEC Stock 219

www.payne.org

SEPTEMBER 22, 2011

UPDATE: If youre a founder or near-founder, your equity terms are likely defined by the funding terms negotiated with the investors. For a very good summary of investor terms, see Brad Felds writeups on term sheet terms.

Equity 56

Equity Employee Vesting Preferred Stock 56

Startup Professionals Musings

SEPTEMBER 24, 2012

This requires a simple signature that you have a net worth of at least $1M or have made at least $200K each year for the last two years. Many negotiate a Board Seat for themselves as part of the investment Term Sheet. Think long-term. But these requirements go away with the new Crowdfunding JOBS Act just passed into law.

Portfolio 228

Portfolio Accredited Investor Liquidity Event SEC 228

Startup Professionals Musings

FEBRUARY 6, 2015

This requires a simple signature that you have a net worth of at least $1M or have made at least $200K each year for the last two years. Many negotiate a Board Seat for themselves as part of the investment Term Sheet. Think long-term. Most Angel investors only invest in companies and people local to their geography.

Accredited Investor 120

Accredited Investor Liquidity Event SEC Entrepreneur 120

Gust

OCTOBER 26, 2011

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. Having made it almost to the end of our sample term sheet: Documentation. Returning to our sample term sheet: Note Purchase Agreement.

Finance 79

Finance Term Sheet Covenant Accredited Investor 79

Both Sides of the Table

APRIL 3, 2010

As a reminder, VC funds are comprised of money from LP’s (Limited Partners) that include university endowments, pension funds, high-net-worth individuals, insurance companies and large corporations. In a single fund of $100 million you might have 30 difference LPs.

Pre-Money Valuation 226

Pre-Money Valuation Venture Capital LP Term Sheet 226