article thumbnail

One Book Every Entrepreneur and VC Should Own

Both Sides of the Table

When I first started as a startup CEO in 1999 there were no guides on raising venture capital. But know that every term in your term sheet is there as a result of some dispute of the past between shareholders or between shareholders & management. Or what “participating preferred&# stock is and how it can screw you.

article thumbnail

Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

The VCs basically have liquidity in management fees along the way, in the sense they get paid decently along the way. But the day after you’ll wake up and see yourself more as a manager than an owner. I took money with a 3x participating preferred liquidation preference with 8% compounded interest annually.

Founder 329
article thumbnail

Venture Deals 4e German Edition

Feld Thoughts

In addition, there are the managing directors as executive bodies. In the VC sector, it is common to introduce a third body in addition to the shareholders’ meeting and the management. The boom years of 1998 (79 IPOs), 1999 (175 IPOs), and 2000 (142 IPOs) are long gone.

Germany 165