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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

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
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Time is the Enemy of All Deals

Both Sides of the Table

When I was raising money for my first company we had closed a seed round in 1999 and were working on our A round. We had many term sheets (it was 1999 and we had a pulse) and we were deciding which one to take. We ended up agreeing a term sheet for $16.5 It was December 1999. You never know.

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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

These days there are many lawyers that will do equity deals cheaply as long is it is a standardized, simplified term sheet, early stage, no serious investor / management debates, limited IP / customers / due diligence and as long as they perceive you as a “hot&# company that’s likely to need legal services for many years ahead.

Finance 286
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LinkedIn: The Series A Fundraising Story ? AGILEVC

Agile VC

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. This is my 2nd time trying this, first time was in 1999.

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Brad Feld Drops Knowledge. Here’s What He Said …

Both Sides of the Table

One of the successful investments was a company called Nigenisis, which ended becoming a public company in 1999. The following is a brief series of quotes from just ten of the approximately 30 different topics discussed in this incredible interview. Is that when it became big? So I was an Angel investor from 1994 to 1996.

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Venture Deals 4e German Edition

Feld Thoughts

The boom years of 1998 (79 IPOs), 1999 (175 IPOs), and 2000 (142 IPOs) are long gone. Samples: The samples in the Annex of the German edition, i.e., the Term Sheet and the Letter of Intent, are essentially based on the samples of the U.S. The lack of conversion rights must also be considered when structuring voting rights.

Germany 165
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Retro: My Favorite Blog Post on Raising VC

Both Sides of the Table

I had previously raised VC in 1999, 2000, 2001 and 2005. 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. I had kept a personal blog for more than a year and was new at keeping a professional blog.