Both Sides of the Table

FEBRUARY 8, 2010

But what about once you have a term sheet? My chips were down in late 2000 / early 2001. As in real life – those that rush into marriage often find out what their partner is really like after the fact. I wrote a post linked as follows about how to build relationships with VCs over time. My story briefly. Except GRP.

Venture Capital 288

Venture Capital Term Sheet Cofounder Partner 288

Gust

SEPTEMBER 17, 2014

Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. Objectively.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

SEPTEMBER 13, 2009

We had 6 term sheets in no time. 2001-2004 were very humbling but we built a real company. We were it in Europe: B2B. We appeared in a prominent article in the Financial Times. The phones rang off the hook (we didn’t even think about hiring somebody to answer them). We closed a $16.5 million A round. Off to the races.

South Africa 310

South Africa Europe Disintermediation Poland 310

Feld Thoughts

JUNE 1, 2015

In contrast, I’ve known and worked with Matt since 2001 when I first invested in his company Return Path (well – it’s a little more complicated than just an investment – see my post Return Path Launches Email Intelligence from 2012 where I recounted some of the story.).

Startup 70

Startup Term Sheet Merger Finance 70

Both Sides of the Table

FEBRUARY 25, 2010

We had many term sheets (it was 1999 and we had a pulse) and we were deciding which one to take. We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. We ended up agreeing a term sheet for $16.5 I lived through this again September 2001.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Both Sides of the Table

SEPTEMBER 2, 2009

In my first company I had to raise money in April 2001 or die. Many term sheets ensued. I had that against the backdrop of several term sheets. And importantly you start thinking about your next gig. That’s when the VC has lost. I know because I’ve been there.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Professor VC

FEBRUARY 12, 2015

Those that managed companies in 2008 or thirteen years ago in 2001 know exactly how fear feels. The current valuation of $2B is 3,000X the proposed post-money valuation of that seed term sheet. Although we may have not reached the level of observing obvious greediness, there is most certainly an absence of fear.

Las Vegas 28

Las Vegas IPO Pre-Money Valuation Valuation 28

Eric Friedman

AUGUST 18, 2021

Dan Kimerling: Yeah, I mean the leading indicator of that problem would be that I put out term sheets and they’re not picked up because entrepreneurs choose to work with competitors of mine that have platform services. Dan Kimerling: I love 2001: a Space Odyssey. That is not happening. On Dan’s Favorite Books.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Both Sides of the Table

JANUARY 16, 2012

I raised money as an entrepreneur, like you, in 1999, 2000, 2001, 2003 and 2005 for two different companies. If they see you when you’ve already got your first term sheet and they’ve got 3 weeks to decide then by definition they have no relationship with you. I’ve raised seed rounds and A-D rounds.

Developer 366

Developer Silicon Valley PR Las Vegas 366

Professor VC

JANUARY 20, 2009

million for the year, which is the first time it has been below $5 million since 2001, a sign that capital efficiency will be even more important than it has. The funding search began the day after Labor Day and continued throughout the fall as the environment continued to worsen, and resulted in a term sheet the day before Thanksgiving.

Venture Capital 28

Venture Capital Silicon Valley San Jose Bootstrapping 28