Altgate

DECEMBER 16, 2010

→ More on Liquidation Preferences Posted on December 16, 2010 by admin A long time ago I had asked a VC about what pre-money valuation he was planning to put in a term sheet he had promised to send over. One of the least understood of these key terms is the liquidation preference. One point to takeaway from [.]

Liquidation Preference 39

Liquidation Preference Pre-Money Valuation Term Sheet Valuation 39

Altgate

AUGUST 20, 2010

-King&# Approach to Term Sheet Negotiations Posted on August 20, 2010 by fnazeeri I feel like I’m in that scene from The Jerk where Steve Martin sees his name in the phone book and exclaims, “I’m somebody!&# I’m published (sorta)! Bookmark the permalink. ← Why Don’t Universities Teach Sales?

Term Sheet 39

Term Sheet Venture Capital Angel Financing Framework 39

Both Sides of the Table

JUNE 5, 2015

I am reminded of this problem every time my firm does a financing where a note went before us but more specifically I was reminded by this great post by Brad Feld to talk about the pre-money vs. post-money conversion issue. This was until about 2009 because most the investments in companies came from one, maybe two, sources.

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

Professor VC

APRIL 1, 2010

One comment made by Jason was that angels tend to be less sensitive than VCs on valuation and can potentially make it difficult to get a venture financing done at acceptable valuation. A related topic is the standardization of terms. A good comparison of the various "standard" term sheets can be found at Start-up Company Lawyer.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

www.founderinstitute.com

MARCH 2, 2010

He has been actively involved in merger, acquisition and disposition transactions with a combined value of over $1 billion, and financing/investment transactions and securities offerings worth over $600 million. Chris Dixon posted about an ideal term sheet for first round funding, which started an blogosphere discussion about terms.

Term Sheet 40

Term Sheet Liquidation Preference Vesting San Diego 40

Gust

OCTOBER 8, 2014

Cautionary note: No competent VC is actually fooled when you show up after raising $6M in seed financing and say you’re now raising an A! 5 million was always the classic definition of an A-round between the late nineties (crazy financings aside) and say 2007. Marc Andreessen (@pmarca) October 7, 2014.

Cap Table 136

Cap Table Silicon Valley Term Sheet Non-Compete 136

Professor VC

APRIL 7, 2011

This will also serve as a good pointer for all the entrepreneurs who ask why I am not interested in their company led convertible note financing round. This can make it much more difficult to get any bank financing, new investment, and trade credit. In cases where it is truly a bridge financing (i.e. Steve Bennet. at 1:33 PM.

San Jose 36

San Jose Technical Review Angel Investor Valuation 36

Both Sides of the Table

SEPTEMBER 5, 2012

Was Paul Graham right in his “high resolution” financing post? 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.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

K9 Ventures

OCTOBER 10, 2017

I’ve been an avid reader of Dan’s Term Sheet while he was at Fortune , and now Pro Rata at Axios. This post is intended to be a dynamic document, and I will attempt to update it from time to time with new questions that may arise or as financing trends evolve. Q: What amount of financing is considered Pre-Seed?

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Steve Blank

NOVEMBER 5, 2009

Unfortunately in early stage startups the drive for financing hijacks the corporate DNA and becomes the raison d’etre of the company. Reply Richard Jordan , on November 5, 2009 at 3:36 pm Said: Steve, best article yet. Reply links for 2009-11-05 « Blarney Fellow , on November 5, 2009 at 4:16 pm Said: [.]

Customer Development 262

Customer Development Developer Customer Silicon Valley 262

Austin Startup

MARCH 25, 2011

In today’s bubble-like environment, many think they are going to emerge from a summer program with a fist-full of term sheets. That company, FamigoGames, was indeed selected for our very first program in 2009. In the selection process, I get the chance to meet with founders with varying motivations. Some of them will.

Michigan 82

Michigan Term Sheet Angel Financing Austin 82

Altgate

AUGUST 16, 2010

King&# Approach to Term Sheet Negotiations → Why Don’t Universities Teach Sales? Why, in business alone, you can get a masters or PhD in marketing (sales’ evil cousin), finance, human resources and entrepreneurship (which isn’t even a business function, but rather a business practice). A “Rich-vs.-King&#

Sales 49

Sales Term Sheet Michigan Sales Cycle 49

SoCal CTO

JULY 13, 2010

How-to learn about angel/vc term sheets - Gabriel Weinberg , June 28, 2010 I think every startup entrepreneur (and angel investor) should have a good understanding of financing term sheets. Will you negotiate million dollars rounds of financing with cool VCs? Yes, even bootstrappers. People you don’t know.

Cofounder 175

Cofounder Technical Cofounder Term Sheet Startup 175

Startup Lessons Learned

MAY 31, 2019

He's been with the firm since its inception in 2009 and has overseen its rapid growth, from three employees to 150+ and from $300 million in assets under management to more than $10 billion. Learning everything you can about VC first is important for that reason, but also to ensure it’s the right form of financing for your business.

Lean 108

Lean Venture Capital Conversion IPO 108

Feld Thoughts

FEBRUARY 28, 2023

Corporate law: In Germany, most companies in general and most VC-financed companies are structured in the legal form of a “Gesellschaft mit beschränkter Haftung” (GmbH). Often, this integration results in VC-financed GmbH companies having little to do with the GmbH as envisaged by the law. Both samples are bilingual.

Germany 165

Germany Liquidation Preference Option Pool Advisory Board 165

Pascal's View

NOVEMBER 15, 2011

Dan Primack posted an article in Term Sheet last week titled Yelp This: IPO Market Is Killing It. ’ While I commented again on Dan’s article on Term Sheet , below is a more extensive response with additional facts: To be very clear, the central issues behind the systemic dysfunction in the U.S. jobs today.

IPO 31

IPO Term Sheet Marketing United States 31

Reid Hoffman

JULY 27, 2021

The Harvard Business School’s business plan competition has been running since 1998; the only competition winner that has achieved any sustained success is Cloudflare (2009). In particular, Bill Sahlman’s Entrepreneurial Finance course was excellent. It’s not like after completing the class I was prepared to negotiate a term sheet.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Reid Hoffman

JULY 27, 2021

The Harvard Business School’s business plan competition has been running since 1998; the only competition winner that has achieved any sustained success is Cloudflare (2009). In particular, Bill Sahlman’s Entrepreneurial Finance course was excellent. It’s not like after completing the class I was prepared to negotiate a term sheet.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Professor VC

JUNE 20, 2011

Financing, that is.I One truth of start-up financing is that it generally takes twice as long and twice as much money to accomplish your milestones. Most companies dont come close to their rose colored financial models prepared when going out for Series A financing. As I said up front, I have mixed emotions about the financing.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

Both Sides of the Table

SEPTEMBER 8, 2012

But Paul Graham really did have a point in his “ high resolution fundraising ” post – that there is a problem – particularly in angel financing – with herding cats. Since 2009 I have been counseling people to offer discounts to the first angel investors. You simply draft up a series seed term sheet.

Pre-Money Valuation 294

Pre-Money Valuation Finance Liquidation Preference Warrant 294

Professor VC

JANUARY 20, 2009

Tuesday, January 20, 2009. The latest statistics from VentureSource show 554 financings in Q4, down from 620 in Q3 and 718 in Q4 2007. On that front, I take pride in the second headline with news that Fliqz , where I am CFO, just closed on $6 million in Series C financing. ProfessorVC. The last blogger in Silicon Valley.

Venture Capital 28

Venture Capital Silicon Valley San Jose Bootstrapping 28

Both Sides of the Table

MARCH 30, 2016

Invoca had grown steadily and consistently since 2009 and by 2015 SaaS companies with scale had become hot – trading at a median of 7.3x Six firms had expressed strong interest, two had strong champions already trying to test price and round size and one had made it clear they were planning to submit a term sheet the following week.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

venturehacks.com

OCTOBER 21, 2010

Later that evening you review the term sheet from Blue Shirt. Reading on, the term sheet states, “The $8 million pre-money valuation includes an option pool equal to 20% of the post-financing fully diluted capitalization.&# That does work if the company gets sold before another round of financing.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Both Sides of the Table

FEBRUARY 14, 2016

When I was an entrepreneur there was no public information about how term sheets worked or how investors thought. As you can see below, investments have skyrocketed – up 300% since 2009. Why Financing in Falling Markets is So Damn Difficult. All of these are false. And so it goes.

Valuation 150

Valuation Down Round Startup Later Stage 150

SoCal CTO

JANUARY 5, 2011

500 Hats , January 10, 2010 Developing new startup ideas - Chris Dixon , March 14, 2010 Batch Processing Millions and Millions of Images - Code as Craft , July 9, 2010 jQuery Plugin: Give Your Characters a NobleCount - The Product Guy , March 23, 2010 How do the sample Series Seed financing documents differ from typical Series A financing documents?

Silicon Valley 378

Silicon Valley Startup Term Sheet Venture Capital 378

Altgate

APRIL 22, 2009

 Today,  Wilson Sonsini  announced the launch of a " term sheet generator.  Today,  Wilson Sonsini  announced the launch of a " term sheet generator." "  It's basically a web tool that creates draft preferred financing term sheets for startups.

Term Sheet 52

Term Sheet Intellectual Property Venture Capital Hawaii 52

www.quicksprout.com

NOVEMBER 1, 2010

Although I have made a decent amount of investments, I don’t consider myself an “angel investor” because I don’t search for companies to invest in, I don’t lead financing rounds, and I don’t know how to read term sheets. When will you be on this list? Literally Are you tired of creating businesses that arent making money ?

Elevator Pitch 60

Elevator Pitch Revenue Entrepreneur SEO 60

steveblank.com

JULY 8, 2011

Reply Crystal Williams , on April 12, 2009 at 10:38 am said: Hi Steve! Managewith.us - Collaborative Task Manager Mavenlink - manage project communications, documents, schedules, budgets, payments Industrial Logic – Agile eLearning Misc Office Help Google Apps – cloud mail server, calendar, docs, etc. Keep up the great work!

Software Review 110

Software Review Startup Silicon Valley Analytics 110