View from Seed

AUGUST 12, 2015

The game plan is then to show accelerating user growth across a variety of user segments and understandable/declining acquisition costs. At some point, investors may start to change their mind about the market size. Listen to episode #8 of Traction via iTunes or SoundCloud , or get all links and context via this blog post.

Seed Stage 120

Seed Stage Marketing Angel Investor Term Sheet 120

View from Seed

AUGUST 12, 2015

The game plan is then to show accelerating user growth across a variety of user segments and understandable/declining acquisition costs. At some point, investors may start to change their mind about the market size. Listen to episode #8 of Traction via iTunes or SoundCloud , or get all links and context via this blog post.

Seed Stage 120

Seed Stage Marketing Angel Investor Term Sheet 120

David Teten

SEPTEMBER 6, 2015

We never seek any rights to give Amex preferential treatment at the time of a potential acquisition. There is a possibility that Amex may explore acquisitions within the Amex Ventures portfolio, but those discussions will be on market terms similar to those with other potential acquirers.”. Some corporate funds now lead rounds.

Venture Capital 60

Venture Capital Balance Sheet Technical Review Portfolio 60

The Startup Toolkit

NOVEMBER 4, 2011

Regarding structure, the first deal is a rolling round with committed lead investors. The former means your friends won’t hear about your company until the acquisition. Next, we check that we’re safe from any particularly onerous terms like participation preferred. Looks good. your website.

Term Sheet 31

Term Sheet Dilution Participating Preferred B2C 31

www.paulgraham.com

OCTOBER 23, 2010

In the future, angel rounds will less often be for specific amountsor have a lead investor. forstartups was to find one angel to act as the lead investor. Youdnegotiate a round size and valuation with the lead, whod supplysome but not all of the money. Then the startup and the lead wouldcooperate to find the rest.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

Duct Tape Marketing

FEBRUARY 20, 2014

If you’re asking for dollars and you have no traction, what you’re really saying is you want investors to gamble on your experiments. Not Knowing Your Cost Of Customer Acquisition. Knowing how much it costs to acquire a customer is debatably the most important variable in an investor’s equation. Having a Weak Team.

Kansas City 70

Kansas City Due Diligence Arizona Kansas 70

The Startup Toolkit

NOVEMBER 4, 2011

Regarding structure, the first deal is a rolling round with committed lead investors. The former means your friends won’t hear about your company until the acquisition. Next, we check that we’re safe from any particularly onerous terms like participation preferred. Looks good. your website.

Term Sheet 20

Term Sheet Dilution Participating Preferred B2C 20

Berkonomics

FEBRUARY 13, 2014

Back when we were all trying to figure out the real value of traffic on the web, we investors – and acquiring companies – got a bit crazy with metrics used to value acquisitions and investments. Great revenue projections from a small user base lead to worries over sustainability.

Metrics 83

Metrics Revenue Advertising Internet 83

This is going to be BIG.

JANUARY 20, 2014

With the multi-billion dollar acquisition of Nest, people are talking a lot these days about the connected home. As the lead investor in the company''s seed round, you''d think I''d be really bullish about the connected home, especially after their record Indiegogo pre-sale netted them almost $2 million in purchases.

Venture Capital 104

Venture Capital Cloud Internet Web 104

The Equity Kicker

AUGUST 24, 2012

This comes on top of a lot of other negative news, including leading investors selling shares in the companies above at minimal profits, and CalPERS, traditionally one of the largest investors in venture capital, announcing that they have made a terrible 0.0 per cent return on venture over the last ten years. With its $1.5

IPO 101

IPO Valuation Silicon Valley Venture Capital 101

Gust

DECEMBER 27, 2012

You should know every metric regarding customer acquisition, conversion and retention. Accelerators typically provide several months of intensive mentoring, at the end of which they host a Demo Day to introducing all their graduating companies to a large number of local angel investors.

Software Review 164

Software Review Term Sheet Technical Review Angel Investor 164

ithacaVC

NOVEMBER 14, 2014

Acquisitions of other companies like you. This is helpful in determining a valuation, since it shows real liquidity for what companies will pay for a company like you, instead of what an investor will pay to invest. The valuation only exists if investors validate it. Domain expertise can also help.

Valuation 69

Valuation Startup Down Round Early Stage 69

Bryce Dot VC

FEBRUARY 12, 2015

In the event you chose to raise more money from traditional VCs, our initial investment would convert into pre-money preferred shares (assuming you’re issuing preferred shares to the new, lead investor) in your company and we’d have a pro rata right to participate in the round to preserve our pre-determined ownership level.

San Francisco 40

San Francisco Distribution Equity Delaware 40

The Next Web

OCTOBER 7, 2013

You might assume the lead investor wants a 20 percent stake and 15 percent option pool each time there’s a Series ‘Blah’ every 12 to 18 months, but this is admittedly too simple. Are they especially acquisitive? N: exit size. Examine your startup’s likely potential acquirers. Are there many of them? How much do they cough up?

Engineer 129

Engineer Dilution Option Pool Vesting 129

Reid Hoffman

JANUARY 26, 2021

This is one of the reasons why the best practice for a startup is to raise investment rounds from different lead investors rather than simply doing internal rounds, even if an internal round requires less work. One of the things a financing round brings is an opportunity to strengthen the startup’s overall network.

Startup 36

Startup Equity Early Stage Green 36

David Teten

JANUARY 10, 2012

He is an active angel with many successful angel investments including: Rent.com, (purchased by Ebay in 2005 for $415 million), Golfnow.com (purchased by Comcast in June 2008), and Lifelock (lead investors include Bessemer Venture Partners and Kleiner Perkins Caufield & Byers). and Tweetdeck (purchased by Twitter in June 2011).

Technical Review 128

Technical Review Technology North Carolina Switzerland 128

crowdSPRING Blog

AUGUST 4, 2010

Optimizing your Customer Acquisition Funnel – [link]. Optimizing your Customer Acquisition Funnel – [link]. Lead Investors, Dipshit Companies, and Funding Every Entrepreneur – [link]. Legal risks and dangers of $99 logo stores – [link]. If You Build It, They Won’t Come – [link].

Social Media 92

Social Media Small Business Design Media 92

Gust

OCTOBER 26, 2011

This is the norm for West Coast deals, but it’s often the case in dealing with East Coast investors (more commonly for VC financing rounds rather than angel seed rounds) that the lead investor wants its lawyers to draft the documents. merger or acquisition).

Finance 79

Finance Term Sheet Covenant Accredited Investor 79

The Startup Lawyer

JANUARY 6, 2011

Do you look at portfolio companies as future acquisition targets? While we definitely understand that AOL is a large media company and acquisitive, we’re not really involved in those discussions. We co-invest with people we know and don’t ask for any egregious terms above and beyond the lead investors terms. Not really.

Early Stage 58

Early Stage LP Later Stage Balance Sheet 58

Venture Chronicles

JULY 16, 2010

What happens is that the large fund will exercise their majority position in the class to force an orderly shutdown of the company, return of capital to investors, and sale of the intellectual property, if any. This scenario played out just yesterday with a company I am familiar with and the result has been devastating.

Due Diligence 28

Due Diligence Term Sheet Limited Partner LP 28