Startup Professionals Musings

JANUARY 27, 2012

Entrepreneurs sometimes assume an initial agreement with an Angel is a commitment, so they start spending before any money is received. It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Define equity type.

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Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 223

Business Plan Blog

NOVEMBER 13, 2013

Most startup founders do not have enough capital to launch their companies and need to raise money at some point. Raising Angel Capital. Individual investors who provide financial funding to startups are called ‘Angel Investors.’ Raising Seed Capital. Convertible Debt Financing.

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Finance Accredited Investor Angel Investor Seed Capital 93

Startup Professionals Musings

SEPTEMBER 14, 2010

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Define equity type.

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Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Up and Running

DECEMBER 1, 2015

Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. It’s called restricted stock because it often comes with restrictions, such as vesting. See Also: 10 Tips for Dealing With Startup Stock Options.

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Version One Ventures

APRIL 6, 2021

The company expects its direct listing to occur on April 14, 2021 with its Class A common stock trading on the NASDAQ under the ticker symbol COIN. contribution was made by various VCs and prominent angel investors to the Nexus Mutual foundation. If you missed it, you can read our announcement here. Opyn raised $6.7M

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Portfolio SEC Common Stock Angel Investor 60

www.mattbartus.com

SEPTEMBER 24, 2011

Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. Sometimes the consultant has a reasonable basis to think this, since lean startups are programmed to get things for free and may call on the consultant from time to time for free advice. Quora Answers.

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The Startup Lawyer

FEBRUARY 4, 2011

Great news — your startup just got accepted to an incubator! But before your startup signs up and cashes that $[XX,000] check, your startup’s co-founders should sit down and evaluate the incubator’s offer. Pre-money valuations startups receive from incubators are typically low…really low.

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Incubator Pre-Money Valuation Option Pool Advisory Board 105

Both Sides of the Table

APRIL 14, 2010

Liquidation preference is the amount of money that an investor gets paid before the common stock (e.g. management, founders, angel investors) get any money. Your existing investors tell you, “Don’t worry. But pass they will. Brain damage. Reputation.

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Venture Capital Liquidation Preference Common Stock Pre-Money Valuation 289

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. By Tim Keane, Angel Investor, Golden Angels Investors, LLC. « Power of Angel Investing in Milwaukee | Main.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.

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Term Sheet Valuation Dividend Liquidation Preference 68

Austin Startup

OCTOBER 18, 2017

Background Reading: Should Non-SV Founders use SAFEs in Seed Rounds? Angels” A recurring theme of this blog is that the advice and strategy you take for fundraising needs to be right-sized and contextualized for where you are located. Because by an order of magnitude Silicon Valley has the most startups, VCs, large exits, etc.,

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Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). Certain angel investors refuse to do convertible debt deals, but will be okay if there is a price cap. The company is obligated to pay $10K for investors counsel.

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Finance Software Review Term Sheet Liquidation Preference 70

Growthink Blog

APRIL 7, 2010

million from three individual angel investors and one early-stage venture capital fund. Your Series A round is typically the first series of stock issued after common stock (which is typically issued and/or sold to company founders, employees, friends and family, and initial angel investors).

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Angel Investor Preferred Stock Venture Capital Common Stock 54

Both Sides of the Table

SEPTEMBER 5, 2012

When convertible debt first started being introduced as a “faster, cheaper way to get startups funded” they didn’t have pricing built into them. In fact, most early investor work hard to help their startups get to the next level so it makes no sense for the angel investor and founders to be at odds.

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Ratchet Liquidation Preference Equity Stock 354

thestartuplawyer.com

FEBRUARY 24, 2010

Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM He obviously never launched a startup and got shafted by a co-founder. He obviously never launched a startup and got shafted by a co-founder.

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Gust

JULY 23, 2012

However, for investors and founders, it may be helpful to think outside the box when it comes to giving. Q: Wouldn’t a contribution of early-stage company stock have a very small impact? In fact, the contribution of early-stage company stock can have tremendous impact. Q: How does the tax deduction work?

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Stock Capital Gains Warrant Stock Options 114

Scott Edward Walker

SEPTEMBER 21, 2011

Indeed, the ideal investor is an experienced, sophisticated angel who can add substantial value through his or her domain expertise and/or rolodex. A sophisticated angel investor understands how the startup game is played and the role that he plays. What about issuing shares of common stock?

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www.paulgraham.com

APRIL 28, 2010

Want to start a startup? A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. Few startups get it quite right. If your friends or family happen to be rich, the line blurs betweenthem and angel investors.

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Technical Review Startup Software Review Angel Investor 76

Gust

OCTOBER 21, 2011

This week we move on to something near and dear to the hearts of entrepreneurs and investors alike: The exit, more formally known as a “ liquidity event.” Entrepreneurs generally don’t ask for this kind of language, but most sophisticated investors will insist on it in one form or another.

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Finance Pre-Money Valuation Term Sheet Liquidity Event 79

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. So, if you’re an investor or the creator of a new business, read on. Common stock.

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Valuation Equity Warrant Common Stock 108

Growthink Blog

MAY 10, 2012

Nevertheless, this is when you get the startup money to kickstart your business with the bare essentials needed to begin making and fulfilling your first sales. For most of my readers, the main concern will be preparing your business for angel financing until the time is right for venture capital. This video explains more.

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Professor VC

JULY 25, 2013

I''m a strong believer in fairness (although my daughters may not agree) and investors and entrepreneurs working together as a team to create something valuable to all stakeholders (customers, employees, founders, investors). Startup outcomes tend to be very binary. Seems like my rant is picking up steam now.

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Term Sheet Silicon Valley Syndicate Syndication 46

Austin Startup

MAY 17, 2017

It’s pretty well known that startups usually undergo a meaningful change in Board composition at their Series A round. At a minimum, the lead investor(s) of the round get Board seats; although they shouldn’t get Board control. Less has been written about what startup boards tend to look like before a Series A round.

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Seed Stage Startup Cap Table Angel Investor 48

Gust

OCTOBER 3, 2011

For a first time entrepreneur trying to figure out the arcane world of startup financing, it can be very confusing to understand the roles that different types of investors play in funding promising companies, as well as the point in a company’s life at which they enter the stage.

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Finance Venture Capital Intellectual Property Early Stage 70

Professor VC

MARCH 12, 2015

The above was the opening salvo of a controversial tweetstorm yesterday by my former student and 500 Startups founding partner, Dave McClure (full venom below). As with all M&A exits, there was a round of congratulatory messages to the founder in the Silicon Valley echo chamber. Syndicates can either be company led or investor led.

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Syndicate Syndication Silicon Valley Common Stock 28