View from Seed

OCTOBER 21, 2014

As the seed-stage startup fundraise process has received more transparency in recent years, ranging from published advice on how to raise seed capital to increased availability through AngelList, Funders Club, and various accelerator programs, I’ve noticed another trend emerging. Lower-Than-Market Value.

Valuation 336

Valuation Founder Seed Stage Angel Investor 336

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.

Term Sheet 223

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

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. Marty Zwilling.

Term Sheet 227

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

VC Cafe

SEPTEMBER 6, 2011

This summer, I had the pleasure to be a mentor at the Entrepreneurship Summer School , an elective at London Business School (my alma mater) where students are tasked with testing whether their startup ideas can turn into a fundable business over the course of three months. 10 tips for raising money from business angels.

Startup 133

Startup Cofounder Warrant Stock Options 133

Genuine VC

JULY 30, 2012

In theory, there are three levels of pricing for an entrepreneur to potentially signal to a prospective investor: Lower than “market.” This approach is almost never a good idea. Probably the most price-sensitive seed investors I know are sophisticated individual angel investors.

Valuation 136

Valuation Pre-Money Valuation Angel Investor Syndicate 136

Gust

OCTOBER 5, 2011

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal. These deal terms are simple but significant. This paragraph is the heart of the whole deal.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Tim Keane

AUGUST 20, 2009

Startups and angels: Along the way to success. By Tim Keane, Angel Investor, Golden Angels Investors, LLC. Or a paradise for investors? Are Investors Being Unreasonable? the business, it will always be worth more to the entrepreneur as well as future investors, if any.  March 2011.

Milwaukee 60

Milwaukee Bootstrapping Cram Down Deal Structure 60