Up and Running

SEPTEMBER 11, 2014

Rob Biederman, co-founder of HourlyNerd, has a funding story that wouldn’t be out of place in a movie. They emailed billionaire investor Mark Cuban, asking him for financing. It just feels right,” says Mike Whitehead, FINEX founder. How a now-famous web company got funded by Mark Cuban. Look to the government.

Cofounder 137

Cofounder Green Small Business Administration Business Plan 137

Rob Go

NOVEMBER 12, 2014

Even though we are a seed-focused VC fund, we were very excited to help organize this event because of our belief that increased angel activity is critical to keep propelling the Boston startup ecosystem (and the local economy) further. Focus on founders that just won’t give up. Here they were below: 1.

Angel Investor 71

Angel Investor Silicon Valley Cofounder Finance 71

Startup Company Lawyer

AUGUST 31, 2012

Over the past few years, convertible debt has emerged as a quick and inexpensive method for startup companies to raise money from angel investors and early stage venture funds. ” As a result, Ted introduced the Series Seed preferred stock documents as an alternative to convertible debt for early stage investments.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Gust

JUNE 19, 2012

Tim Berry , Founder, Palo Alto Software. Martin Zwilling , Founder and CEO, Startup Professionals. Tim Berry , Founder, Palo Alto Software. Martin Zwilling , Founder and CEO, Startup Professionals. Tim Berry , Founder, Palo Alto Software. Martin Zwilling , Founder and CEO, Startup Professionals. I like that.

Startup 180

Startup Forecast Angel Investor Software 180

Up and Running

SEPTEMBER 19, 2017

Seeking that funding prior to launching a viable product, however, would have virtually ensured that Klemm would largely cede control of the company to PE investors. Under that scenario, the same $500,000 is only worth a 10-ish percent stake in the business, and the founder can retain far more control in the entity.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

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.’ Convertible Debt Financing. Pros and Cons of Convertible Debt.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

Gust

SEPTEMBER 27, 2014

To begin with, it is important to understand some basic facts about the world of entrepreneurial finance: There are many more entrepreneurs than there are investors, with the result that only one company out of every 400 that seeks venture funding actually receives it.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Board Effect

JUNE 9, 2021

Thousands of great ideas never come to fruition because business owners and founders of nonprofit organizations aren’t familiar with the startup business grant process. Other Ways to Finance Your Business or Organization. Attract an angel investor. Credit card. Crowdfunding. Pledge some of future earnings.

Government 78

Government Technical Review SBA Angel Investor 78

Gust

SEPTEMBER 29, 2011

By contrast, venture capitalists and angel investors typically make scores or even hundreds of investments over the course of their careers. It should therefore come as no surprise that an asymmetry of information exists, mostly gleaned from experience, between founders and investors in a venture financing deal.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

mashable.com

OCTOBER 16, 2010

Not only that, but the growing battle between venture capital firms and “super angels&# presents an amazing opportunity for entrepreneurs trying to build the next big thing. All of this is according to Paul Graham, co-founder of the early-stage investment fund Ycombinator. Angel rounds also tend to close quicker.

Angel Investor 84

Angel Investor Venture Capital Social Media Technical Review 84

mashable.com

OCTOBER 16, 2010

Not only that, but the growing battle between venture capital firms and “super angels&# presents an amazing opportunity for entrepreneurs trying to build the next big thing. All of this is according to Paul Graham, co-founder of the early-stage investment fund Ycombinator. Angel rounds also tend to close quicker.

Angel Investor 83

Angel Investor Venture Capital Social Media Technical Review 83

Up and Running

MAY 18, 2016

In this book, you’ll get step-by-step advice on how to align strategy, tactics, milestones, and assumptions, without having to worry about creating a business plan document. It’s packed full of interviews from successful founders and ultimately, will give you that platform from which you can grow.

Startup 80

Startup Venture Capital Angel Investor Lean 80

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” For a good summary with links to the documents, see Leena Rao’s post at TechCrunch. Convertible debt? Convertible equity?

Finance 134

Finance Convertible Security Equity Seed Stage 134

Startup Professionals Musings

JULY 28, 2017

Starting a new business is a long, hard process, and I can’t blame any founder for looking for shortcuts. As a new business advisor and angel investor, I have assembled my own favorite list of shortcuts to avoid, in the hope of saving you from learning these lessons the hard way: Be satisfied with verbal or handshake partner agreements.

Cost 180

Cost Advisory Board Entrepreneur Angel Investor 180

Gust

OCTOBER 5, 2011

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. As with so many subjects in law and finance, mastering the jargon is half the battle. This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Berkonomics

JUNE 15, 2017

There is no such thing as a lifestyle business with outside investors. Many companies find themselves at the five-year point completely unprepared for a sale and without the cash resources to carry out such a repurchase of investor stock, making the clause moot.

Liquidity Event 97

Liquidity Event Initial Public Offering Dividend Valuation 97

www.quora.com

JANUARY 16, 2011

looking for good samples with founder friendly terms 11 Answers Mark Suster , Venture Capitalist, Angel investor & 72 votes by Ty Danco , Brandon Wu , Jen Cheng , (more) Ty Danco , Brandon Wu , Jen Cheng , Anon User, Chris Stewart , Tristan Louis , Ravi Kannan , Vin Turk , Shane Lennon , Nicholas Swanson , Sachin Agarwal , Mircea Pa?

Term Sheet 41

Term Sheet Startup Angel Investor Wiki 41

Gust

OCTOBER 21, 2011

To account for scenarios in which the startup is acquired before it has a chance to complete a priced equity financing round, most term sheets and deal documents contain a “ change in control ” provision. In descending order of preference from the founders’ point of view: 1.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Version One Ventures

APRIL 6, 2021

We announced our investment in Arweave , a decentralized platform that enables anyone to store documents and applications forever. contribution was made by various VCs and prominent angel investors to the Nexus Mutual foundation. contribution was made by various VCs and prominent angel investors to the Nexus Mutual foundation.

Portfolio 60

Portfolio SEC Common Stock Angel Investor 60

Steve Blank

JUNE 1, 2011

A veteran board can bring 50-100x more experience into a board meeting than a first time founder. From a founder’s point of view there are three reasons for board meetings. 2) Founders who have a great board do recognize the uncanny pattern recognition skills that good VC’s bring. Wastes Founders Time. The Wrong Metrics.

Silicon Valley 290

Silicon Valley Business Model Venture Capital Balance Sheet 290

Steve Blank

JUNE 1, 2011

A veteran board can bring 50-100x more experience into a board meeting than a first time founder. From a founder’s point of view there are three reasons for board meetings. 2) Founders who have a great board do recognize the uncanny pattern recognition skills that good VC’s bring. Wastes Founders Time. The Wrong Metrics.

Silicon Valley 258

Silicon Valley Business Model Venture Capital Balance Sheet 258

Up and Running

MAY 28, 2015

We recently had Tim Berry, Palo Alto Software founder and business planning expert, present our Bplans audience with his latest advice on lean business planning. It is not a document. What’s the concept of all of this that you’re talking about and then in financing? Tell your angel investors a story about need.

Lean 60

Lean Business Plan Video Software Review 60

Up and Running

JULY 26, 2013

A: This depends on the type of investment and the type of investor. Most sophisticated investors will already have terms they typically prefer in a deal, but they should be open to discussion. I recommend speaking with the founders of other companies the investors have invested in to see what kinds of perks they provided.

Elevator Pitch 79

Elevator Pitch Angel Investor Term Sheet Business Model 79

Feld Thoughts

JUNE 2, 2015

As an angel investor, I have never asked for a liquidation preference on conversion that is greater than the dollars I’ve invested. But, I’ve seen some angels ask for it (or even demand it), especially when there is ambiguity around this and the round happens much higher than the cap. But I didn’t specify it.

Liquidation Preference 70

Liquidation Preference Cap Table Angel Investor Post-Money Valuation 70

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. Purely from the perspective of founders, it is a fantastic deal. See “ Angel Investors v.

Silicon Valley 48

Silicon Valley Los Angeles Angel Investor Common Stock 48

Business Plan Blog

NOVEMBER 12, 2013

Unfortunately, angel investors and venture capitalists are rarely interested in funding a company at this stage. This leaves startups with two options, obtain a loan or get funding from friends, family, and/or founders. Starting any business will require some initial capital, even if only to register the business.

Startup 59

Startup Cofounder Angel Investor Equity 59

Both Sides of the Table

SEPTEMBER 5, 2012

Was Paul Graham right in his “high resolution” financing post? Some thoughts on raising angel money. If I could persuade you that they’re already in these documents would you consider abandoning this structure? Investors call Bull Cap. Convertible debt with no cap is stupid for investors.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

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.   First , dividends.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

www.drowningamerican.com

JUNE 22, 2012

We’re FINALLY putting together the required legal documentation as we incorporate. He’s taking care of all our documentation, etc. I don’t have a technical co-founder on my team but am apt in graphics design and have a lot of ideas bursting out of my head. on deferred basis.

Sweat Equity 40

Sweat Equity Equity Hiring Technical Review 40

Hippoland

JANUARY 4, 2017

Lawyers can charge as much as $10k-$30k (in the US) to draft and execute the legal docs for an equity round, and traditionally, founders are responsible for paying for this as well as investors’ legal costs! And he/she may help you find other investors who will make up the remaining $500k.

Convertible Security 48

Convertible Security Equity Security Silicon Valley 48

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. This is how the game is played. the pricing) until the Series A round.

Preferred Stock 45

Preferred Stock Angel Investor Entrepreneur Common Stock 45

Both Sides of the Table

APRIL 21, 2010

In addition to the P2P deals covered below, on the show we also talked about some of my favorite financing startups ( Wonga in the UK run by Errol Damelin , who is a superstar) and Affordit.com run by serial (and I mean serial!) entrepreneur Wil Schroter (I am an angel investor in Affordit). Enter Xobni. 5.0mm in Series B.

Venture Capital 265

Venture Capital Social Network Angel Investor Chad 265

thestartuplawyer.com

FEBRUARY 24, 2010

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. He obviously never launched a startup and got shafted by a co-founder. You can start by examining every aspect of the co-founder relationship.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

Berkonomics

JANUARY 27, 2010

There is no such thing as a lifestyle business with outside investors. Many companies find themselves at the five year point completely unprepared for a sale and without the cash resources to carry out such a repurchase of investor stock, making the clause moot.

Liquidity Event 67

Liquidity Event Initial Public Offering Dividend Valuation 67

The Startup Lawyer

MARCH 11, 2010

A variety of model startup seed funding docs have been released in the past year or so: TechStars Series AA Preferred , YCombinator Series AA Preferred , and TheFunded Founder Institute’s Plain Preferred. And as I mentioned last week , Fenwick & West and Andreessen Horowitz released the Series Seed model documents.

Delaware 49

Delaware Hockey Stick Preferred Stock Open Source 49

ReadWriteStart

JUNE 13, 2011

A veteran board can bring 50-100 times more experience into a board meeting than a first-time founder. Check back tomorrow for part two: Reinventing the Startup Board Meeting From a founder's point of view there are three reasons for board meetings. As there's no formal board, most of these angel/investors meetings are over coffees.

Silicon Valley 117

Silicon Valley Balance Sheet Metrics Early Stage 117

The Startup Lawyer

MARCH 11, 2010

A variety of model startup seed funding docs have been released in the past year or so: TechStars Series AA Preferred , YCombinator Series AA Preferred , and TheFunded Founder Institute’s Plain Preferred. And as I mentioned last week , Fenwick & West and Andreessen Horowitz released the Series Seed model documents.

Delaware 45

Delaware Hockey Stick Preferred Stock Open Source 45