Both Sides of the Table

SEPTEMBER 25, 2010

Having re-read it, I believe his real premise instead is, “Fixed-size, multi-investor angel rounds are such a bad idea for startups that one wonders why things were ever done that way.&#. Investors who commit early deserve to have a lower price. Investors who commit early deserve to have a lower price.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Startup Professionals Musings

SEPTEMBER 14, 2010

Remember a term sheet agreement is not a deal until the check clears. Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. However, there is no set pattern of terms an entrepreneur might be able to anticipate from an angel, either.

Term Sheet 227

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

Startup Professionals Musings

JULY 16, 2023

None normally work for or provide funds for early-stage startups. For these fees, they will develop a business plan, solicit investors, and negotiate term sheets to a closing. Many investment banks even call themselves “boutiques.” Commercial banking is also known as business banking.

Early Stage 182

Early Stage Silicon Valley Private Equity Initial Public Offering 182

Startup Professionals Musings

JUNE 29, 2012

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process.

Technical Review 245

Technical Review Due Diligence Term Sheet Startup 245

Startup Professionals Musings

APRIL 22, 2012

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. If the term sheet process turns to pure torture, it may be time to respectfully bow out. Litigious angels.

Angel Investor 281

Angel Investor Term Sheet Entrepreneur Due Diligence 281

Austin Startup

JULY 22, 2017

Back in December 2016 I had the idea to develop a startup pledge for diversity and inclusion here in Austin and since have informally been working with some folks to develop the idea. This is similar to something we did at Austin Ventures to encourage startups to make a donation to the Entrepreneurs Foundation of Central Texas.

Austin 54

Austin Angel Investor Startup Term Sheet 54

Hunter Walker

OCTOBER 31, 2020

So I’ve found that when you’re not already ‘in the door’ at a firm (ie went to school with the senior GP’s kids, worked at a startup they backed) that there are four different types of “qualifications” they are seeking. Qualification #4: You have an emerging track record as a good angel investor. Notes and More.

North Carolina 90

North Carolina Hiring Angel Investor Technical Review 90

Startup Professionals Musings

MAY 26, 2013

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. If the term sheet process turns to pure torture, it may be time to respectfully bow out. Litigious angels. Marty Zwilling.

Angel Investor 263

Angel Investor Term Sheet Due Diligence Early Stage 263

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. Q: “If you have a term sheet on the table how should you leverage with other VCs?&#

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Startup Professionals Musings

OCTOBER 26, 2020

None normally work for or provide funds for early-stage startups. For these fees, they will develop a business plan, solicit investors, and negotiate term sheets to a closing. Many investment banks even call themselves “boutiques.” Commercial banking is also known as business banking.

Silicon Valley 362

Silicon Valley Private Equity Initial Public Offering Term Sheet 362

Up and Running

MAY 11, 2016

On April 25, 2016, Wiley published “The Startup Checklist: 25 Steps to a Scalable, High-Growth Business” by David S. 500 CEO, an angel investor, and a serial entrepreneur. Who should read “The Startup Checklist”? What’s in “The Startup Checklist”?

Technical Review 60

Technical Review Term Sheet Startup Due Diligence 60

Both Sides of the Table

APRIL 13, 2011

“My startup business was acquired and I worked for the company that bought us; which was a public company called Ameridata that bought about 40 companies in about three years. So I was an Angel investor from 1994 to 1996. And it’s that combination with a long-term view. Is that when it became big?

Technical Review 288

Technical Review Venture Capital Silicon Valley Software Review 288

Startup Professionals Musings

DECEMBER 3, 2010

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. If the term sheet process turns to pure torture, it may be time to respectfully bow out. Litigious angels.

Angel Investor 244

Angel Investor Term Sheet Due Diligence Early Stage 244

Gust

NOVEMBER 11, 2011

Startups and investors discover each other, and the community wins because the event becomes visible evidence of new business and new jobs locally. And new angel investors are trained and oriented. Or the in-kind winning includes legal work or management consulting, but the startup that wins has its own providers.

Software Review 79

Software Review Term Sheet Due Diligence Angel Investor 79

Startup Professionals Musings

DECEMBER 28, 2010

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process.

Technical Review 229

Technical Review Due Diligence Term Sheet Angel Investor 229

Up and Running

MAY 18, 2016

Reading lists are dime a dozen, but reading lists that focus on rapid-growth startup businesses? It’s the ultimate startup guide if you’re looking for systematic business growth and guidance on what not to do. The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses.

Startup 80

Startup Venture Capital Angel Investor Lean 80

Both Sides of the Table

JANUARY 21, 2010

If you’re a startup and you don’t have a close relationship with a few law firms you’re really missing one of the most important relationships that any entrepreneur can have. I write about some of the lessons in my post on Startup Mistakes. Every town has firms that focus on startups – find them.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

The Startup Lawyer

JANUARY 10, 2011

There’s a lot of advice about (1) how to attract VCs, and (2) how to negotiate a venture capital term sheet. Both sets of advice tend to ignore the gap between an investor’s expression of investment interest and your startup’s receipt of the term sheet.

Term Sheet 64

Term Sheet Pre-Money Valuation Liquidation Preference Option Pool 64

Startup Professionals Musings

JULY 3, 2014

As an Angel investor to startups, I’m still surprised to find entrepreneurs who expect investors to give them money, and then disappear into the sunset. Angel and venture capital money always comes with strings attached, starting with the obvious ones outlined in the term sheet for the deal.

Term Sheet 237

Term Sheet Advisory Board Liquidation Preference Startup 237

Tim Keane

MAY 16, 2010

Startups and angels: Along the way to success. By Tim Keane, Angel Investor, Golden Angels Investors, LLC. A philosophy of valuations and term-sheets. Several months ago, I'd posted an article about term-sheets.  Posted at 05:03 PM in Funding startups | Permalink.

Term Sheet 60

Term Sheet Valuation Wisconsin Angel Investor 60

Both Sides of the Table

AUGUST 8, 2009

Traction can simply mean showing that you’re making progress with customers, product development, channel partners, initial revenue as a proof point, attracting well-known angel investors, winning industry awards / recognition. And I know many stories of Benchmark or similar investors writing term sheets after the first meeting.

Technical Review 309

Technical Review Term Sheet Venture Capital Revenue 309

Gust

DECEMBER 21, 2011

The Valley produces world-class entrepreneurs, angel investors, venture capitalists and successful high-tech companies – all growing and creating jobs on one relatively small peninsula. In fact, we can find very successful startup companies in every state and region in the country.

Silicon Valley 107

Silicon Valley Southern California Tucson Seattle 107

Startup Professionals Musings

SEPTEMBER 10, 2013

None normally work for or provide funds for early-stage startups. For these fees, they will develop a business plan, solicit investors, and negotiate term sheets to a closing. investment bank entrepreneur startup funding IPO' Many investment banks even call themselves “boutiques.” Marty Zwilling.

IPO 205

IPO Silicon Valley Private Equity Initial Public Offering 205

Gust

MAY 21, 2014

From the question it sounds to me as though this is a case of both a novice investor and a novice entrepreneur, with neither one having much experience with or as an angel. I would therefore *strongly* advise you to get an experienced startup attorney to advise you during the negotiation/term sheet discussions.

Limited Liability Company 150

Limited Liability Company Term Sheet NDA Due Diligence 150

Startup Professionals Musings

FEBRUARY 3, 2018

As an angel investor to startups, I’m still surprised to find entrepreneurs who expect investors to give them money, and assume no strings attached. Angel and venture capital money always comes with ownership and management implications, starting with the obvious ones outlined in the term sheet for the deal.

Term Sheet 140

Term Sheet Advisory Board Liquidation Preference Portfolio 140

Startup Professionals Musings

APRIL 3, 2012

If your startup desperately needs an investor, you may not care if the investor is a so-called “angel” investor, or a venture capitalist (VC). But I have found that making the right choice at the right time can have a major impact on your long-term valuation, and the decision process is complex.

IRR 248

IRR Term Sheet Startup Valuation 248

View from Seed

AUGUST 12, 2015

I remember talking to one of their angel investors (and also one of my old mentors) about what the company could become and what it would look like if it ever became a really big business. His answer was so simple, and at the time, I kind of dismissed it as the view of an angel investor who didn’t really “think like a VC.”

Seed Stage 120

Seed Stage Marketing Angel Investor Term Sheet 120

View from Seed

AUGUST 12, 2015

I remember talking to one of their angel investors (and also one of my old mentors) about what the company could become and what it would look like if it ever became a really big business. His answer was so simple, and at the time, I kind of dismissed it as the view of an angel investor who didn’t really “think like a VC.”

Seed Stage 120

Seed Stage Marketing Angel Investor Term Sheet 120

A Crowded Space

SEPTEMBER 18, 2015

Any time you have Techcrunch publishing articles like, “ Our 9 Favorite Startups From Y Combinator Summer 2015 Demo Day 2” , you’re going to get some hyped companies. Any time you have a “ Mindshare Score ” that ranks all startups you’re going to end up with some hype. Many investors pride themselves on that ability.

San Diego 60

San Diego Software Review San Francisco Silicon Valley 60

Startup Professionals Musings

AUGUST 16, 2015

As an angel investor to startups, I’m still surprised to find entrepreneurs who expect investors to give them money, and assume no strings attached. Angel and venture capital money always comes with ownership and management implications, starting with the obvious ones outlined in the term sheet for the deal.

Term Sheet 120

Term Sheet Advisory Board Liquidation Preference Angel Investor 120

Startup Professionals Musings

JANUARY 22, 2011

None normally work for or provide funds for early-stage startups. None of these investment banks offer traditional banking services, as you would expect from one of the following: Retail banks Commercial banks Credit unions Savings and loans As startup founders, you first need to deal with one of these banks, probably a commercial bank.

Silicon Valley 211

Silicon Valley Private Equity Initial Public Offering Startup 211

Startup Professionals Musings

NOVEMBER 11, 2010

If your startup desperately needs an investor, you may not care if the investor is a so-called “angel” investor, or a venture capitalist (VC). But I have found that making the right choice at the right time can have a major impact on your long-term success, and the decision process is complex.

IRR 225

IRR Startup Term Sheet Angel Investor 225

ReadWriteStart

NOVEMBER 1, 2010

What is the best way to evaluate a potential startup to work at (full-time)? Are there examples of good start up term sheets? What are the top 5-7 questions a start-up CEO should ask of an angel investor early on, to determine if they and you (& your project) are a potential fit? How did Startup X get traction?

Angel Investor 145

Angel Investor Term Sheet Startup Curation 145

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.’ Various terms such as price cap, discount, conversion to equity, etc.,

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

Feld Thoughts

MARCH 2, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR). I wrote about this in my post The Challenge of The Ideal First Round Term Sheet. Then we’ll open source these and evangelize them across the startup world, at least in the US. Tags: financing seed documents Term Sheet.

Finance 133

Finance Term Sheet Angel Investor Early Stage 133

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. However, most typical convertible debt issued by startups have a maturity date of typically one year or later from the time of issuance.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Gust

SEPTEMBER 29, 2011

The most successful serial entrepreneurs in the world may found three or four, perhaps even eight or ten venture-backed startups over the course of their careers. By contrast, venture capitalists and angel investors typically make scores or even hundreds of investments over the course of their careers. Knowledge is power.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178