Both Sides of the Table
APRIL 23, 2017
You have cash in the bank, a monthly burn rate and a “cash out” date that few in the company truly comprehend. Or ask anybody who has had a VC pull a term sheet for whatever reason. When you run a startup you’re always on borrowed time. It’s why so few can really start a business from scratch. That’s fantasy land.
View from Seed
FEBRUARY 12, 2020
If you have a term sheet in hand or know for a fact that you are about to get one, you can be pretty transparent and say that you are late in the process and are looking to make a decision by X date. If you don’t have a term sheet, my general approach is to communicate that you are early in the process.
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abovethecrowd.com
APRIL 20, 2016
The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. The Sharks Arrive With Dirty Term Sheets.
Genuine VC
JANUARY 10, 2012
Prior to the next round, the startup risks being run at a higher burn-rate so that it looks positioned to need the larger financing. As a general rule, deviation from a simple and elegant term sheet (especially in early rounds of financing) can cause strain, and super pro-rata rights is just another (new and emerging) example.
Haystack
SEPTEMBER 1, 2018
Those founders can often choose from a few term sheets. ” Sometimes, we’ll see a company that spends or burns the money too fast. A company is starting to get its sea legs, they’re booking revenues and growing, and they raise a hefty seed round of, say, $3M-ish dollars. ”
Professor VC
APRIL 1, 2010
There has been a lot of discussion and publishing of standard term sheets, including Y Combinator, TechStars and SeriesSeed. A good comparison of the various "standard" term sheets can be found at Start-up Company Lawyer. Marios firm, Wilson, Sonsini, even has a term sheet generator on their site.
Both Sides of the Table
MARCH 30, 2016
Six firms had expressed strong interest, two had strong champions already trying to test price and round size and one had made it clear they were planning to submit a term sheet the following week. We had grown into a more reasonable burn rate so raising capital meant we would have many years of cash on the balance sheet.
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