Scott Edward Walker

SEPTEMBER 14, 2011

It is important for founders to understand that VC term sheets are usually deemed to be “non-binding” (other than perhaps a few provisions, such as the “no-shop” provision and legal fees and expenses). What Are the Key Issues for Founders? Fourth, founders should button-down all of the key issues in the term sheet.

Term Sheet 76

Term Sheet Due Diligence Liquidation Preference Redemption 76

Feld Thoughts

JULY 14, 2015

The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company. So the new investment gets 60%, the founders get 39.9%, and the $1m of seed money gets 0.1%. and the investors, who put up $1m in a convertible note, get 0.1%. Sure – it happens.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Both Sides of the Table

FEBRUARY 14, 2016

Many founders don’t understand why inside rounds are so difficult. So inside rounds get delayed and when there are non-participants you often find “recaps” or “structure” or “pay-to-play” provisions. Because we know in tough times we have to count on our co-investors to be good actors.

Valuation 150

Valuation Down Round Startup Later Stage 150