Both Sides of the Table

SEPTEMBER 18, 2014

On the phone … Me: So, you raised venture capital? Him: But it’s much cheaper to just use the Series Seed term sheets that every law firm has put out so convertible notes make more sense because they’re cheaper and easier. These are all real conversations. We raised a seed round. About $1 million.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

David Teten

JANUARY 19, 2021

Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY. Yes, non-voting common shares (if converted).

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Company Lawyer

AUGUST 31, 2012

” The theory is that the number of seed stage Series A deals led by venture capital firms is decreasing, meaning that it will be difficult for startups to raise a new round of financing. Form of Convertible Security Term Sheet. Form of Convertible Securities Purchase Agreement. Form of Convertible Security.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Scott Edward Walker

JUNE 9, 2019

Over the past few weeks, two of my clients have received financing term sheets in which the investors requested super pro rata rights. Introduction. Accordingly, I thought it would be helpful for founders to discuss these rights and to point out the problems they create for startups. Pro Rata Rights.

Preferred Stock 56

Preferred Stock Term Sheet Dilution Stock 56

Gust

OCTOBER 12, 2011

Last week , we took the plunge and began dissecting an example term sheet for a convertible debt financing round piece by piece. I’ll continue with more specific terms and wrap up next week with some thoughts about recent changes and trends for the future. First, a word about the maturity date.

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

Gust

SEPTEMBER 17, 2014

Me: So, you raised venture capital? Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153