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When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

And as my partner Rob Go likes to say, “Time kills all deals.”). Lower-Than-Market Value. This approach is almost never a good idea.

Keep Term Sheets Simple for Quicker Cash to Spend

Gust

Remember a term sheet agreement is not a deal until the check clears. Due diligence and paperwork take time, and can change everything.

Keep Term Sheets Simple for Quicker Cash to Spend

Startup Professionals Musings

Remember a term sheet agreement is not a deal until the check clears. But due diligence and paperwork take time, and can change everything.

Later-stage rounds and “setting the bar too high”

Chris Dixon

I recently had a number of conversations with CEOs of later-stage startups (generating significant revenue) that went something like this.

Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups.  In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal.  This paragraph is the heart of the whole deal.  Amount of Financing :  Up to $600,000 may be issued.

Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

Sharing these expectations early in potential lead investor discussions fundamentally qualifies the conversations, but it also runs the risk of prematurely losing a potential financing partner or reducing options to maximize a financing process outcome. But, also by definition, that just can’t be the case. 

SeedRuption

charliecrystle.com

can't stop commenting about it, which makes me a very poor participant in the conversation (or a great one). If I'm a hot deal in NY or SOMA, maybe I can raise and close an angel round in a few weeks. So, context matters to deal structure. I hate that title, but it's Saturday night and I'm feeling saucy. Fred followed up.

'Show Me the Money' Tips for Business Sellers

Fresh Inc.: The Staff Blog

This saves a significant amount of time, given that a buyer can immediately start working with a lender who is already familiar with your deal.

NDA 7

A Primer on Angel Investment ‘Simple Term Sheets’

Startup Professionals Musings

Remember a term sheet agreement is not a deal until the check clears. But due diligence and paperwork take time, and can change everything.

Knowledge Is Power: Convertible Note Financing Terms, Part IV

Gust

In Parts II and III, we looked at commonly used mandatory and voluntary conversion language in convertible notes.  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. 

Knowledge Is Power: Convertible Note Financing Terms, Part V

Gust

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. It’s common to skip the questionnaire when dealing with “known quantity” institutional investors provided they are willing to make the representations in the purchase agreement.

Angel Investing is Where VC was 25 Years Ago

Angel Blog

As I attended sessions, and had conversations, on everything from deal structures to term sheets and deal flow to exits, it occurred to me that I had been in similar conferences about 25 years ago. Last week, I was at the Angel Capital Association annual conference in Atlanta. The ratio seems to be similar worldwide.

Include Deal Terms or Not?

Mark Birch

I had a discussion the other night with an entrepreneur about whether to include specific deal terms in the pitch deck or investor meetings. 

Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

on top of that often results in conversations and incentives that are difficult to overcome, especially early on in a company. The discounts?

Goldman Sachs / SEC: political witch-hunting is no way to change a market

Fred Destin

We were subject to losses and we did not structure a portfolio that was designed to lose money. Pro-life / pro-choice type debates lead nowhere.