Remember a term sheet agreement is not a deal until the check clears. It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. But due diligence and paperwork take time, and can change everything. Seat on the board. MORE >>

I recently had a number of conversations with CEOs of later-stage startups (generating significant revenue) that went something like this. Note that I have no connection to Dropbox so am just assuming standard deal structure and basing numbers on public reports. These CEOs are worrying too much. startups MORE >>

I had a discussion the other night with an entrepreneur about whether to include specific deal terms in the pitch deck or investor meetings.  There are seven main points to consider when talking about the structure of the deal: Raise – The amount of capital you are raising.  Terms – Specific contractual elements governing deal.  MORE >>

In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal.  This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing.  These deal terms are simple but significant.  This paragraph is the heart of the whole deal.  MORE >>

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.  Not too shabby.  MORE >>