Startup Professionals Musings
JANUARY 27, 2012
It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Anti-dilution protection. But some dilution is almost inevitable. But due diligence and paperwork take time, and can change everything. Right of first refusal.
Startup Professionals Musings
SEPTEMBER 14, 2010
It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Anti-dilution protection. But some dilution is almost inevitable. But due diligence and paperwork take time, and can change everything. Right of first refusal.
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VC Adventure
OCTOBER 8, 2012
When it comes to convertible debt, I’ve had a few instances recently where “out of sight, out of mind” has created some misunderstandings around deal structures. But factor in that convertible debt above and you’re actually taking more like 50% dilution from the ownership reflected on your pre-convert cap table.
Gust
OCTOBER 17, 2011
It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Anti-dilution protection. But some dilution is almost inevitable. Due diligence and paperwork take time, and can change everything. Right of first refusal.
VC Adventure
OCTOBER 8, 2012
When it comes to convertible debt, I’ve had a few instances recently where “out of sight, out of mind” has created some misunderstandings around deal structures. But factor in that convertible debt above and you’re actually taking more like 50% dilution from the ownership reflected on your pre-convert cap table.
David Teten
OCTOBER 1, 2015
I’ve been looking for suggestions for an initial deal structure that is appropriate for the theoretical case of a trusted dev shop putting in $100k in market-value of services over a 6 month period in time. on top of that often results in conversations and incentives that are difficult to overcome, especially early on in a company.
Gust
OCTOBER 21, 2011
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.
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