article thumbnail

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

As the seed-stage startup fundraise process has received more transparency in recent years, ranging from published advice on how to raise seed capital to increased availability through AngelList, Funders Club, and various accelerator programs, I’ve noticed another trend emerging. Lower-Than-Market Value.

Valuation 336
article thumbnail

July 4th Linkblog: Don’t Fake FOMO When Fundraising, 50 Cent on Success, Miss Texas on Reproductive Rights,

Hunter Walker

A few reads for an American holiday Uncle Sam reading a magazine while an eagle sits on his shoulder, digital art In Conversation with 50 Cent (Carvell Wallace/Vulture) – 20 years later and reading his name still triggers memories of In Da Club’s opening beats. And it changed the way artists look at deal structures.

Texas 67
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

A Primer on Angel Investment ‘Simple Term Sheets’

Startup Professionals Musings

It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Tags: entrepreneur startup angel investment term sheet business. But due diligence and paperwork take time, and can change everything. Anti-dilution protection.

article thumbnail

Keep Term Sheets Simple for Quicker Cash to Spend

Startup Professionals Musings

It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Entrepreneurs sometimes assume an initial agreement with an Angel is a commitment, so they start spending before any money is received. Anti-dilution protection.

article thumbnail

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.

Valuation 136
article thumbnail

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. These deal terms are simple but significant. This paragraph is the heart of the whole deal.

Finance 79
article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part IV

Gust

For convertible notes, the only liquidity event we need be concerned with is an acquisition of the startup in the near future, before the maturity date; otherwise, the notes will convert to equity of one kind or another, and the eventual sale of that equity (in a public offering, acquisition, or private sale) is a different subject for another day.

Finance 79