Both Sides of the Table

MAY 9, 2018

You race back to the office to tell everybody how well it went and you wait for the follow-up call to have a partners’ meeting or talk about term sheets or at least dip into due diligence. I left the meeting and had to attend a 3-hour board meeting where two founders have been fighting and each want the other one fired.

Software Review 381

Software Review Churn Rate Due Diligence New York 381

Startup Professionals Musings

SEPTEMBER 14, 2010

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from an angel, either. Your best strategy is to bring your own term sheet to the negotiation as a starting point. Outline multiple tranches. Marty Zwilling.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Both Sides of the Table

AUGUST 28, 2012

Since the game of competing is always “where the puck is going” you can have a detailed conversation without completely letting on what your future strategy will be. Another VC called the co-founder & tech head – Parker Harris. The only real benefit of their having this information is in preparation for a term sheet.

Technical Review 316

Technical Review Due Diligence Term Sheet Cap Table 316

Gust

OCTOBER 17, 2011

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from either. Your best strategy is to bring your own term sheet to the negotiation as a starting point. Outline multiple tranches. Anti-dilution protection.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

Both Sides of the Table

OCTOBER 19, 2014

I first met Andrew Stalbow , the founder & CEO of Seriously in August of 2013. and Petri was co-founder and head of creative at Remedy Entertainment that launched the hit PC games Max Payne and Alan Wake. and had several phone conversations after that. But I’m guessing the narrative is similar elsewhere.

Technical Review 373

Technical Review North America Los Angeles Cofounder 373

David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

View from Seed

FEBRUARY 12, 2020

During the course of a fundraise, founders are likely to encounter a few questions from VC’s that seem awkward or even a bit unfair. These are questions that usually don’t have anything to do with the business itself, but center around the dynamics of the round or maybe the motivations of the founders.

Term Sheet 364

Term Sheet Burn Rate Founder Partner 364

Both Sides of the Table

MAY 24, 2018

Find one that’s on the earlier-stage size or one that raised a long time ago and never scaled and get to know the founder & CEO. Find a portfolio company or two that they’ve invested in. They can likely give you the entire playbook of the partnership if you build a meaningful relationship with them and they trust you.

Technical Review 314

Technical Review Due Diligence Partner Term Sheet 314

Scott Edward Walker

SEPTEMBER 14, 2011

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. The Investors’ Right to Walk VC Term Sheets Are Non-Binding. VC Term Sheets Are Conditional.

Term Sheet 76

Term Sheet Due Diligence Liquidation Preference Redemption 76

Agile VC

MAY 26, 2011

This also appears as a guest post at Fortune’s Term Sheet. Many assume it was a cakewalk, based on the success LinkedIn has enjoyed over time and the current stature of our founder/CEO Reid Hoffman (now Chairman). Yes… he was a very successful PayPal exec and previously co-founder & VP Product of SocialNet.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

View from Seed

FEBRUARY 23, 2021

The classic scenario is when a VC has a signed term sheet to lead a round, but has left room open for another meaningful investor. Especially in the age of zoom pitching, founders can create a fairly wide top of the funnel, and talk to a large number of investors to find a good match for their round.

Syndicate 207

Syndicate Syndication Term Sheet Cofounder 207

Austin Startup

JULY 22, 2021

Any software, hardware, or CPG startup in Texas with a female founder or co-founder can apply to participate. We’ve helped winners connect with customers, mentors, and secure millions of dollars in capital from partners like Google Black Founders Fund, Revolution’s Rise of the Rest Fund, Backstage Capital, and many other VC investors.

San Antonio 107

San Antonio Dallas Houston Founder 107

Austin Startup

DECEMBER 15, 2020

Any tech or consumer startup with a black founder can apply to pitch at our Black in Tech Summit. Submit your application VIP Accelerator Application Who can apply? Journey Foods - Food Science & Supply Chain Software Could you be next?

Founder 98

Founder Dallas Houston Term Sheet 98

View from Seed

MAY 31, 2023

For example, a 2009 study conducted by Paul Gompers and David Scharfstein, “Performance Persistence in Entrepreneurship”, found that failed founders have the same chances of success¹ as novice founders, but prior success does increase the odds of future success. I reached out to a dozen founders using the criteria of: 1.

Silicon Valley 156

Silicon Valley Cofounder Term Sheet Founder 156

This is going to be BIG.

MAY 26, 2022

“Personal Branding” The term is fingernails on a chalkboard-level cringe for many of the best founders—mostly because it feels most of the people who spend time building their personal brand don’t actually have much there there behind it. Unfortunately, this has real consequences for founders. So how can founders differentiate?

Founder 103

Founder .Net Term Sheet Aggregator 103

View from Seed

MAY 17, 2019

The venture fundraising process for founders has a certain rhythm to it, and so a lot can be read into the timing and pacing of the conversations. After a term sheet is signed, but before closing, I call the “venture limbo” period.

Term Sheet 149

Term Sheet Reputation Security Conversion 149

Version One Ventures

JULY 20, 2017

million seed round, we’re looking back at our journey with founders Mike Murchison and David Hariri. Intrigued, Boris reached out to Mike Murchison and learned that he and his co-founder David Hariri were building a social network to help others solves problems online. .

Artificial Inteligence 151

Artificial Inteligence Silicon Valley Stealth Term Sheet 151

Scott Edward Walker

JULY 7, 2011

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. What Are the Key Issues for Founders? There are several issues founders should focus on in connection with redemption rights.

Term Sheet 49

Term Sheet Redemption Venture Capital Preferred Stock 49

Both Sides of the Table

MAY 13, 2018

This is part of a series of advice for founders who need to raise money from venture capitalists. Somehow many first-time founders equate “sales” with something that is beneath them. I always tell founders … “An investors job is to deploy capital and make a return. This is where most founders err.

Term Sheet 332

Term Sheet Due Diligence Campaign Sales 332

Both Sides of the Table

MARCH 8, 2018

In 2017 we began inserting an “Inclusion Clause” into our term sheets because we believe that the culture one establishes at the earliest stages of one’s business will set out the course of how it will grow and develop. We believe that diverse teams produce diversity of thought and that this leads to better decisions and outcomes.

Term Sheet 284

Term Sheet Los Angeles Open Source Portfolio 284

This is going to be BIG.

OCTOBER 12, 2020

One of my founders texted me, “What are you telling people to do about the Coronavirus?” One just got a seed term sheet for twice the valuation I put in at in the pre-seed and the other is doing $200k/month in revenue. It’s not the telling my story or that of the founders I’ve backed. He seemed paranoid.

LP 136

LP Technical Review Software Review Valuation 136

YoungUpstarts

OCTOBER 28, 2015

Investors typically negotiate from a term sheet, which if not handled properly can create problems that can hurt or kill the startup’s chances when they do their Series A round of funding. a SAFE or KISS) provide a much simpler transaction with less terms to negotiate. Debt or convertible securities (e.g.,

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

Austin Startup

JULY 22, 2017

The Walker Rule calls for diversity and inclusion in interviewing and hiring of startup co-founders, CEO, senior team, management, staff, board of directors and advisors. This is similar to something we did at Austin Ventures to encourage startups to make a donation to the Entrepreneurs Foundation of Central Texas.

Austin 54

Austin Angel Investor Startup Term Sheet 54

Austin Startup

NOVEMBER 12, 2017

A frequent metaphor I use in customer acquisition, fundraising, or any kind of deal making is that you as the founder and promoter should present the finished meal on the dining table and not drag your counterparts into the kitchen. In that case, you are not making a specific offer; you are soliciting a terms sheet.

Term Sheet 48

Term Sheet Technical Review Due Diligence Merger 48

Hunter Walker

JANUARY 5, 2014

Managing short-term tactical outcomes with longer term relationship cultivation. Meeting new founders while collaborating, recruiting, analyzing, doing whatever it takes, to help our current founders build strong companies. Doing what excites me and gives energy. 1) Evaluate New Opportunities. .”

Software Review 103

Software Review Balance Sheet Cofounder Technical Review 103

Both Sides of the Table

MAY 21, 2018

I told him, “I know we don’t yet have a term sheet so you feel you need to listen to everybody’s request. But imagine you were expecting two term sheets imminently. I recommended that the founder politely cancel the call because we had other great firms actually taking meetings. “If How would you act then?

Term Sheet 217

Term Sheet Later Stage Demand Email 217

K9 Ventures

OCTOBER 27, 2016

One of these norms is how founder vesting and employee vesting works. Here is a good summary post from Cooley GO on Founder Vesting. There are two main reasons for founder vesting: To ensure founders stick around and build the company. The first is fairly obvious. Founding teams can fall apart for many reasons.

Founder Vesting 48

Founder Vesting Vesting Founder Term Sheet 48

Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … 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.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Austin Startup

FEBRUARY 11, 2020

One founder/startup will walk away with a $100,000 investment that day! Any tech or consumer startup with a Black founder can apply to pitch at our Black in Tech Summit. Submit your application Who can apply?

Houston 84

Houston Dallas Term Sheet Texas 84

Austin Startup

FEBRUARY 11, 2020

One founder/startup will walk away with a $100,000 investment that day! Any tech or consumer startup with a Black founder can apply to pitch at our Black in Tech Summit. Submit your application Who can apply?

Houston 84

Houston Dallas Term Sheet Texas 84

View from Seed

DECEMBER 6, 2018

Most often, VCs ask founders to pitch another member of partnership. Other methods of outsourcing work include assigning founder “homework” or having junior staff run some analysis, make phone calls, or write up a report. The challenge for some VCs is that real, deliberate diligence like that, takes actual work.

Due Diligence 120

Due Diligence Term Sheet Seed Stage Partner 120

Reid Hoffman

DECEMBER 10, 2020

These are really good founders and I think this is an interesting space.” Further, when additional people kept mentioning Airbnb to me and praising the founders, I should have asked myself how a smart, capable person would refine the idea.). Those two minutes showed me that Airbnb’s founders wanted to play in the big leagues.

Hosting 69

Hosting Hockey Stick IPO Silicon Valley 69

Both Sides of the Table

JUNE 5, 2015

I am reminded of this problem every time my firm does a financing where a note went before us but more specifically I was reminded by this great post by Brad Feld to talk about the pre-money vs. post-money conversion issue. If you’re a solo founder and haven’t built out your team or engineers I’m likely to want 15+%.

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

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. Accordingly, I thought it would be helpful for founders to discuss these rights and to point out the problems they create for startups. Introduction. Pro Rata Rights.

Preferred Stock 56

Preferred Stock Term Sheet Dilution Stock 56

View from Seed

JANUARY 30, 2020

But assuming success, a moment will come when a founder will have multiple funding options. Partnering with an investor and/or board member is very long term commitment, and I’m always surprised by how little diligence founders do prior to signing up for what could be a 10+ year collaboration. Raising money is super hard.

Due Diligence 195

Due Diligence Partner Term Sheet Finance 195

www.seriesseed.com

DECEMBER 9, 2012

Series Seed Term Sheet (v 2.0). Series Seed Term Sheet. You can follow this conversation by subscribing to the comment feed for this post. In reviewing these documents on the term sheet, last item, how is the term "double trigger" defined.   Series Seed COI.

Finance 40

Finance Term Sheet Vesting LLC 40

Feld Thoughts

OCTOBER 15, 2013

Provide some sort of seed capital to their founders. Take a small amount of equity (usually ~6%) and overall have terms that are favorable to entrepreneurs. Not every accelerator is/could be/would be a member in GAN, nor is it designed that way. Take no less than 5 and no more than 12 companies at a time.

Global 179

Global Networking United States Seed Money 179