Startup Professionals Musings

JANUARY 17, 2015

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. Make sure everyone accurately posts their role with your startup on social media profiles, resumes, and references.

Technical Review 120

Technical Review Due Diligence Startup Term Sheet 120

View from Seed

APRIL 30, 2015

There’s been a lot of digital ink spilled around the various types of capital available to startups today. As a startup grows, venture debt becomes a viable option to continue that growth. As a startup grows, venture debt becomes a viable option to continue that growth. What is it, and how should founders think about it?

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Both Sides of the Table

SEPTEMBER 25, 2010

Having re-read it, I believe his real premise instead is, “Fixed-size, multi-investor angel rounds are such a bad idea for startups that one wonders why things were ever done that way.&#. Either would be fine with startups, so long as they can easily change their valuation. When I’m in, I’m in. rings true to me.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Startup Professionals Musings

JANUARY 20, 2019

Most of these are easy to avoid if you do your homework up front, but can cost you dearly if you get sucked in. If you feel confused by conflicting time zones, differing currencies, and up-front costs, it’s time to run the other way. Deposit required to hold your terms. Work at home to fund your startup.

Technical Review 228

Technical Review Non-disclosure Agreement Due Diligence Term Sheet 228

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. Q: “If you have a term sheet on the table how should you leverage with other VCs?&#

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

David Teten

AUGUST 19, 2019

However, many industry experts question the accuracy of early-stage market data, given many startups are no longer filing their Form Ds. Feenix focuses solely on providing longer term growth capital to healthy companies looking to expand. Venture debt investors , who typically use a structure like this sample term sheet teardown.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

crowdSPRING Blog

JUNE 6, 2013

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! How to Turn Your Startup Into a Lean, Mean Marketing Machine – [link]. How to Turn Your Startup Into a Lean, Mean Marketing Machine – [link]. End of story.”

Social Media 95

Social Media Small Business Design Media 95

Both Sides of the Table

JANUARY 21, 2010

If you’re a startup and you don’t have a close relationship with a few law firms you’re really missing one of the most important relationships that any entrepreneur can have. I write about some of the lessons in my post on Startup Mistakes. Every town has firms that focus on startups – find them.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. That said, nothing is cost-free. More complex cost of capital calculation. Inversely, if the company has slower than predicted growth, the effective cost of capital is automatically lowered. Of the Inc. 5000 companies, only 6.5%

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Early Growth Financial Services

DECEMBER 4, 2014

But do you know what to do once you’re asked to sign a term sheet? Let me say that first, you should have already retained a good startup lawyer. Most investors will expect this.

Term Sheet 51

Term Sheet Liquidation Preference Vesting Option Pool 51

Startup Professionals Musings

JANUARY 18, 2017

Most of these are easy to avoid if you do your homework up front, but can cost you dearly if you get sucked in. If you feel confused by conflicting time zones, differing currencies, and up-front costs, it’s time to run the other way. Deposit required to hold your terms. Work at home to fund your startup.

Technical Review 120

Technical Review Non-disclosure Agreement Due Diligence Entrepreneur 120

Startup Professionals Musings

SEPTEMBER 26, 2013

Most of these are easy to avoid if you do your homework up front, but can cost you dearly if you get sucked in. If you feel confused by conflicting time zones, differing currencies, and up-front costs, it’s time to run the other way. Deposit required to hold your terms. Work at home to fund your startup.

Technical Review 202

Technical Review Non-disclosure Agreement Due Diligence Entrepreneur 202

YoungUpstarts

OCTOBER 28, 2015

Craig Schmitz, a partner in the Technology Companies Group at law firm Godwin Proctor LLP who works on corporate, governance, board and fundraising issues, and Erika Fisher, an associate in the firm’s Business Law Department who deals with IP, fielded questions about the legal issues startups face. ” The Cost of Financing.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

Startup Professionals Musings

AUGUST 3, 2015

Most new entrepreneurs assume that great investors will find their startups based on the compelling solution the founders have created. Thus it behooves every entrepreneur to optimize their investment strategies early, based on time and dollar costs, as well as odds of success. Follow up to learn expected terms and process time.

Cost 120

Cost Angel Groups Due Diligence Silicon Valley 120

Diego Basch

FEBRUARY 28, 2012

I read this story yesterday about a failed startup acquisition. It’s one of the big nightmares of an entrepreneur: Big Company shows interest in Startup. Startup day-to-day is disrupted during the lengthy acquisition process. Startup is now much worse off than before: less money, low morale.

Term Sheet 56

Term Sheet Redemption Acquisition Reputation 56

Both Sides of the Table

DECEMBER 17, 2009

Ability to Pivot – I don’t like to invest in people that I’ve never met before who come through my office wanting to have a term sheet within 30 days. Yes, there is the mythical company you all heard about that walked into Sequoia and had a term sheet 24 hours later. They were product and cost focused.

Entrepreneur 291

Entrepreneur Term Sheet Early Stage Affiliate 291

Both Sides of the Table

OCTOBER 19, 2009

On December 2nd, 2006 I wrote the blog post published later in this post when I was CEO of startup Koral about my experiences in pitching VCs. My blog linked to Brad Feld’s blog because I was so grateful for his series on term sheets and he was one of the biggest reasons that as a VC I felt compelled to blog.

Venture Capital 274

Venture Capital Term Sheet San Diego Viral 274

View from Seed

AUGUST 17, 2021

It’s conventional wisdom to say that it doesn’t, and that startups should keep their head down and execute. One of my side-project ideas is to try to create a new strategy course at a business school focused on startup competition. The cost of being incorrect becomes magnified as one has more than just capital to lose.

IRR 205

IRR Dilution Founder Portfolio 205

This is going to be BIG.

NOVEMBER 28, 2021

Over the last two and a half months in the hospital, I’ve actually been fairly productive—no doubt setting the record for VC term sheets offered literally from inside the NICU (three). In fact, it’s why many startup folks leave the early stage world to go over to the big company side—because the benefits tend to be much better.

Hiring 179

Hiring Early Stage Marketing Term Sheet 179

Both Sides of the Table

APRIL 25, 2013

We had them a term sheet the same week. Didn’t I make myself clear about celebrities & startups ? About the need to be careful about being the low-cost provider of physical products but risking not providing products that mom’s can feel safe using with their children. Startup Advice' Well, sort of.

Haiti 398

Haiti San Francisco Startup Turkey 398

View from Seed

AUGUST 17, 2021

It’s conventional wisdom to say that it doesn’t, and that startups should keep their head down and execute. One of my side-project ideas is to try to create a new strategy course at a business school focused on startup competition. The cost of being incorrect becomes magnified as one has more than just capital to lose.

IRR 156

IRR Dilution Founder Portfolio 156

Austin Startup

JULY 22, 2021

On October 4th, five technology startup finalists will pitch to a panel of advisors and judges made up of successful investors, entrepreneurs, and industry leaders. Any software, hardware, or CPG startup in Texas with a female founder or co-founder can apply to participate. Startups, submit your application now! Who Can Apply?

San Antonio 107

San Antonio Dallas Houston Founder 107

Startup Professionals Musings

APRIL 3, 2012

If your startup desperately needs an investor, you may not care if the investor is a so-called “angel” investor, or a venture capitalist (VC). But I have found that making the right choice at the right time can have a major impact on your long-term valuation, and the decision process is complex. Type of startup.

IRR 248

IRR Term Sheet Startup Valuation 248

Austin Startup

MARCH 16, 2021

Greetings from Houston Mural located in Houston Heights If your startup is located in the Houston region you may be eligible to compete for a $50,000 investment! Startups, submit your application Capital Factory Ventures Application Who Can Apply? They’ve raised $7.2 million in funding to date.

Houston 80

Houston San Antonio Dallas Texas 80

View from Seed

AUGUST 17, 2021

It’s conventional wisdom to say that it doesn’t, and that startups should keep their head down and execute. One of my side-project ideas is to try to create a new strategy course at a business school focused on startup competition. The cost of being incorrect becomes magnified as one has more than just capital to lose.

IRR 136

IRR Dilution Founder Portfolio 136

Startup Professionals Musings

APRIL 22, 2012

In fact, most angels are pure, but there are some exceptions that may cost you more than an investment: Shark angels. If the term sheet process turns to pure torture, it may be time to respectfully bow out. Also, make sure your lawyer writes the initial investment document or term sheet - not the investor.

Angel Investor 281

Angel Investor Term Sheet Entrepreneur Due Diligence 281

Startup Professionals Musings

MAY 26, 2013

In fact, most angels are pure, but there are some exceptions that may cost you more than an investment: Shark angels. If the term sheet process turns to pure torture, it may be time to respectfully bow out. Also, make sure your lawyer writes the initial investment document or term sheet - not the investor.

Angel Investor 263

Angel Investor Term Sheet Due Diligence Early Stage 263

Startup Professionals Musings

NOVEMBER 11, 2010

If your startup desperately needs an investor, you may not care if the investor is a so-called “angel” investor, or a venture capitalist (VC). But I have found that making the right choice at the right time can have a major impact on your long-term success, and the decision process is complex. Type of startup. Marty Zwilling.

IRR 225

IRR Startup Term Sheet Angel Investor 225

View from Seed

AUGUST 12, 2015

The game plan is then to show accelerating user growth across a variety of user segments and understandable/declining acquisition costs. In particular, he asked one very clever question of VCs to run a smoother, more effective process, culminating in four term sheets from interested, lead investors.

Seed Stage 120

Seed Stage Marketing Angel Investor Term Sheet 120

View from Seed

AUGUST 12, 2015

The game plan is then to show accelerating user growth across a variety of user segments and understandable/declining acquisition costs. In particular, he asked one very clever question of VCs to run a smoother, more effective process, culminating in four term sheets from interested, lead investors.

Seed Stage 120

Seed Stage Marketing Angel Investor Term Sheet 120

www.seriesseed.com

DECEMBER 9, 2012

Series Seed Term Sheet (v 2.0). Series Seed Term Sheet. Good idea, I think this will benefit lots of startups and some angels. All of those cost us as much if not more in legal time than the seed round. Ted: Great service to the startup community!   Series Seed COI (v 2.0).

Finance 40

Finance Term Sheet Vesting LLC 40

VC Cafe

OCTOBER 23, 2010

B ack in March, Andreessen Horowitz and Fenwick & West, LLP published a series of documents that would help structure early stage investments in startups. And finally, to quote the authors: In sum, Series Seed creates a level playing field between capped debt and equity documents in terms of speed and cost.

Early Stage 79

Early Stage Term Sheet Preferred Stock Equity 79

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

Gust

SEPTEMBER 29, 2011

The most successful serial entrepreneurs in the world may found three or four, perhaps even eight or ten venture-backed startups over the course of their careers. For more on working with startup lawyers, see Mark Suster’s classic post, How To Work With Lawyers At A Startup.). Knowledge is power. There are two principal reasons.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). This post assumes that you have a basic understanding of Series A financing terms. Y Combinator Series AA Equity Financing Documents (by WSGR). Dividend preference.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Both Sides of the Table

JULY 11, 2010

I recently wrote a blog post about why I believe that startup teams in close proximity perform better. I’m surprised how few people talk about valuations, term sheet terms, how much to pay recruiters, etc. As they showed me around the CIC I was instantly envious. It has big wide open spaces for such events.

San Francisco 285

San Francisco Incubator Silicon Valley Startup 285

Both Sides of the Table

JANUARY 31, 2011

If you’ve taken the roller coaster ride that is a startup – you know what I’m talking about. The truth is that in my experience very, very few people really enjoy the “pure&# startup environment: months with no salary, months with no live product and lots of trial, error & rejection. But we had a term sheet !!!

Entrepreneur 384

Entrepreneur Startup Salary Egypt 384