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When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

By definition, all entrepreneurs should think that their endeavor is truly exceptional and above average. But, also by definition, that just can’t be the case. I’ve frequently observed that when founders ask for above-market valuations, it’s not due to their savvy negotiation or their abilities to secure a more favorable outcome.

Valuation 336
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Knowing When It’s Time To Sell Your Startup

YoungUpstarts

Others are building their companies with the definitive intention of selling them. The founders sold the two year old company to eBay in 2005 for $2.6 Negotiating a different deal structure could have prevented the price from dropping. Today, many startups are succumbing to the temptation to sell their companies early.

IPO 162
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The Pre-Seed FAQ

K9 Ventures

So, I took it upon myself as a challenge to put together the definitive “ Pre-Seed FAQ.” I’ll start with all the questions I can think of, from many different perspectives: founders, LPs, the press, and even other VCs. Q: Does a Pre-Seed require founders to give up more equity in the company? By definition, yes.

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Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

A term sheet keeps things relatively straightforward by summarizing the most significant deal terms in outline form, whereas the deal documents themselves (often referred to as definitive agreements ) — even for a relatively simple convertible debt financing — inevitably contain some densely written legalese.

Finance 79
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Who Invests In Investors: Homebrew LP Shares VC Performance Goals, Importance of Diversity & What They Look For In New Funds

Hunter Walker

Oh and Anne is DEFINITELY still interested in venture as part of Hamilton’s investment strategy. Similarly, a GP might be in the middle of great flow, but we need to have conviction that they can identify the right deals, structure creatively, and negotiate effectively. What would your advice be?

LP 48
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Knowledge Is Power: Convertible Note Financing Terms, Part V

Gust

The Notes will be issued pursuant to a definitive Note Purchase Agreement containing customary covenants, representations and warranties of the Company. The Note Purchase Agreement and Convertible Promissory Note are essential documents for any convertible note financing. Returning to our sample term sheet: Note Purchase Agreement.

Finance 79
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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

« Thanks but No Thanks – Things to Avoid When Recruiting Co-founders Why is Cyber Squatter a Bad Word? Some have been as co-founder, most have been as a consultant with the possibility of becoming an paid employee, “as soon as we close our funding round.” Which corporate entity do the founders own stock in?