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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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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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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

In this case, fully-burdened is not just the salary, bonus, and benefits of the sales rep, but also allocations for sales engineering support, executive support, marketing expense, and professional service expenses associate with securing the customer. Note: high CAC ratio means high productiviy (see blog post for definition).

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The Dos And Don’ts Of Selling Your Business

Duct Tape Marketing

Banks are gonna have different sets of definitions. And so willing to make an investment to, to secure that income. Let's talk about some of the deal structures you've seen. So small businesses, and I use, I don't like the term small business because different groups have different ways of defining it. 09:23): Sure.

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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

If I was a full time consultant in IT security (where I have 5 years experience) and then signed a non-compete, I’d be putting myself out of work for a year without receiving a penny. Three Card Monty Corporate Structures. One year is a long time in the tech world. That’s a tough sell.

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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. On the investor side, representations and warranties in the purchase agreement primarily relate to securities law compliance.

Finance 79