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Keep Term Sheets Simple for Quicker Cash to Spend

Gust

Remember a term sheet agreement is not a deal until the check clears. Anti-dilution protection. But some dilution is almost inevitable.

Keep Term Sheets Simple for Quicker Cash to Spend

Startup Professionals Musings

Remember a term sheet agreement is not a deal until the check clears. Anti-dilution protection. But some dilution is almost inevitable.

That convert you raised last year is a part of your cap table

Seth Levine's VC Adventure

When it comes to convertible debt, I’ve had a few instances recently where “out of sight, out of mind” has created some misunderstandings around deal structures. But factor in that convertible debt above and you’re actually taking more like 50% dilution from the ownership reflected on your pre-convert cap table.

That convert you raised last year is a part of your cap table

Seth Levine's VC Adventure

When it comes to convertible debt, I’ve had a few instances recently where “out of sight, out of mind” has created some misunderstandings around deal structures. But factor in that convertible debt above and you’re actually taking more like 50% dilution from the ownership reflected on your pre-convert cap table.

allensblog: "Fully-Diluted"

Allen's Blog

Fully-Diluted". In a deal recently, the term sheet offered by the prospective investor contained a reference to the term: "fully-diluted" The company accepted the term sheet and the lawyers drafted the documents. Listed below are links to weblogs that reference "Fully-Diluted" : Comments. allensblog. Archives. Profile.

Knowledge Is Power: Convertible Note Financing Terms, Part IV

Gust

In Parts II and III, we looked at commonly used mandatory and voluntary conversion language in convertible notes.  To account for scenarios in which the startup is acquired before it has a chance to complete a priced equity financing round, most term sheets and deal documents contain a “ change in control ” provision. 

The downside of high valuations

StartupCFO

When it comes to deal structuring, the higher you push the valuation, the more “protections&# investors will build in. This can be dilutive depending on how long the shares are out there. Ratchets : It is standard to have what is known as a weighted average anti dilution protection. Valuations are high.

Startup Blog: 7 Questions You May Get from Potential Investors

Taffy Williams

also try very hard to not give the answer unless we are approaching the investors with a very specific deal structure for the investment.

Include Deal Terms or Not?

Mark Birch

I had a discussion the other night with an entrepreneur about whether to include specific deal terms in the pitch deck or investor meetings. 

Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

It’s a rare occurrence to see traditional development firms take all equity deals in exchange for cash. mentor VCs, e.g., most VCs. The cliffs?

Goldman Sachs / SEC: political witch-hunting is no way to change a market

Fred Destin

We were subject to losses and we did not structure a portfolio that was designed to lose money. Pro-life / pro-choice type debates lead nowhere.