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Keep Term Sheets Simple for Quicker Cash to Spend


Remember a term sheet agreement is not a deal until the check clears. Seat on the board. Define equity type.

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. entrepreneurs startups angel investors term sheets busines

Both sides must be fair in a term sheet negotiation.


good example was during the negotiation of a term sheet. By Basil Peters. Email readers, continue here.]  Raising money

in search of.the ideal term sheet

Seed Stage Capital

For any large deal, they will convert and be treated like the founders and employees. You can download it on docstoc here. Please share it!

allensblog: "Fully-Diluted"

Allen's Blog

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. The term "fully-diluted", unlike some legal terms, is not defined by any law or regulation.

Knowledge Is Power: Convertible Note Financing Terms, Part II


Last week , we gave some attention to the “why” behind convertible note financing for early stage startups.  In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal.  This paragraph is the heart of the whole deal.  On to more specific terms next week. 

Notes on the acquisition process

Chris Dixon

Moreover, some public companies insist that you don’t talk to employees until the deal is closed or almost closed. Deal structure: the cap table is an agreement between you and the shareholders that says, in effect: “If we sell the company, this is how we pay out founders, employees, and investors.” startups

Bring something to the party when working with others

Taffy Williams

In a different situation, a prospective partner asked a company for a term sheet for a deal. Let me digress for a minute.

Later-stage rounds and “setting the bar too high”

Chris Dixon

These are negotiable terms and startups with momentum should be very careful about giving them away. These CEOs are worrying too much. startup

How to value your company for sale (Part 2)

A Smart Bear: Startups and Marketing for Geeks

Remember how the buyer has his own way of valuing the deal ? It’s not the number, it’s the whole term sheet. 10,000?

Knowledge Is Power: Convertible Note Financing Terms, Part V


As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. Returning to our sample term sheet: Note Purchase Agreement. Invested Interests angel investment deal terms fundraising startups venture capital

Knowledge Is Power: Convertible Note Financing Terms, Part IV


Readers joining this series in progress may find it helpful to download the sample term sheet from my firm’s website and review the earlier posts covering the basics. The company pays off the notes immediately according to their terms, with prorated interest.  Most would agree this is not a fair outcome.

Piercing the Corporate Veil of Sweat Equity

As such, you should make sure to think of the proposals as an investor and get a reasonable term sheet. Go for it.

Clean Deal Terms

David Lee

Sam Altman has a nice post here on a founder-friendly term sheet. He said one thing there that I agree with 100%, among others: I have an allergic reaction to complex deal structures, as they invariably end up with all sorts of unintended consequences. link). One glaring example is the “super pro-rata right of X%.”

Angel Investing is Where VC was 25 Years Ago

Angel Blog

As I attended sessions, and had conversations, on everything from deal structures to term sheets and deal flow to exits, it occurred to me that I had been in similar conferences about 25 years ago. Last week, I was at the Angel Capital Association annual conference in Atlanta. Those are the fundamentals.

The downside of high valuations


In times of rising valuations, it is important for entrepreneurs to think about their long term funding strategy and choose a valuation that is sustainable not just today but over the whole life cycle of your company. When it comes to deal structuring, the higher you push the valuation, the more “protections&# investors will build in.