Both Sides of the Table

MAY 28, 2018

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. Founder: “$8–10 million” VC: “What’s your current burn rate?” Founder: “$250k / month.” Founder: “Um. Why are you raising so much?” Let me check my plan.”

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

This is going to be BIG.

MAY 17, 2012

That means that founders as a group will be right around 50% ownership after two rounds. Note that, to even get venture in the first place, you are special. Getting less dilution than standard means that you have to have made fantastic progress, have a world class team, etc. It's a function of a few things.

Venture Capital 116

Venture Capital Framework Dilution Equity 116

David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

ReadWriteStart

SEPTEMBER 9, 2019

Although some founders take venture capital in exchange for equity, that’s not the only way to do it. To learn more about the pros and cons of venture capital — and founders’ funding alternatives — I caught up with Mark McKee. Mark McKee : Most first-time founders I’ve met don’t, frankly.

Venture Capital 105

Venture Capital Equity SBA Finance 105

View from Seed

DECEMBER 4, 2019

For example, a $10B endowment might be looking to have 10% ($1B) allocated to venture capital at any one time. So, if the venture asset class performs well in terms of unrealized mark-ups, the % of VC relative to the total portfolio actually increases. appeared first on NextView Ventures.

LP 256

LP IRR Distribution Portfolio 256

YoungUpstarts

JULY 31, 2019

by Anish Sebastian and Juan Pablo Segura, co-founders of Babyscripts. Of course, a certain amount of initial capital without financial performance is absolutely necessary to get a business off the ground, especially in regulated industries. Many would argue that even the most theoretically scalable products in healthcare, i.e

Cofounder 127

Cofounder Burn Rate Technical Cofounder Seed Capital 127

Both Sides of the Table

SEPTEMBER 10, 2021

how on Earth could the venture capital market stand still? One of the most common questions I’m asked by people intrigued by but also scared by venture capital and technology markets is some variant of, “Aren’t technology markets way overvalued? two founders in a garage?—?(HP Of course we can’t. dot-com bonanza.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

ReadWriteStart

OCTOBER 28, 2010

Do More Faster: TechStars Lessons to Accelerate Your Startup is the new book by David Cohen , founder and CEO of TechStars, and Brad Feld , managing director of Foundry Group. Below is his chapter, Avoid Co-Founder Conflict. A perennial favorite is to decide that each founder should own an equal share. Can any of us be fired?

Cofounder 128

Cofounder Founder Equity Dilution 128

Startup Professionals Musings

FEBRUARY 27, 2023

Every startup needs to start their funding search looking for grants, with no equity dilution, as well as contests and foundations. These often lead to angel investors and venture capital investments later, or connections to local company venture funds for selected focus and technology areas.

Arizona 276

Arizona Intellectual Property Accredited Investor Entrepreneur 276

Startup Professionals Musings

MAY 9, 2014

David is also the CEO of Gust , which is an online platform for startup financing used by over 50,000 accredited angel investors, 1000 angel groups and venture capital funds, and 250,000 entrepreneurs. It doesn’t seem to matter what the founders’ projections are, or how fast they believe they will turn profitable.

Angel Investor 278

Angel Investor Angel Groups Accredited Investor IRR 278

David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance.

Revenue 60

Revenue Technical Review Software Review Equity 60

Altgate

DECEMBER 15, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← No one wants to tell you your baby is ugly More on Liquidation Preferences → Pre-Money Valuation vs Number of Founders Posted on December 15, 2010 by admin Here’s a chart of the day worth sharing.

Pre-Money Valuation 66

Pre-Money Valuation Valuation Cofounder Founder 66

Both Sides of the Table

SEPTEMBER 25, 2010

Paul Graham’s assertion that “any startup founder can tell you the most common question they hear from investors is not about the founders or the product, but “who else is investing?&# Tags: Raising Venture Capital Startup Advice Tech Market Analysis Term Sheets. When I’m in, I’m in.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Up and Running

JULY 2, 2014

of our company in exchange for the $300K, and my business partner and I each diluted from 50% ownership down to 33.3% ownership and never dilute. When fundraising for a startup, all investors dilute as additional investors join in on the deal. The deal we made with him was he’d get 33.3%

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Both Sides of the Table

OCTOBER 12, 2014

The number of these groups that did “direct” investments in venture capital used to be relatively small. This might happen because to meet all investors needs they end up selling too much of the company, taking too much dilution and feeling beat up. As I like to point out, the truth is often more nuanced.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

ReadWriteStart

JUNE 1, 2020

Under this category, you have the angel investors who would invest their own money and Venture Capital or VC firms, who manage funds aimed towards specific startup sectors and stages. I have interacted with a lot of founders who funded their initial business expenses through credit cards. Capital is expensive.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

MAY 30, 2020

Every startup needs to start their funding search looking for grants, with no equity dilution, as well as contests and foundations. These often lead to angel investors and venture capital investments later, or connections to local company venture funds for selected focus and technology areas.

Arizona 310

Arizona Intellectual Property Accredited Investor Dividend 310

Startup Professionals Musings

JUNE 5, 2015

David is one of the most active angel investors in New York, and also the CEO of Gust , which is an online platform for startup financing used by over 45,000 accredited angel investors, 1000 angel groups and venture capital funds, and 200,000 entrepreneurs. billion collected in 2014. All startups always need more money.

Angel Investor 120

Angel Investor Angel Groups Accredited Investor IRR 120

Both Sides of the Table

APRIL 14, 2010

If you want to raise venture capital more easily the advice could be quite practical and counter-intuitive. Many companies that are raising B or C venture capital rounds right now raised their initial money in 2005-2008. management, founders, angel investors) get any money. It is 2010.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Dividend 289

This is going to be BIG.

OCTOBER 3, 2017

But, you don't feel like that as the founder. I'm just trying to get the best price possible for my investors, and you're just trying to take the least dilution. A million dollars on the pre-money now pales in comparison to the dilution of having to take a few more rounds down the line. But back to us.

Venture Capital 71

Venture Capital Dilution Term Sheet Lead Investor 71

VC Cafe

SEPTEMBER 28, 2023

The Carta data showed the following trends: About half of the companies that closed had not raised any venture capital, relying solely on bootstrapping, angel investors, or other sources. For those that did tap VCs, 90% were either Seed or Series A stage companies. It comes with the territory.

Valuation 104

Valuation Startup Angel Investor Dilution 104

Both Sides of the Table

SEPTEMBER 28, 2014

by Michael Woolf that is worth any startup founder reading to get a sense of perspective on the reality warp that is startup world during a frothy market such as 1997-1999, 2005-2007 or 2012-2014. On the other hand, exits at lower prices are easier with these providers of capital.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

ithacaVC

SEPTEMBER 10, 2012

I recently got a question from a person in a large company who is thinking about joining a startup that expects to raise venture capital. But here is one that I want to focus on in this post: “Can I ask for undiluted stock (non dilution clause)?” It is legally possible to grant non-dilution via a contractual right.

Dilution 53

Dilution Employee Cap Table Stock 53

K9 Ventures

JUNE 12, 2012

While it it may not feel that way, the data suggest that there is indeed too much capital in the system — especially so at the seed stage, with more and more individuals and larger funds trying to invest in companies at this stage.). For most venture capital funds money is a commodity. It is a tool.

Venture Capital 117

Venture Capital Silicon Valley Founder Seed Stage 117

VC Adventure

AUGUST 16, 2020

The data change over time and, frankly, I’m less interested in debating what % grant your Director of Product Management should receive given your stage of company and capital raised, and more interested in the structure of your program. It strikes me that many founders never really consider this question.

Programming 149

Programming Vesting Equity Software Review 149

K9 Ventures

JUNE 12, 2012

While it it may not feel that way, the data suggest that there is indeed too much capital in the system — especially so at the seed stage, with more and more individuals and larger funds trying to invest in companies at this stage.). For most venture capital funds money is a commodity. It is a tool.

Venture Capital 105

Venture Capital Silicon Valley Founder Seed Stage 105

David Teten

SEPTEMBER 2, 2017

It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. These are many of the steps I went through when I joined HOF Capital. We believe the best founders and companies are polarizing. Yes, any of our team members can say yes.

Private Equity 60

Private Equity Venture Capital Equity Partner 60

ReadWriteStart

APRIL 4, 2023

While these fees may seem reasonable at first glance, they can add up quickly and significantly impact the amount of capital that the startup receives from the crowdfunding campaign. Too many lenders to keep track of makes it hard to manage the various people who have a stake in your venture and their different expectations.

Startup 141

Startup Campaign Cofounder Venture Capital 141

Both Sides of the Table

JULY 17, 2018

One thing that comes with being a venture capitalist is you see hundreds and hundreds of businesses. You get to have interesting conversations with founders and review business plans and then see how these businesses evolve over the years. But if you want to add some in the comments section on Medium and I’ll make sure to read them.

Founder 242

Founder Dilution Software Review Later Stage 242

The Equity Kicker

MARCH 14, 2012

Forty-ninth in a series of weekly posts by myself and Nicholas Lovell of Gamesbrief which answer the fifty questions you should ask before raising venture capital. The heart of a venture capital deal is an exchange of cash today for an obligation to grow the value of your company and eventually find an exit.

Venture Capital 104

Venture Capital Dilution Early Stage Equity 104

The Equity Kicker

JULY 4, 2012

This is how we described our aims for the series at the outset : Our hope is that the posts (and eventually the book) will be a good resource for anyone who is thinking about how to finance their company and who wants to understand more about the options, including venture capital. The process starts well, then stalls.

Venture Capital 107

Venture Capital Due Diligence Participating Preferred Dilution 107

Scott Edward Walker

JULY 7, 2011

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. What Are the Key Issues for Founders? There are several issues founders should focus on in connection with redemption rights.

Term Sheet 49

Term Sheet Redemption Venture Capital Preferred Stock 49

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). If you don’t, please educate yourself on this site, Venture Hacks and the term sheet series by Brad Feld/Jason Mendelson, among other places. Anti-dilution protection.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

VC Cafe

FEBRUARY 28, 2020

There are many good startup resources out there, and it can be confusing for founders to know which one to pay attention to. The guide details how can founders use information to create leverage. YC shares some interesting data points based on their follow on experience with core KPIs, valuation range and expected dilution.

Dilution 166

Dilution Valuation Founder Cost 166

Steve Blank

APRIL 10, 2019

In tech startups stock options were here almost from the beginning, first offered to the founders in 1957 at Fairchild Semiconductor , the first chip startup in Silicon Valley. As Venture Capital emerged as an industry in the mid 1970’s, investors in venture-funded startups began to give stock options to all their employees.

Stock Options 333

Stock Options Stock Vesting Common Stock 333

Startup Professionals Musings

FEBRUARY 9, 2018

In fact, research by Fundable shows that less than one percent of all startups are funded by venture capital and angel investors. I find that most good founders proceed faster on their own, with less drain on their time from peers and programs, and no equity dilution. All successful businesses start with a business plan.

Incubator 180

Incubator Angel Investor Dilution Equity 180

Both Sides of the Table

JUNE 5, 2011

I’ve decided to take all of my private conversations and subjective points-of-view on the topic and make them public in a keynote speech at the Founder Showcase in San Francisco on June 15th. They get a cheaper price, they wipe out much founder stock value and they reissue you new options. Raise at the top end of normal.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336