The Startup Magazine

JULY 17, 2022

If the certifying organization verifies that your initiative is a research and development project, you are legally entitled to receive financing. To do this, the qualifying expenditures must be established and documented with precision. The creation of concepts, in addition to planning and documentation.

Developer 155

Developer Germany Software Developers Software Development 155

View from Seed

MARCH 24, 2021

Free Template for Great Startup Pitch Decks, Direct from VCs. What Are Your Valuation Expectations? ’ like all startups have to, but also “why invest now?'” Seed stage startups are now graded on a curve.” After each mini-excerpt, you’ll find the author of the piece in parentheses. Happy reading!

Seed Stage 178

Seed Stage Hiring IPO Analytics 178

Both Sides of the Table

SEPTEMBER 10, 2021

And the loosening of federal monetary policies, particularly in the US, has pushed more dollars into the venture ecosystems at every stage of financing. What Has Changed in Financing? On the one hand, you’re over paying for every investment and valuations aren’t rational. even before the pandemic itself has been fully tamed.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. Term-sheets and Valuations: Thinking about Negotiations. The Valuation Question. When companies seeking their first round of serious funding are good enough to receive a term-sheet from an investor, the first issue that always arises is valuation. Let’s start at the end.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

JANUARY 22, 2020

As a long-time advisor to entrepreneurs, and a former angel myself, I still find startups confused about the definition of an angel investor, and how and when to attract one. You need to know why and how they invest, and then focus on the ones who are the best match for your startup. Document your plan and your financial projections.

Angel Investor 322

Angel Investor Valuation Syndicate Syndication 322

Both Sides of the Table

MARCH 21, 2013

I recently wrote a blog post in which I pointed out that many investors & advisors discourage enterprise startups from having a professional services (PS) business and I think this is a big mistake. I think it’s important for enterprise startups to layer in professional services into your revenue stream.

Software Review 321

Software Review Software IP Technical Review 321

Gust

SEPTEMBER 27, 2014

To begin with, it is important to understand some basic facts about the world of entrepreneurial finance: There are many more entrepreneurs than there are investors, with the result that only one company out of every 400 that seeks venture funding actually receives it.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Gust

SEPTEMBER 29, 2011

The most successful serial entrepreneurs in the world may found three or four, perhaps even eight or ten venture-backed startups over the course of their careers. It should therefore come as no surprise that an asymmetry of information exists, mostly gleaned from experience, between founders and investors in a venture financing deal.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

The Startup Magazine

SEPTEMBER 12, 2022

A home mortgage refinancing allows you to save money or tap equity you can use for your startup business. The common charges you may pay include; Early termination fees. Loan establishment fees. Valuation. Lenders mortgage insurance. Mortgage stamp duty. Review and Sign the Loan Documents.

Equity 136

Equity Valuation Cost Startup 136

Startup Professionals Musings

AUGUST 7, 2013

Although every startup is unique, there are certain common avoidable mistakes that can lead to legal complications which jeopardize the long-term success of the business. Here are five of the most common examples: Failure to document a Founder agreement at the beginning. Trouble with the IRS over Founders stock value.

Non-Compete 235

Non-Compete Accredited Investor Startup Cofounder 235

Pascal's View

JULY 9, 2017

This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. But it is also a topic that many find esoteric and difficult to grasp.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

Startup Professionals Musings

JULY 10, 2012

Although every startup is unique, there are certain common avoidable mistakes that can lead to legal complications which jeopardize the long-term success of the business. Here are five of the most common examples: Failure to document a Founder agreement at the beginning. Trouble with the IRS over Founders stock value.

Non-Compete 249

Non-Compete Accredited Investor Cofounder Startup 249

Feld Thoughts

JULY 29, 2011

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Equity 137

Equity Finance Pre-Money Valuation Denver 137

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” For a good summary with links to the documents, see Leena Rao’s post at TechCrunch. Convertible debt?

Finance 134

Finance Convertible Security Equity Seed Stage 134

Version One Ventures

OCTOBER 15, 2020

Let’s now explore the major developments and ultimate use cases for the Lightning Network in two categories: A) payments/finance and B) Web3. . Use Case I: Payments and Finance . As Chris Dixon documents in his seminal essay on Why Decentralization Matters , open networks always ultimately win. 1) Generalizable Payments .

Networking 168

Networking Global OTC Security 168

Lightspeed Venture Partners

OCTOBER 7, 2012

In the real world a fund raising process takes 90 days on average to get to a termsheet, where deal terms are agreed, and another 30-45 days of legal and financial diligence before the legal documents are finalized and the money is wired. So the entrepreneur was willing to accept a valuation more than $10M lower than a previous valuation.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

View from Seed

OCTOBER 15, 2014

Over the summer, based on feedback from our portfolio and the broader startup community, NextView created pre-formatted board deck templates for seed-stage startups — part of our Growth Guides series. Finance is mission critical, for instance – it just appears on a recurring basis.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

Austin Startup

AUGUST 20, 2017

August 20, 2017: This is another in my series of posts all leading up to a book on Startup Decision Making. One of the most common mistakes I see in startups is making decisions that lose sight of the context , including the past, present, and future. Sooner or later everybody in a startup knows what everyone else is getting paid.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Gust

MARCH 8, 2014

While it sounds tautological, the most important thing a law firm brings to the startup table is… a knowledge of the law surrounding everything having to do with founding, financing and operating a startup! Invested Interests attorneys business entrepreneur law firm startups'

Warrant 156

Warrant Startup Valuation Finance 156

Gust

OCTOBER 21, 2011

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. Suppose the notes converted as if the acquisition were an eligible financing round.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

mashable.com

OCTOBER 16, 2010

During a presentation at Startup School at Stanford University earlier today, the prolific investor discussed the state of startup funding with a packed auditorium of students and entrepreneurs. These investors usually raise a smaller fund and make investments into startups that range in the hundreds of thousands of dollars.

Angel Investor 84

Angel Investor Venture Capital Social Media Technical Review 84

mashable.com

OCTOBER 16, 2010

During a presentation at Startup School at Stanford University earlier today, the prolific investor discussed the state of startup funding with a packed auditorium of students and entrepreneurs. These investors usually raise a smaller fund and make investments into startups that range in the hundreds of thousands of dollars.

Angel Investor 83

Angel Investor Venture Capital Social Media Technical Review 83

Gust

OCTOBER 12, 2011

Last week , we took the plunge and began dissecting an example term sheet for a convertible debt financing round piece by piece. In Part II, we looked at the mandatory conversion language that is at the heart of any convertible debt financing. First, a word about the maturity date.

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

The Startup Magazine

MAY 22, 2024

Application Process To pre-qualify for a personal loan, applicants submit an initial application detailing proof of identity (like a driver’s license), proof of address (such as a utility bill), and income verification documents. They must ensure that all necessary documents are in order, which may include proof of identity and address.

Security 78

Security Cost Management Startup 78

Scott Edward Walker

APRIL 9, 2012

Introduction We are in the golden age of seed financing. Venture capital funds, seed funds, super angels, angel groups, incubators, and “friends and family” are all playing the seed financing game and investing early in startups in an attempt to land the next Facebook.

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

Startup Professionals Musings

APRIL 24, 2011

billion to work across 738 financing deals with U.S. billion jump in funding over the same quarter of 2010 with a similar number of deals, so it clearly shows a trend to larger deal sizes for fewer startups. To me, this indicates that venture capitalists (VCs) are looking for business, but not from first-time startups.

Venture Capital 233

Venture Capital Revenue Elevator Pitch Silicon Valley 233

Gust

OCTOBER 5, 2011

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. As with so many subjects in law and finance, mastering the jargon is half the battle. This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

ithacaVC

FEBRUARY 12, 2016

I recently dealt with a tense situation regarding the “Qualified Financing” trigger in a standard convertible note financing. For background, convertible debt documents typically provide that the debt will automatically convert into a future0 Qualified Financing equity round. I am now going to use it again.

Finance 40

Finance Equity Valuation Security 40

Startup Professionals Musings

MAY 2, 2011

Although every startup is unique, there are certain common avoidable mistakes that can lead to legal complications which jeopardize the long-term success of the business. Here are five of the most common examples: Failure to document a founder agreement at the beginning. Trouble with the IRS over founders stock value.

Non-Compete 246

Non-Compete Accredited Investor Entrepreneur Cofounder 246

www.quora.com

JANUARY 16, 2011

Find Questions, Topics and People Add Question Add Question Venture Capital Venture Capital Term Sheets Startups Term Sheets What are examples of good startup term sheets? Ted Wang (Fenwick & West) created the "Series Seed" set of documents [link] /files/. [I Anon User, Chad Lomax , Maor Ezer and Jay Liew 1.

Term Sheet 41

Term Sheet Startup Angel Investor Wiki 41

Haystack

JULY 8, 2018

And with this, every year, a new cohort enters into the “tech startup” world, and there’s no official canon to read, no “one-stop shopping” site or user manual to get briefed on the things you absolutely need to know. You can read more about the types of stock granted in startups here.

Early Stage 95

Early Stage Dilution Private Equity Common Stock 95

Up and Running

JUNE 14, 2017

In both scenarios, it seems that startup venture initiation and idea validation are strictly dependent on the app. To determine the viability of an app or startup idea without building out the full solution, entrepreneurs should: Test potential buyers’ real buying intentions by monitoring their willingness to pay for a beta version.

Technical Review 96

Technical Review Distribution Redemption Demand 96

YoungUpstarts

APRIL 18, 2019

In the uber-competitive startup world, surviving is success in itself. Conventional wisdom says that 90% of startups will fail. As a founder, you have to come to terms with not having complete control — of your team, the market, or your valuation. The same is true for tech startups. We’re not worth a billion dollars.

Cofounder 127

Cofounder Startup Private Equity Equity 127

Startup Professionals Musings

APRIL 19, 2010

Although every startup is unique, there are certain common avoidable mistakes that can lead to legal complications which jeopardize the long-term success of the business. Here are some examples: Failure to document a founder agreement at the beginning. Business plans and other documents should always be labeled as confidential.

Non-Compete 125

Non-Compete Accredited Investor Startup Cofounder 125

Both Sides of the Table

SEPTEMBER 5, 2012

Was Paul Graham right in his “high resolution” financing post? If I could persuade you that they’re already in these documents would you consider abandoning this structure? Some thoughts on raising angel money. So let me weigh in more loudly than in the past. They’ll get priced soon enough by a VC.”

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

Up and Running

JULY 22, 2019

A lack of market need is the number one reason startups fail , suggesting that companies need a better way of evaluating the state of the market before launching their business within it. Start early not by asking for money right away, but by engaging the help you need to structure the next round of financing. Start early.

Canada 78

Canada Early Stage Valuation Finance 78

The Startup Magazine

JUNE 8, 2022

Recording financial information, generating documentation related to finance, and doing analysis of financial data are all part of what is involved in accounting. The primary focus of public accounting is preparing financial documentation for clients that are required to be made public, such as tax documents.

CPA 133

CPA Dallas Software Review Technical Review 133