Pascal's View

JULY 9, 2017

At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. Company Y receives an offer from an angel or ‘unsophisticated’ smaller VC fund that is unwilling to lead and price the equity but wants to ‘invest now’.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

techcrunch.com

APRIL 26, 2013

As we wrote last December, the investment tool lets accredited investors put as little as $1,000 each into startup companies that it’s created an investment vehicle for. Via SecondMarket, AngelList creates an LLC on the fly into which all the new investors go. Using today’s data on AngelList, that includes 300 startups.

SEC 61

SEC Accredited Investor San Diego New York City 61

www.xconomy.com

JUNE 9, 2012

“The last thing you wanted was any more VCs like that,” says Coats, who began thinking that what lead VCs and entrepreneurs really want was additional venture investors whose participation would be less complicated—more like a co-investor—and who could decide on joining in a deal in a week or two.

San Diego 40

San Diego Venture Capital Technical Review San Francisco 40

Haystack

SEPTEMBER 2, 2018

Yes, sure, some of them are “rolling” closes where the investor who commits signs a document (usually a SAFE note) and then wires around that time. But, again, the majority of those rounds were coordinated to have documents circulated and wires set at a specific time.

Seed Stage 76

Seed Stage Seed Capital Equity Europe 76

Startup Professionals Musings

AUGUST 29, 2016

Just like professional investors wait for friends and family to go first, friends will wait for you to show “skin in the game.” A startup founder that is not the “lead investor” in time and money should not expect anyone else to jump in front and lead the way. Document your commitments, as well as theirs.

Elevator Pitch 151

Elevator Pitch Exit Strategy Angel Investor Equity 151

David Teten

JANUARY 7, 2019

A retail investor might join an existing syndicate on a crowdfunding site based on a deck and maybe an email. However, usually the biggest challenge for a company is finding a lead investor, and that requires one or typically more meetings. . At the majority of VCs (including ours), you don’t just have to persuade one Partner.

Syndicate 60

Syndicate Syndication Dilution Partner 60

BeyondVC

SEPTEMBER 13, 2006

Make sure your basic finances are in order and that all customer contracts, employment-related documents, financing paperwork, etc. So in order to satisfy the acquirer’s needs, all your company has to do is find the signed documents for the key technical founders. is all stored properly and securely.

Technical Review 60

Technical Review Intellectual Property Cofounder Due Diligence 60

Hippoland

JANUARY 4, 2017

Usually, an equity round is kicked off by a “lead investor”. Typically, this lead investor decides the terms of the round and also invests the majority of the money that will go into your company. That lead investor will also usually help you fill out the remainder of your round with other investors.

Convertible Security 48

Convertible Security Equity Security Silicon Valley 48

Gust

AUGUST 6, 2014

Other investors will be invited to put in money on the same terms as the lead investor (and thus, as part of the same round.). However, because it is so damn difficult to get that lead investor, companies will often be desperate enough to try shortcuts. So what does usually happen?

Term Sheet 170

Term Sheet Lead Investor Preferred Stock Common Stock 170

Gust

OCTOBER 26, 2011

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. Having made it almost to the end of our sample term sheet: Documentation. First, it’s worth noting that we’re proposing to have Company counsel draft the documents.

Finance 79

Finance Term Sheet Covenant Accredited Investor 79

Business Plan Blog

DECEMBER 26, 2013

The individual is likely to be the lead investor in the venture and may join the Board of Directors. This process may include the provision of various scenarios on revenues and costs as the investors validate forecasts initially presented. Amount to be invested. Pre-money valuation. Type of security and structure.

Angel Investor 51

Angel Investor Due Diligence Pre-Money Valuation Angel Groups 51

mashable.com

NOVEMBER 2, 2011

Don’t make it sound like a form letter, however, but have your reply and supporting documents ready to go. Look for Your Lead Investor. First you’ll want to find a lead investor — someone many other investors will recognize and respect. Here are some valuable templates you can use.

Social Media 80

Social Media Startup Angel Investor RSS 80

Startup Lessons Learned

JULY 2, 2020

I think I took the first two or three meetings with Fred's lead investor, which is pretty funny. Eric Ries : So, what was the investor reaction like? Fred Turner : We have created a bunch of documentation on how to stand up these drive-throughs and then how to do that. Nobody batted their eyelids too much.

Curation 60

Curation Government Los Angeles Partner 60

reidhoffman.org

NOVEMBER 12, 2013

LinkedIn would create a networked resume document — a resume 2.0 — instead of traditional job listings with private resumes. Even though we glossed over those slides, investors knew they could come back to those slides later and dig into them if necessary. We are the market leader in establishing the network.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

David Teten

JUNE 12, 2014

As a result, we launched the Fast Track program, which helps VCs and active investors who are HBSAANY members to syndicate rounds with value-added members of our network. Following a lead investor is valuable education, as it gives the coinvestors access to the deal documents and some of the process used by the lead.

New York 114

New York Connecticut Angel Groups Florida 114

Venture Chronicles

JULY 16, 2010

At this point the legal counsel for both parties is actively working to draft the exhaustive collection of legal documents that codify the investment and the rights allocated to the various investor classes. Regulatory paperwork is prepared and the investment is prepared for presentation to the limited partners for funding.

Due Diligence 28

Due Diligence Term Sheet Limited Partner LP 28

www.paulgraham.com

APRIL 28, 2010

Mechanics Angel investors often syndicate deals, which means they join togetherto invest on the same terms. In a syndicate there is usually a"lead" investor who negotiates the terms with the startup. That isso much more important than anything else that I worry Im misleadingyou by even talking about other things.

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63