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What do you give up when you take outside investors?

Berkonomics

To protect against such an event, almost every professional investor includes a clause in the investment documents which allow the investor to “put” the stock back to the company after five years, requiring the company to pay back the investment plus dividends accrued during the term of the investment.

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What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking

Steve Blank

VC’s raise money from their investors (limited partners like pension funds) and then spread their risk by investing in a number of startups (called a portfolio). BTW, Angel investors do not have limited partners, and often invest for reasons other than just for financial gain (e.g., The Deal With the Devil.

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Who Should be on Your Startup Board?

Both Sides of the Table

Why you should set up a board at the seed round of funding I know these days with SAFE documents and rolling convertible notes many founders prefer not to set up a board early on. The Limited Partners (LPs) who back funds don’t expect their dollars to be passive. I actually think having a formal board can really help you.

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Now Any Accredited Investor Can Invest in Texas Startups with Capital Factory and AngelList

Austin Startup

Capital Factory has partnered with AngelList Rolling Funds to better meet the needs of today’s investors. The Capital Factory Texas Fund is backed by many of the most successful CEOs and technology investors in Texas and across the U.S.,

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Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

Note that this is a debt instrument, whereas the two documents below are equity instruments. Founders First Capital Partners’ non-binding Revenue Loan Term Sheet and Payment Calculation Explanation. . Take SparkToro, for example, which raised an unusual round of financing and open-sourced all their documents.

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An Investor’s Personal Social Media Tech Stack: In the future, everyone will be famous for 15 followers

David Teten

They’re taking a $1m check from me, or giving $5m to me as a limited partner. Other coinvestors: Limited partners, other VCs who are coinvestors, private equity funds which are potential growth-stage investors, etc. 3) Documenting best practices. But for B2B sales, meeting people in person is often mandatory.

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Why You Don’t Want to Give Financial Information to All of Your Investors

Both Sides of the Table

Generally speaking in venture capital financings the legal documents will specify that only “major investors” (a threshold set in the agreement – which can be $500,000 investor or more). How party rounds can burn you if it takes time to find your groove. There is a reason for this.

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