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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. Can I really manage a 7-person board plus 2 board observers?

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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. That’s just the facts.

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

David Teten

John Borchers, Co-founder and Managing Partner of Decathlon Capital, claims to be the largest revenue-based financing investor in the US. I asked Brian Parks, Managing Partner, Bigfoot Capital, about the impact of RBI on traditional VC. You can see their Folder with All the Documents , including the: LLC Agreement.

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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. Google My Business , which helps me manage my Google presence. . 3) Documenting best practices.

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15 Steps to Fundraising for Your New Venture Capital or Private Equity Fund

David Teten

Build the firm as much as possible before you solicit limited partners. . Your materials should ideally meet the expectations of the Institutional Limited Partners Association, even if you’re not targeting institutions. Note that limited partners view formatting as a proxy for professionalism.

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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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