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Remind Me Why I Love You? (Why “In Person” is Everything)

Both Sides of the Table

You race back to the office to tell everybody how well it went and you wait for the follow-up call to have a partners’ meeting or talk about term sheets or at least dip into due diligence. This is a very common scenario when entrepreneurs pitch VCs and frankly is a very common scenario when VCs try to raise money from LPs.

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Beware of Premature Merge Elation

Both Sides of the Table

There is a telltale sign of an inexperienced startup entrepreneur. I’m doing due diligence on a company of another entrepreneur in LA whose company was apparently doing very well. If they raise a bunch of capital little ole you isn’t going to be around to have your option pool topped up.

Merger 276
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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and. 6) Due diligence. 2) Market .

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react. Term-sheets and Valuations: Thinking about Negotiations.

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How Many Investors are Too Many?

Both Sides of the Table

And I always encourage entrepreneurs to do reference checking. When you consider that they’ll also want a 15-20% option pool in the company you’re talking about founders owning as little as 40% after just one round. So obviously before agreeing to work with this VC you better make sure you know them really well.

Dilution 314
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10 Steps to Success With Angel Investors

Business Plan Blog

The entrepreneur will need to be ready and able to respond to due diligence information requests. Conditions, such as: Satisfactory completion of due diligence and references. They should be highly regarded by the other group members and able to secure their confidence. Amount to be invested. Pre-money valuation.