Startup Professionals Musings

APRIL 18, 2021

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process. Some startups do nothing to prepare for the due diligence process, assuming the people and business plan documents will speak for themselves.

Technical Review 380

Technical Review Due Diligence Term Sheet Angel Investor 380

Startup Professionals Musings

JUNE 29, 2012

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process. Some startups do nothing to prepare for the due diligence process, assuming the people and business plan documents will speak for themselves.

Technical Review 245

Technical Review Due Diligence Term Sheet Startup 245

Both Sides of the Table

AUGUST 28, 2012

I have seen some entrepreneurs go into first meetings willing to share almost anything about their company. I’ve seen this back fire on entrepreneurs who say things like, “Well, we’re not talking financials with investors yet.”. The only real benefit of their having this information is in preparation for a term sheet.

Technical Review 316

Technical Review Due Diligence Term Sheet Cap Table 316

Startup Professionals Musings

FEBRUARY 4, 2012

After you have successfully attracted angels or venture capital with your business case, your million dollar product idea, and you have a signed term sheet, there is still one more hurdle to overcome before investors write the check. This is the dreaded “due diligence” process. Product or service readiness. Waste no time.

Technical Review 237

Technical Review Due Diligence Intellectual Property Private Equity 237

Startup Professionals Musings

OCTOBER 22, 2010

After you have successfully attracted angels or venture capital with your business case, your million dollar product idea, and you have a signed term sheet, there is still one more hurdle to overcome before investors write the check. This is the dreaded “due diligence” process. Product or service readiness. Waste no time.

Technical Review 225

Technical Review Due Diligence Intellectual Property Private Equity 225

Startup Professionals Musings

DECEMBER 28, 2010

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process. Some startups do nothing to prepare for the due diligence process, assuming the people and business plan documents will speak for themselves.

Technical Review 229

Technical Review Due Diligence Term Sheet Angel Investor 229

Gust

NOVEMBER 14, 2011

After you have successfully attracted angels or venture capital with your business case, your million dollar product idea, and you have a signed term sheet, there is still one more hurdle to overcome before investors write the check. This is the dreaded “due diligence” process. Product or service readiness. Waste no time.

Technical Review 152

Technical Review Due Diligence Intellectual Property Private Equity 152

Startup Professionals Musings

SEPTEMBER 10, 2014

Struggling entrepreneurs are often so happy to get a funding offer that they neglect the recommended reverse due diligence on the investors. Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. It’s no fun for either side.

Technical Review 257

Technical Review Due Diligence Term Sheet Offshore 257

View from Seed

JANUARY 30, 2020

One of the often neglected parts of fundraising is the process of doing due diligence on potential investors. Partnering with an investor and/or board member is very long term commitment, and I’m always surprised by how little diligence founders do prior to signing up for what could be a 10+ year collaboration.

Due Diligence 195

Due Diligence Partner Term Sheet Finance 195

Startup Professionals Musings

JANUARY 20, 2019

Image via Flickr by ivanpw Some aspiring entrepreneurs are so desperate for funding, or naïve, that they ignore the obvious signs of scams and rip-offs on the Internet, praying for a windfall. Deposit required to hold your terms. Don’t count on ever passing due diligence, or even getting that deposit back.

Technical Review 228

Technical Review Non-disclosure Agreement Due Diligence Term Sheet 228

Startup Professionals Musings

MARCH 27, 2016

Struggling entrepreneurs are often so happy to get a funding offer that they neglect the recommended reverse due diligence on the investors. Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. It’s no fun for either side.

Technical Review 120

Technical Review Due Diligence Term Sheet Offshore 120

NZ Entrepreneur

AUGUST 4, 2021

Again, use this as an opportunity to pique their interest – and ultimately, land follow-up meetings or enter due diligence. Due diligence, information memorandums & data rooms. Lead investors and term sheets. Now that you’ve got investors undergoing due diligence, you must secure a lead investor.

Technical Review 61

Technical Review Software Review Founder Due Diligence 61

Startup Professionals Musings

JANUARY 18, 2017

Some aspiring entrepreneurs are so desperate for funding, or naïve, that they ignore the obvious signs of scams and rip-offs on the Internet, praying for a windfall. Deposit required to hold your terms. Don’t count on ever passing due diligence, or even getting that deposit back. Loan offer in lieu of investment.

Technical Review 120

Technical Review Non-disclosure Agreement Due Diligence Entrepreneur 120

Startup Professionals Musings

SEPTEMBER 26, 2013

Some aspiring entrepreneurs are so desperate for funding, or naïve, that they ignore the obvious signs of scams and rip-offs on the Internet, praying for a windfall. Deposit required to hold your terms. Don’t count on ever passing due diligence, or even getting that deposit back. entrepreneur funding investors business'

Technical Review 202

Technical Review Non-disclosure Agreement Due Diligence Entrepreneur 202

Rob Go

DECEMBER 14, 2016

When a VC invests in a startup, the two parties usually sign a term sheet that lays out the major terms of the investment round. This is usually followed by several weeks or longer of legal due diligence. 90%+ of term sheets result in a closed deal that is more or less equivalent to what was discussed.

Term Sheet 28

Term Sheet Technical Review Due Diligence Private Equity 28

YoungUpstarts

FEBRUARY 6, 2017

The fundraising stage is vital for any entrepreneur, but you can’t wing it through your meetings and expect to be taken seriously. As an entrepreneur, your goal when raising financing is to get several term sheets — the documents describing the terms and conditions of financing. Find the right VC.

Venture Capital 100

Venture Capital Term Sheet Technical Review Due Diligence 100

Both Sides of the Table

MAY 9, 2018

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. The investor has money and the entrepreneur is selling ownership in his or her company. What do I do now?

Software Review 381

Software Review Churn Rate Due Diligence New York 381

Both Sides of the Table

FEBRUARY 14, 2010

Back in November I agreed with Nivi over at VentureHacks to do a series on the ten most important attributes of a successful entrepreneur. Unfortunately, I don’t believe it is perfectly correlated with what it takes to be a successful entrepreneur. Tags: Entrepreneur Advice Start-up Advice Startup Advice.

Technical Review 284

Technical Review Due Diligence Entrepreneur Early Stage 284

Startup Professionals Musings

JANUARY 27, 2012

Remember a term sheet agreement is not a deal until the check clears. Entrepreneurs sometimes assume an initial agreement with an Angel is a commitment, so they start spending before any money is received. But due diligence and paperwork take time, and can change everything.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 223

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations. 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. and walked through each proposed term and why it is or isn’t important.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

SEPTEMBER 14, 2010

Remember a term sheet agreement is not a deal until the check clears. Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. But due diligence and paperwork take time, and can change everything. Marty Zwilling.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. It is essential to understand the funding structure stated in your term sheet and the advantages and disadvantages it may have for your business. Pre-Requisites of Funding. Process-of-Funding.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Both Sides of the Table

SEPTEMBER 25, 2010

Not that they’re “such a bad idea&# but more that there are inherent problems for entrepreneurs in the process of raising angel money that need to be addressed. This leads to the problem of “herding cats&# for entrepreneurs raising angel money. Here’s where I feel common ground : 1. Violent agreement.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Gust

OCTOBER 17, 2011

Remember a term sheet agreement is not a deal until the check clears. Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. Due diligence and paperwork take time, and can change everything.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

Both Sides of the Table

OCTOBER 19, 2014

We are often asked how companies get funded, why VCs make the decisions we make and what we’re looking for in entrepreneurs. At Upfront we’re totally fine funding entrepreneurs who have done multiple businesses in the past – in fact we like it. But I’m guessing the narrative is similar elsewhere.

Technical Review 373

Technical Review North America Los Angeles Cofounder 373

Genuine VC

OCTOBER 2, 2012

After completing a long process identifying the right venture firms to pitch, running an exhaustive fundraising process, finding a mutual fit, and successfully negotiating terms… at last, the term sheet is signed. The two- to six- week time between the signing of the term sheet and closing is “venture limbo.”

Term Sheet 162

Term Sheet Founder Vesting Due Diligence Syndicate 162

David Teten

AUGUST 19, 2019

Though RBI will displace some traditional equity VC, its much bigger impact will be to expand the pool of capital available for early-stage entrepreneurs. . The traditional NVCA term sheet works well for founders who are comfortable substituting VC capital for revenues, running typically at a loss for many years.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Both Sides of the Table

APRIL 13, 2011

There was a lot of consumer internet activity again…resurgence of things, but it was still mysterious, venture capital was still kind of closed, 1st time entrepreneurs had a lot of questions that were unanswered, and there was still some sort of hand waiving around all the financing stuff and so we took it on….”. Is that when it became big?

Technical Review 288

Technical Review Venture Capital Silicon Valley Software Review 288

Scott Edward Walker

SEPTEMBER 14, 2011

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. The Investors’ Right to Walk VC Term Sheets Are Non-Binding. VC Term Sheets Are Conditional. What does this mean?

Term Sheet 76

Term Sheet Due Diligence Liquidation Preference Redemption 76

Agile VC

MAY 26, 2011

This also appears as a guest post at Fortune’s Term Sheet. I also joke with Reid Hoffman that this was back in the days before he was “Reid” Reid’s an incredible entrepreneur, startup investor, and human being. How To Think About The Future. AGILEVC My idle thoughts on tech startups. May 26, 2011.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Startup Professionals Musings

APRIL 22, 2012

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. The entrepreneur’s tendency to be in a huge hurry to obtain the funding can end up being disastrous, and play into the hands of these less scrupulous investors.

Angel Investor 281

Angel Investor Term Sheet Entrepreneur Due Diligence 281

The Next Web

APRIL 6, 2013

One thing I repeatedly see are on the one hand, talented entrepreneurs frustrated by the failed attempts of securing funding for their startups and on the other hand, investors often shaking their heads that entrepreneurs haven’t fully explained their value proposition. Do Their Due Diligence. Entrepreneur Insider'

Term Sheet 126

Term Sheet Due Diligence Strategic Investors Valuation 126

Up and Running

MAY 11, 2016

500 CEO, an angel investor, and a serial entrepreneur. “The Startup Checklist” was written to give entrepreneurs the knowledge and resources needed to start a scalable, high-growth business. It’s for a particular type of entrepreneur, somebody who thinks they’re the next Mark Zuckerberg or Steve Jobs.

Technical Review 60

Technical Review Term Sheet Startup Due Diligence 60

Both Sides of the Table

MAY 13, 2018

If an investor isn’t engaging then they’re not suddenly going to get a term sheet. If we feel a mutual connection then my goal is to make your life easier by offering you a term sheet before you’re even raising and I’ll spend the time and effort trying to prove that it isn’t worth running a process.

Term Sheet 332

Term Sheet Due Diligence Campaign Sales 332

The Next Web

SEPTEMBER 13, 2013

Many Asian entrepreneurs tell me that they want to raise funds from Silicon Valley firms because they perceive the valuations to be higher. Asia’s entrepreneurs and investors have a much longer history of being scrappy and building massive businesses with very little upfront resources, because capital has always been so scarce.

Asia 132

Asia Silicon Valley India Term Sheet 132

David Teten

JANUARY 19, 2021

See Why Are Revenue-Based Investors Investing in Women & Diverse Entrepreneurs? Zack Mueller, Attorney, Ireland Stapleton Pryor & Pascoe, PC , points that almost “no one, from LPs to entrepreneurs to attorneys, has much experience with these instruments. Less established regulatory framework. . Emily Campbell, Esq.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

View from Seed

DECEMBER 6, 2018

Diligence validates your gut to invest or (hopefully quickly) kills an opportunity that sounded reasonable but you just didn’t like. I’ve come to believe a much less cynical view of investment due diligence, that, especially at the seed stage, it’s is best when followed the 80–20 rule.

Due Diligence 120

Due Diligence Term Sheet Seed Stage Partner 120