The Startup Toolkit

NOVEMBER 4, 2011

Vision for B2C, virality-driven community. Next, we check that we’re safe from any particularly onerous terms like participation preferred. In an early stage deal, you check the numbers to avoid getting exploited, but you make your decision based on the investors. Conveniently local. Looks good. The people.

Term Sheet 31

Term Sheet Dilution Participating Preferred B2C 31

The Startup Toolkit

NOVEMBER 4, 2011

Vision for B2C, virality-driven community. Next, we check that we’re safe from any particularly onerous terms like participation preferred. In an early stage deal, you check the numbers to avoid getting exploited, but you make your decision based on the investors. Conveniently local. Looks good. The people.

Term Sheet 20

Term Sheet Dilution Participating Preferred B2C 20

Both Sides of the Table

SEPTEMBER 2, 2009

A friend of mine is a serial entrepreneur and is running a high-profile, early stage company in NorCal. But more spend = more viral opps = more revenue down the road. >50% of our revenue in now viral. I took money with a 3x participating preferred liquidation preference with 8% compounded interest annually.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329