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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. 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.

Finance 286
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Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

Does the traditional VC financing model make sense for all companies? 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. . 2018 also had the fewest number of angel-led financing rounds since before 2010. Absolutely not.

Revenue 60
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When should you go for equity financing?

Berkonomics

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. If you have a virtual company with your employees working from home locations, as many startups do, it should be the location of the founder. Friends and family investors. How many angel groups are there?

Equity 62
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Understanding the Herd Mentality of VCs and How not to Let it Psyche You Out

Both Sides of the Table

And for a founder it’s maddening because you feel like until you find that anchor you’re spinning plates. Many entrepreneurs let the early rejections get to them and it’s normal because when you hear “no” you think “what’s wrong with me!?” When you finally get a term sheet you get three.

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

Tim Keane

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.

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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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Quick Thoughts on Term Sheets and LOIs

Rob Go

This is something that isn’t that obvious to founders, so I thought I’d write a quick post. 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. In the M&A process, an LOI feels an awful lot like a term sheet.