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. . John Borchers, Co-founder and Managing Partner of Decathlon Capital, claims to be the largest revenue-based financing investor in the US. So what is Revenue Based Investing?

Revenue 60

Revenue Term Sheet Founder Technical Review 60

YoungUpstarts

JUNE 26, 2020

The real issue here is that if an entrepreneur comes in to a pitch and goes on and on about how they’re going to build a billion dollar company in just a few years, most investors eyes tend to glaze over. Like Jerry Yang who started Yahoo, as investors we are looking for entrepreneurs who are obsessed with a new technology.

Finance 205

Finance Silicon Valley Valuation Startup 205

Agile VC

APRIL 17, 2011

liquidation preference, 6% accumulated dividend (1). Series D Preferred. Led by Oak Investment Partners with participation by General Catalyst, Sequoia, & Accel and others. liquidation preference, 6% accumulated dividend (1). Im a former Silicon Valley entrepreneur turned East Coast VC. as of 12/31/09).

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Startup Professionals Musings

MAY 18, 2015

When an entrepreneur first incorporates his or her business, he or she may find him or herself the proud owner of 10 million shares of common stock, commonly called founder’s shares. Make sure the government waits for a stock sale to collect taxes. Retain the right to reclaim stock from anyone leaving the startup.

Stock 120

Stock Vesting Common Stock Founder Vesting 120

Scott Edward Walker

SEPTEMBER 21, 2011

I’ve been helping entrepreneurs raise capital as a securities lawyer for 17+ years, and there are certain fundamental mistakes that I’ve seen entrepreneurs repeatedly make. Accordingly, I thought it would be helpful to share three basic tips for entrepreneurs in connection with raising capital. This is how the game is played.

Preferred Stock 45

Preferred Stock Angel Investor Entrepreneur Common Stock 45

Startup Professionals Musings

MARCH 7, 2015

One of the big questions that every entrepreneur struggles with is how much funding they should request from investors in the first round. Most professional investors will expect preferred stock, a board seat, rights to later rounds and perhaps anti-dilution protection. entrepreneur funding request investors startup stage'

Preferred Stock 120

Preferred Stock Exit Strategy Equity Angel Investor 120

Startup Professionals Musings

MARCH 11, 2013

One of the first questions that I get from many entrepreneurs is “How should I set up my company to minimize my setup costs, tax liabilities, and risk of lawsuits?” Many entrepreneurs don’t realize that the tax entity election doesn’t have to match the legal entity. I’ll offer you a few simple rules of thumb.

LLC 234

LLC Nevada Delaware Limited Liability Company 234

K9 Ventures

MAY 14, 2011

This is probably the very first group that an entrepreneur who is starting out may approach for some funding for his or her idea. They are still individual investors, they invest on a full-time basis as professionals, but they have funds with Limited Partners. Most angels will usually invest under $50K per investment.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

Both Sides of the Table

MARCH 21, 2010

As startup entrepreneurs we all want to work with them because having their name as reference clients makes it so much easier for marketing, PR, selling to other customers, fund raising and even recruiting. Let’s say you give a warrant to a channel partner to sell your product. Large companies can be strange sometimes.

Warrant 298

Warrant Dilution Startup Stock Options 298

Up and Running

DECEMBER 1, 2015

If you’re giving a large percentage of your company to someone (and yes, two percent is large), you’re entering into a contract that’s really a whole lot like marriage in that it creates a long-term relationship between you and the employee or partner. Make sure you understand all of your options before making any decisions.

Equity 60

Equity Employee Stock Options Vesting 60

Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). My general opinion is that anything that makes the financing process faster and easier or otherwise educates entrepreneurs is a good thing. (A “ .

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Both Sides of the Table

APRIL 14, 2010

It’s meant to be a bit provocative but the reality is that I give this advice to entrepreneurs all the the time and I usually leave the “e&# off of the end. I normally offer this advice in the capacity of really wanting to help entrepreneurs so please bear with me. Take liquidation preferences head on.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Pre-Money Valuation 289

www.quora.com

JANUARY 16, 2011

I did a short video at BothSidesoftheTable th at talks about the key terms in the term sheet you need to know about AND how VCs calculate valuation differently than entrepreneurs and what to look out for. Ivan Gaviria , Partner at Gunderson Dettmer [link] 1 vote by Anon User Here is the Gunderson term sheet for a traditional Series A.

Term Sheet 41

Term Sheet Startup Angel Investor Wiki 41

The Next Web

JUNE 17, 2015

For example, your tech development firm that is going to help you build your website and maintain it over time, is a much better equity partner than the firm that is going to design your logo in a quick one-time project. How Onerous Are the Terms? This typically comes down to the security, voting rights and valuation of the deal.

Equity 60

Equity Valuation Preferred Stock Common Stock 60

Both Sides of the Table

APRIL 6, 2020

We have been advising a lot of entrepreneurs so I thought I’d “open source” some of the advice I have been sharing. Along with my partner Stuart Lander, who runs operations at Upfront and is a former lawyer, we have scoured through, debated and helped scores of companies make this determination.

Programming 279

Programming Affiliate SBA Government 279

Startup Company Lawyer

APRIL 22, 2009

Always looking for ways to better serve the entrepreneurial community, Wilson Sonsini Goodrich & Rosati is pleased to announce the release of the WSGR Term Sheet Generator , a publicly available online tool that allows entrepreneurs and investors to generate an initial draft of a term sheet for a preferred stock financing.

Term Sheet 39

Term Sheet Finance Preferred Stock Kentucky 39

Professor VC

JANUARY 17, 2008

I think the title of this post is a TV show, but fitting as there has been much debate in the venture community as to the whether angel investors are good or bad for entrepreneurs and VCs. One group charges entrepreneurs "an administrative fee" to present to the group. Touched by an Angel.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

thestartuplawyer.com

FEBRUARY 24, 2010

Entrepreneurs often believe their startup company faces legal threats from only external sources. Even so, I believe the negative experience can end up producing a better entrepreneur if he or she applies lessons learned to current and future startups. He obviously never launched a startup and got shafted by a co-founder.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

Up and Running

MAY 23, 2016

To give you a better idea of what entrepreneurs in this industry are thinking about during each phase of the startup process, I interviewed SaaS entrepreneurs from all over the world, including our own COO Noah Parsons. List key partners and resources you will need, and then list your core team as well as their roles.

Software Review 74

Software Review Software Delaware Forecast 74

www.mattbartus.com

DECEMBER 9, 2012

an option to purchase shares in the future at a pre-determined price) to the investor to purchase preferred stock at the Series A price. My question is, can you elaborate on the benefits you see for the entrepreneur in trying to sell this to the investors? link] Roy Rodenstein. Hi Matt, Interesting technique and makes sense.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

abovethecrowd.com

FEBRUARY 24, 2015

Buying into such a notion is dangerous – dangerous for the entrepreneur and dangerous for the investor. As a simple example, many investors and entrepreneurs do not realize that coupon or discount use is a contra-revenue event when it comes to revenue recognition. You must subtract it from your top-line revenue.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

Board Effect

MAY 10, 2019

There’s the owner—maybe a partner or two—but unless employees are offered equity from the get-go, there’s typically not a whole lot of dilution. Most entrepreneurs enter into investor negotiations with an assessment of what their business is worth, the percentage of ownership they’re willing offer, and the amount they’re seeking in return.

Cap Table 40

Cap Table Liquidation Preference Dilution Liquidity Event 40

techcrunch.com

SEPTEMBER 2, 2012

As lawyer Scott Edward Walker wrote earlier this year, because of this “Convertible notes are ticking time bombs: if the maturity date is reached, and there hasn’t been a Series A round (triggering the automatic conversion of the notes into shares of preferred stock), there is the potential for disaster.” Website: fi.co.

Equity 87

Equity San Francisco Technical Review Angel Investor 87

www.vccafe.com

MARCH 11, 2013

A group of Seedcamp entrepreneurs started a startup tools wiki for that purpose, and we thought it would be well suited here. List of Angel/SuperAngel Investors for entrepreneurs. Mark Suster GRP Partners Advice. Philippe Botteri, Bessemer Venture Partners. Walker Law: Tips for Entrepreneurs. VC Experts.

Software Review 53

Software Review Technical Review Startup 53