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Startups Need To Be Skeptical Of Bank Funding Offers

Startup Professionals Musings

A few, like Silicon Valley Bank (SVB), despite recent failures, actually do provide management services to startups, invest in startups, or provide early-stage venture capital, but that is not called an investment service and is part of a function called Emerging Technologies, or sometimes Private Equity.

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Should An Entrepreneur Seek Out An Investment Bank?

Startup Professionals Musings

A few, like Silicon Valley Bank (SVB), actually do provide management services to startups, invest in startups, or provide early-stage venture capital, but that is not called an investment service and is part of a function called Emerging Technologies, or sometimes Private Equity.

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What Is Venture Debt and How Should Startups Use It?

View from Seed

Below, we talk to Glen Mello , Managing Director of Silicon Valley Bank’s accelerator team in Boston. Glen Mello: Venture debt is a good complement to equity. It’s generally got a lower cost compared to equity capital and can help support growth. In terms of negotiation, there are always hot buttons.

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The Legal Side of Entrepreneurship

YoungUpstarts

Investors typically negotiate from a term sheet, which if not handled properly can create problems that can hurt or kill the startup’s chances when they do their Series A round of funding. They also need to decide whether to structure terms as an equity deal or a convertible security deal. Convertible Securities.

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Master of Customer Acquisition, Matt Coffin, On Startups …

Both Sides of the Table

He tells the story of how he was out of cash, stressed out, nobody in LA or Silicon Valley would give him money, he had finally found an investor in Minneapolis but his venture bank was going to shut him down for breaking a “covenant&# in their agreement by not having enough cash in the bank. . He told them it was now or never.

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Equity for Consultants – Keep it Simple!

www.mattbartus.com

Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. Equity for Consultants – Keep it Simple! posted Feb 3 in Equity , People issues. for every hour works, consultant accrues [hourly wage]in debt that will convert to equity in the next round).

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How to Work with Lawyers at a Startup

Both Sides of the Table

You never got around to agreeing exact equity splits but you had many conversations about it. Right sized : I tried to work with one of the best known firms in Silicon Valley. He’s totally tapped into the startup communities in Silicon Valley and a bit in LA. I know Mike Lincoln in Washington DC does.