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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.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.

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Going Concern Rules And Your Company

YoungUpstarts

When investors believe in the founders, products, or ideas they will provide companies with funding. However, as a condition of financing they may require annual audited financial statements. For many startups this results in a need to raise additional financing through debt or equity arrangements.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Flexible VC 102: Variations.

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Looking for investors? Here’s how to value your startup

The Next Web

This is typically in conjunction with an upcoming financing or pending takeover offer. A competitive commodity business, or a “me too” story , will be less demanded, and hence, will require a lower valuation to close your financing. Freshman are a piece of paper to beta site (bootstrap financed—raise $50K to $500K).

Valuation 167
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An Inside Scoop on the Funding Environment and What it Might Mean for You

Both Sides of the Table

Investors sat with the founder & CEO, Jason Spievak, and asked him what he wanted to do about the future. Six firms had expressed strong interest, two had strong champions already trying to test price and round size and one had made it clear they were planning to submit a term sheet the following week.

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Top 10 questions on pitching an idea to investors

Up and Running

Most sophisticated investors will already have terms they typically prefer in a deal, but they should be open to discussion. I recommend speaking with the founders of other companies the investors have invested in to see what kinds of perks they provided. Here is a Quoro discussion on this topic: [link]. Did we miss your question?

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Channel your Inner VC to Understand Startup Valuations

www.currentlyobsessed.com

I have to admit, the light bulb didn’t go off for me until I was negotiating term sheets. Snapvine was my first experience being in the driver’s seat of the fund-raising process, and in the 3 years prior to our acquisition we raised over $10mm in venture capital. I know this sounds crazy, but it’s not.