Austin Startup

APRIL 1, 2017

out of state VCs Don’t rush a term sheet In assessing financing terms and interacting with their lead investors, most founders instinctively focus on two core things: economics and control. Do not take that selection lightly. Background Reading: How to avoid “captive” company counsel Local v.

Term Sheet 48

Term Sheet Institutional Investors Technical Review Lead Investor 48

Steve Blank

FEBRUARY 3, 2011

We were just about to have a board meeting in another week to talk about raising another round of financing to keep our struggling disaster afloat. Steve, we thought we’d tell you this before the board meeting, but both our firms are going to pass on leading your next round.” Filed under: Rocket Science Games , Venture Capital.

San Francisco 331

San Francisco Silicon Valley Limited Partner Venture Capital 331

reidhoffman.org

NOVEMBER 12, 2013

It has many stylistic errors — and a few substantive ones, too — that I would now change having learned more, but I realized that it still provides useful insights for entrepreneurs and startup participants outside of the Greylock network, particularly across three areas of interest: how entrepreneurs should approach the pitch process.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

Gust

OCTOBER 26, 2011

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. The Note Purchase Agreement and Convertible Promissory Note are essential documents for any convertible note financing.

Finance 79

Finance Term Sheet Covenant Accredited Investor 79

Genuine VC

JULY 10, 2012

There are essentially two distinct basic strategies for startup entrepreneurs to raise a seed round of capital: Subscription approach – An entrepreneur sets a structure (usually a convertible note) and recruits individual angel investors who subscribe to the round, all without a term-driving lead investor.

Syndicate 207

Syndicate Syndication Seed Stage Portfolio 207

Pascal's View

JULY 9, 2017

At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. There is nothing wrong with using a SAFE or a convertible note in a startup if you know its implications. Yes, and it’s a lot simpler than making your startup grow into a successful company.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

The Startup Lawyer

JUNE 9, 2010

A startup’s Series A financing shouldn’t be a large liquidity event or salary payday for the startup’s founders. While a startup typically receives millions of dollars in a Series A, if too much of that $$$ flows guaranteed to the founders, various incentives get out of whack. Case Study.

Salary 99

Salary Term Sheet Liquidation Preference Liquidity Event 99

This is going to be BIG.

AUGUST 2, 2010

First off all, not every company is right for equity financing—and many other companies would be better off starting without it. I can’t tell you how many companies I’ve run into where the inability to get financing, or the lack of interest in it, led them to building better companies. This is a good thing.

Startup 101

Startup Venture Capital Incubator Programming 101

Scott Edward Walker

JUNE 9, 2019

Over the past few weeks, two of my clients have received financing term sheets in which the investors requested super pro rata rights. Accordingly, I thought it would be helpful for founders to discuss these rights and to point out the problems they create for startups. Introduction. Pro Rata Rights.

Preferred Stock 56

Preferred Stock Term Sheet Dilution Stock 56

Gust

SEPTEMBER 13, 2011

Today’s unveiling of Gust , the global infrastructure for early stage entrepreneurial financing, is a milestone that has been seven years in the making. Instead it was the proverbial ‘chicken and egg’ question that bedevils all two-sided market place ventures.

Angel Investor 79

Angel Investor Silicon Valley Venture Capital Finance 79

SoCal CTO

SEPTEMBER 8, 2010

August was a slow month in terms of traffic and I was away for a lot of the month, but there were some really great posts at the intersection of startups, technology, product and being a Startup CTO. He blogs to 10,000 web entrepreneurs at Software by Rob and co-hosts the podcast Startups for the Rest of Us.

Startup 191

Startup CTO Hire Cofounder Venture Capital 191

Reid Hoffman

JANUARY 26, 2021

Last week, we explored the topic of startup boards of directors. The primary goal of this conversation was to explain how and why a great startup board can be a powerful tool to help the CEO make the company successful. One of the things a financing round brings is an opportunity to strengthen the startup’s overall network.

Startup 36

Startup Equity Early Stage Green 36

The Equity Kicker

DECEMBER 3, 2012

Chris Dixon wrote an interesting post yesterday which described two different ways of thinking about startup opportunities – the finance lens and the product lens. whilst investors typically look at opportunities from an investment perspective, asking the question ‘is there an opportunity to make a lot of money from this investment?’.

Finance 116

Finance Valuation Lead Investor Startup 116

Both Sides of the Table

MAY 13, 2018

If you truly believe that you, your company and your products are exceptional and your company will be valuable then you’re actually doing them a FAVOR by helping them invest in your startup. For simplicity I’ll assume you’ve raised some money from angels or seed investors and you’re either raising an A round or a B round of venture capital.

Term Sheet 332

Term Sheet Due Diligence Campaign Sales 332

Feld Thoughts

AUGUST 2, 2010

They are: Fred Wilson: Lead Investors, Dipshit Companies, and Funding Every Entrepreneur. Dave McClure: MoneyBall for Startups: Invest BEFORE Product/Market Fit, Double-Down AFTER. But before Foundry Group, my partners and I were involved in many seed investments, both at Mobius Venture Capital.

Angel Investor 152

Angel Investor Cofounder Syndicate Syndication 152

Both Sides of the Table

MARCH 6, 2011

At first I was cynical about his ability to have 500 startups (or some fraction of that which is still larger than any VC has). He stresses the importance of his initial legwork getting his “champions” on board before going to AngelList and feels this is a crucial first step for any startup. Is this a potential issue with AngelList?

Valuation 292

Valuation Deal Flow Lead Investor Cofounder 292

Austin Startup

AUGUST 16, 2010

The company has been making steady progress, culminating in a huge round of financing. The company announced it is raising $48 million from a unique syndicate of investors comprising industry leading venture capital firms and semiconductor innovators. Power consumption matters more than ever.

Syndicate 54

Syndicate Syndication Venture Capital Texas 54

Both Sides of the Table

AUGUST 1, 2010

It’s just that he’s a “super seed&# investor in a firm, Founder Collective , that I really respect (and with whom I’ve done two deals and hope to do a third) and I’m a partner in a venture capital firm, GRP Partners. In these cases we proactively offer to lead their next round of financing.

Post-Money Valuation 298

Post-Money Valuation Term Sheet Warrant Partner 298