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

Tim Keane

  Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react. Now that I’m more often on the other side of the term-sheet, I’ve tried to present term-sheets to entrepreneurs accompanied by a philosophical explanation of what I’m proposing, and why.   First , dividends.

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Keep Term Sheets Simple for Quicker Cash to Spend

Startup Professionals Musings

It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. As the company grows and the second or third group of investors comes in, the terms of each subsequent financing grow in size, scope, and the number of lawyers’ fingerprints on them.

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A Primer on Angel Investment ‘Simple Term Sheets’

Startup Professionals Musings

It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. As the company grows and the second or third group of investors comes in, the terms of each subsequent financing grow in size, scope, and the number of lawyers’ fingerprints on them.

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Keep Term Sheets Simple for Quicker Cash to Spend

Gust

It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. As the company grows and the second or third group of investors comes in, the terms of each subsequent financing grow in size, scope, and the number of lawyers’ fingerprints on them.

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Cap Table Clean Up

ithacaVC

When raising money from investors (angels or VC), it is critical to have a presentable and clean cap table. The most common way to reallocate is to grant one of the founders a stock option with a “real” strike price based off the financing round price (typically a discount). after the financing closes).

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The Seeds Have Changed: An Epilogue to The New Venture Landscape

K9 Ventures

In that presentation, I said that Seed is not the first round of financing any more and that K9’s investments were mostly “pre-seed”. Together this means that Seed stage companies need to run longer and at a higher expense structure, meaning they need to raise a lot more capital.

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Series A Startup CEO Salary

The Startup Lawyer

A startup’s Series A financing shouldn’t be a large liquidity event or salary payday for the startup’s founders. Earlier this year, this issue presented itself when a client was the lead investor in a Series A round of about $2MM at a $4MM pre-money. Not all startup founders understand this tenet. Case Study.

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