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The End of Syndication

View from Seed

For early stage VC ‘s, Syndication is the process of sharing investments with other potential co-investors. The classic scenario is when a VC has a signed term sheet to lead a round, but has left room open for another meaningful investor. When I started in venture, syndicating deals was fairly common.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate. Emily Campbell, Esq.

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Friday Funism – Fear vs Greed

View from Seed

One of the most relevant scenarios that this fear vs. greed lens applies towards is insider-led financings. That story is built brick by brick through subtle cues of amounts of insider participation, who issues a term sheet, structure of the financing, etc. Of course, true motivations cannot be entirely divined.

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The investment that didn’t happen

K9 Ventures

In August/September 2009, the founders and I agreed to work together to raise a round of financing for the company. I helped introduce the company to various angels and lead the effort to form a syndicate for their fund-raising round. We pulled together about $600K of commitments and interest, for a $500K-target financing round.

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When should you go for equity financing?

Berkonomics

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. Some can supply more when syndicating with other such groups. You will be given a “term sheet” during the process, calling out the terms proposed for the investment. Friends and family investors.

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ProfessorVC: Negotiating an Angel Deal in your PJ's

Professor VC

One comment made by Jason was that angels tend to be less sensitive than VCs on valuation and can potentially make it difficult to get a venture financing done at acceptable valuation. A related topic is the standardization of terms. A good comparison of the various "standard" term sheets can be found at Start-up Company Lawyer.

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Transparent Funding Announcements

Feld Thoughts

No understanding of the human dynamics behind the financing. No underlying metrics that drive the financing. Recently, the gang at SalesLoft told the detailed story of their $10m financing. None of them covered the financing in any way. financing of Mattermark. There’s no real story there.

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