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Keep Term Sheets Simple for Quicker Cash to Spend

Gust

Remember a term sheet agreement is not a deal until the check clears. Due diligence and paperwork take time, and can change everything.

A Quick Hack for Speeding up Term Sheet and other Negotiations

Both Sides of the Table

He marks up the term sheet. Seems like the term sheet will be done in a day or so. Nor did their lawyer. Rinse. Repeat.

Driving to Conviction (Not to a Term Sheet)

Genuine VC

all talk about the best way for entrepreneurs to optimize their fundraising process with the end-goal of receiving a term sheet. It’s often spoken as if the second that magical term sheet document is in hand, the process is over. Agreement of key terms between entrepreneur + VC firm. How can this situation happen?

Keep Term Sheets Simple for Quicker Cash to Spend

Startup Professionals Musings

Remember a term sheet agreement is not a deal until the check clears. entrepreneurs startups angel investors term sheets business

Venture Deals: Chapter 3: Overview of the Term Sheet

Ask The VC

Chapter 3 of Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist is a transitional one that sets up the next few chapters on Term Sheets. At the end of 2005, we participated in a financing that was much more difficult than it needed to be. The specific language that we refer to is from actual term sheets.

Searching For VC Term Sheets Prior To 1990

Feld Thoughts

On the heels of all the noise around Groupon’s $ 100m financing at a $7.5b (billion) post valuation, I thought I’d put out a call for “old VC term sheets – prior to 1990.&#. My partner Jason Mendelson and I are working on a book titled Venture Financings: How To Look Smarter Than Your Lawyer and VC.

Anatomy of a Term Sheet: Index

VC Ready Blog

1.     Overview. 2.     Nature of a Term Sheet and Summary of Offering Terms. 3.     Dividends. 4.     Liquidation Preference. 5.     Voting Rights and Protective Provisions. 6.     Conversion and Anti-dilution. 7.     Pay-to-Play. 8.     Redemption Rights. 9.     Stock Purchase Agreement. 10.     Registration Rights.

Venture Capital Term Sheets: Conversion Rights

Scott Edward Walker

Introduction This post originally appeared as part of the “ Ask the Attorney ” column I am writing for VentureBeat ; it is another installment of my ongoing series regarding venture capital term sheets.  Conversion Rights What Are Conversion Rights? There are two types of conversion rights: optional and mandatory. Many thanks, Scott.

Anatomy of a Term Sheet: Conversion and Anti-dilution

VC Ready Blog

NOTE: This is the sixth post in our series about standard terms in early stage equity financings. These posts refer to the model Series A Term Sheet put out by the National Venture Capital Association (NVCA) and available for download here. * * * * * * * * * *. Optional Conversion and Mandatory Conversion.

Convertible Note Term Sheets

The Startup Lawyer

Just like the preferred equity financing process, the convertible debt financing process can start with a term sheet, rather than a full set of financing documents. It also makes any potential back-and-forth on terms easier to manage. Term : When is the maturity date of the convertible notes?

Both sides must be fair in a term sheet negotiation.

Berkonomics

good example was during the negotiation of a term sheet. By Basil Peters. Email readers, continue here.]  Raising money

Venture Deals: Chapter 6: Other Terms of the Term Sheet

Ask The VC

In this chapter we cover the non-economic and non-control terms in the term sheet. Up to this point we’ve been exploring terms that matter a lot and fall under the category of economics or control. Some matter, some don’t, and context matters a lot. If not, what are you waiting for? Venture Deals book venture deal

Ten Things You Should Know About Term Sheets for Equity Financing

Fresh Inc.: The Staff Blog

The following tips should prove helpful in navigating the equity financing arena, particularly in your first angel or venture capital round

Anatomy of a Term Sheet: Management Rights and Investor Director Approval

VC Ready Blog

NOTE: This is the eleventh post in our series about standard terms in early stage equity financings. These posts refer to the model Series A Term Sheet put out by the National Venture Capital Association (NVCA) and available for download here. * * * * * * * * * *. Management and Information Rights.

Anatomy of a Term Sheet: Stock Purchase Agreement

VC Ready Blog

NOTE: This is the ninth post in our series about standard terms in early stage equity financings. These posts refer to the model Series A Term Sheet put out by the National Venture Capital Association (NVCA) and available for download here. * * * * * * * * * *. Representations and Warranties. Conditions to Closing.

Anatomy of a Term Sheet: Liquidation Preference

VC Ready Blog

NOTE: This is the fourth post in our series about standard terms in early stage equity financings. These posts refer to the model Series A Term Sheet put out by the National Venture Capital Association (NVCA) and available for download here. * * * * * * * * * *.

Anatomy of a Term Sheet: Dividends

VC Ready Blog

NOTE: This is the third post in our series about standard terms in early stage equity financings. These posts refer to the model Series A Term Sheet put out by the National Venture Capital Association (NVCA) and available for download here. * * * * * * * * * *. Dividends.

Angel Term Sheet Evolution

Angel Blog

This video is from a Bellingham Angel Group Education Breakfast on Angel investor term sheets. Is valuation a science or a black art.

Anatomy of a Term Sheet: Right to Maintain Proportionate Ownership (a/k/a Preemptive Rights)

VC Ready Blog

NOTE: This is the twelfth post in our series about standard terms in early stage equity financings. These posts refer to the model Series A Term Sheet put out by the National Venture Capital Association (NVCA) and available for download here. * * * * * * * * * *.

Convertible Debt Series

Ask The VC

As part of the experience of releasing the book, we’ve gotten the chance to interact with many new people interested in the venture capital and angel financing process. The most often requested additional topic that we don’t cover extensively in our book is the use convertible debt in early stage – especially seed stage – financings.

Kryptonite Angel Round Terms

The Startup Lawyer

Here’s a list of the top 5 deal terms that cause harm to startups at the seed financing stage and therefore should be avoided: 5. This is something you might see in a late stage private equity financing with a company that has a history of generating revenue. Startup Issues angel investor seed financing Term Sheet

Announce Your Financing In Conjunction With Your Form D Filing

Feld Thoughts

I’ve always had mixed feelings about the importance of a company announcing a financing in the absence of any other activity. When you do a financing, you file something called a Form D with the SEC. For some reason, some companies want to keep their financings quiet. Financing form d pr sec” Ok, but so what?

in search of.the ideal term sheet

Seed Stage Capital

term sheet like this can be closed with $10k - $20k in legal fees. You can download it on docstoc here. VCs often ask for this.

The Proliferation of Standardized Seed Financing Documents

Feld Thoughts

Combinator Series AA Equity Financing Documents (by WSGR). Founders Institute Plain Preferred Term Sheet (by WSGR). Series Seed Financing Documents (by Fenwick & West). wrote about this in my post The Challenge of The Ideal First Round Term Sheet. TechStars Model Seed Funding Documents (by Cooley).

Anatomy of a Term Sheet: Right of First Refusal, Right of Co-Sale and Lock-Up

VC Ready Blog

NOTE: This is the fourteenth post in our series about standard terms in early stage equity financings. These posts refer to the model Series A Term Sheet put out by the National Venture Capital Association (NVCA) and available for download here. * * * * * * * * * *. Right of First Refusal. Right of Co-Sale. Lock-Up.

Anatomy of a Term Sheet: Election of the Board of Directors

VC Ready Blog

NOTE: This is the fifteenth post in our series about standard terms in early stage equity financings. These posts refer to the model Series A Term Sheet put out by the National Venture Capital Association (NVCA) and available for download here. * * * * * * * * * *. Tags: Anatomy of a Term Sheet

A Primer on Angel Investment ‘Simple Term Sheets’

Startup Professionals Musings

Remember a term sheet agreement is not a deal until the check clears. Seat on the board. Define equity type. Outline multiple tranches.

Sizing Option Pools In Connection With Financings

A VC : Venture Capital and Technology

They'll put 15% into the term sheet and then let the entrepreneur negotiate them down from there and maybe if you are lucky you'll get them to 10%. Then we'll do the same thing at the time of the next financing. If the financing is $1mm, it's not going to be that many. Hopefully it will explain the issue.

Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

It should therefore come as no surprise that an asymmetry of information exists, mostly gleaned from experience, between founders and investors in a venture financing deal. For better or for worse, most entrepreneurs and angels are likely to encounter a convertible debt term sheet—if not many of them—sooner or later.

Getting Funded: Step 4, Due Diligence

Passionate Intensity

“Due Diligence” is a broadly defined term with explanations here:   WikiPedia , Webster’s , and elsewhere. YOU should….

Anatomy of a Term Sheet: Conversion and Anti-dilution

VC Ready Blog

NOTE: This is the sixth post in our series about standard terms in early stage equity financings. These posts refer to the model Series A Term Sheet put out by the National Venture Capital Association (NVCA) and available for download here. * * * * * * * * * *. Optional Conversion and Mandatory Conversion.

A "Rich-vs.-King" Approach to Term Sheet Negotiations

Altgate

Migrating…lots of broken stuff → A “Rich-vs.-King&# Bookmark the permalink. ← Why Don’t Universities Teach Sales?

Anatomy of a Term Sheet: Voting Rights and Protective Provisions

VC Ready Blog

NOTE: This is the fifth post in our series about standard terms in early stage equity financings. These posts refer to the model Series A Term Sheet put out by the National Venture Capital Association (NVCA) and available for download here. * * * * * * * * * *.

Anatomy of a Term Sheet: Pay-to-Play

VC Ready Blog

NOTE: This is the seventh post in our series about standard terms in early stage equity financings. These posts refer to the model Series A Term Sheet put out by the National Venture Capital Association (NVCA) and available for download here. * * * * * * * * * *.

Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

FFF investing is not a short-term play and mostly investors do not get a return on their investment immediately. Convertible Debt Financing.

How to Evaluate an Offer from a Startup Incubator

The Startup Lawyer

As equity in the company tends to be the currency of early stage startups, the startup should have a good foundation for assigning value in terms of equity. Like any issuance of stock or investment, one of the main things a startup should be concerned with is: Is this going to fuck up a future financing ? Do they know your space?

Pari Passu or F.U.little guy

Professor VC

always ask the question if other investors have different terms and almost always don''t invest on principal in these cases. Lucky us!!

Series Seed Financing Documents

www.seriesseed.com

SeriesSeed.com Series Seed Financing Documents Blog Home Documents Blog Archives Subscribe 09/02/2010 Version 2.0   That’s because there are not that many issues to negotiate in a simple equity financing. In sum, Series Seed creates a level playing field between capped debt and equity documents in terms of speed and cost. 

Ask the VC Bonus Material

Feld Thoughts

As a result, we created a Resources page on Ask the VC and decided to load it up with legal documents that are part of a venture capital financing. Included are our standard forms for the following: Series A Term Sheet. Venture Deals askthevc deal docs Term Sheet venture dealsInvestor Rights Agreement. ByLaws.

The "Vig" Working Its Way into VC Financings

Allen's Blog

This post in Techcrunch raises interesting issues around what seems to be a trend in VC financings for "lead" investors to get a better deal than "follower investors" in the same round.  the due diligence, negotiating the term sheet, determining the appropriate valuation, assigning a partner to sit on the board, etc.)