Feld Thoughts

JULY 18, 2011

The book originated in 2005 when Jason and I wrote a long series of posts on this blog about a typical Venture Capital term sheet. We knew the term sheet series would only be a small part of the book and would have to be re-written, so we just got to work. Overview of the Term Sheet. How to Raise Money.

Term Sheet 162

Term Sheet Venture Capital Capitalization Table Finance 162

Feld Thoughts

JULY 27, 2011

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. As a step in the right direction, Jason and I decided to open source our Foundry Group form legal documents.

Term Sheet 136

Term Sheet Preferred Stock Merger Venture Capital 136

Feld Thoughts

OCTOBER 4, 2015

I’ve also seen several financings fail to close recently. Two of them were late stage financings that were pulled by the investor at the last second. Ask about, and understand the process from LOI / term sheet to close. In both cases, the explanation was vague. Understand the history of their deal execution.

Term Sheet 70

Term Sheet Finance Reputation Founder 70

Feld Thoughts

APRIL 6, 2010

A few weeks ago, I wrote a post about The Proliferation of Standardized Seed Financing Documents. As many of you know, the issue is not only the term sheet, but also the underlying documents supporting the deal. Tags: Term Sheet seed documents VC. So, I’m going to leave it to them.

Term Sheet 118

Term Sheet LP Finance Email 118

Feld Thoughts

MARCH 11, 2010

I know I owe everyone a follow up to my post from last week titled The Proliferation of Standardized Seed Financing Documents. Tags: Angel Investing angel investors Term Sheet. To the many of you out there that emailed me in response, thanks for all of the thought, ideas, suggestions, and offers of help. More on that soon.

Term Sheet 122

Term Sheet Angel Investor Entrepreneur Finance 122

Feld Thoughts

FEBRUARY 28, 2011

The project started as an extension of our Term Sheet series and Letter of Intent series that we wrote on this blog in 2005 and 2006. It’s evolved into a much broader book covering financings, acquisitions, how VC firms work, and a bunch of other random things we think are important to entrepreneurs.

Term Sheet 134

Term Sheet Acquisition Finance Partner 134

Feld Thoughts

SEPTEMBER 20, 2011

Rather, they were just spouting what they believed was conventional wisdom about terms for seed deals. In one of the entrepreneur cases, I explained how it was likely that they were going to be on the wrong side of the valuation discussion in the next financing based on one of the terms.

Term Sheet 125

Term Sheet Seed Stage Angel Investor Valuation 125

Feld Thoughts

APRIL 29, 2015

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.

Atlanta 70

Atlanta Valuation Term Sheet Finance 70

Feld Thoughts

OCTOBER 12, 2011

If you want to see an actual convertible debt term sheet or the actual legal documents, take a look at the TechStars Open Sourced Model Seed Financing Documents. If you feel like we missed anything, or got anything wrong, or were confusing in our explanation, please chime in on the comments on the post.

Term Sheet 138

Term Sheet Warrant Open Source Valuation 138

Feld Thoughts

JUNE 1, 2015

I don’t know why I was in his address book, so I asked Dan, and he dug up his very first email to me, which happened to be about the term sheet series that my partner Jason Mendelson and I wrote that lead to our book Venture Deals.

Startup 70

Startup Term Sheet Merger Finance 70

Feld Thoughts

FEBRUARY 15, 2016

While going through my daily reading this morning, I came across a bunch of posts talking about how the sky was falling, Silicon Valley was in turmoil, financing was drying up everywhere, and all the unicorns were doomed. When I was an entrepreneur there was no public information about how term sheets worked or how investors thought.

Silicon Valley 70

Silicon Valley Term Sheet Early Stage New York 70

Feld Thoughts

JUNE 2, 2015

The entity getting screwed on this term are the founders, who now have a greater liquidation preference hanging over their heads than the dollars invested by the angels. We’ve been regularly running into another problem with doing a financing after companies have raised convertible notes.

Liquidation Preference 70

Liquidation Preference Cap Table Angel Investor Post-Money Valuation 70

Feld Thoughts

FEBRUARY 28, 2023

Corporate law: In Germany, most companies in general and most VC-financed companies are structured in the legal form of a “Gesellschaft mit beschränkter Haftung” (GmbH). Often, this integration results in VC-financed GmbH companies having little to do with the GmbH as envisaged by the law. Both samples are bilingual.

Germany 165

Germany Liquidation Preference Option Pool Advisory Board 165

Feld Thoughts

DECEMBER 31, 2015

The Term Sheet: A Startup Thriller Novel : I’m a big fan of the Startup Fiction genre. The Investment Answer : I was given this book with a note that it’s a clear, basic book on personal finances and investing. This was a quick, fun read. It’s that, but very basic.

Angel Investor 70

Angel Investor Investment Bankers Term Sheet Texas 70

Feld Thoughts

JULY 14, 2015

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70