article thumbnail

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

Tim Keane

Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.

article thumbnail

How Much Information Should you Give VCs for Due Diligence?

Both Sides of the Table

which really means, are you really so naïve as to have a discussion with a VC and you’re worried about sharing your high-level financial results and forecasts?). Another VC called the co-founder & tech head – Parker Harris. The only real benefit of their having this information is in preparation for a term sheet.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Going Concern Rules And Your Company

YoungUpstarts

When investors believe in the founders, products, or ideas they will provide companies with funding. Obtaining term sheets, note agreements, or even emails from lead investors stating their intentions to continue funding the entity may help support management’s assertion that they can raise more capital.

article thumbnail

LinkedIn: The Series A Fundraising Story ? AGILEVC

Agile VC

This also appears as a guest post at Fortune’s Term Sheet. Many assume it was a cakewalk, based on the success LinkedIn has enjoyed over time and the current stature of our founder/CEO Reid Hoffman (now Chairman). Yes… he was a very successful PayPal exec and previously co-founder & VP Product of SocialNet.

article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Flexible VC 102: Variations.

article thumbnail

Looking for investors? Here’s how to value your startup

The Next Web

In terms of techniques investors use to value your business, investors will study things like: revenue, cash flow or net income multiples from recent financings in your industry. a discounted cash flow analysis of forecasted cash flows from your business. Forecasted earnings growth is typically the #1 driver of your valuation (e.g.,

Valuation 167
article thumbnail

Top 10 questions on pitching an idea to investors

Up and Running

Most sophisticated investors will already have terms they typically prefer in a deal, but they should be open to discussion. I recommend speaking with the founders of other companies the investors have invested in to see what kinds of perks they provided. Here is a Quoro discussion on this topic: [link].