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The Legal Side of Entrepreneurship

YoungUpstarts

Startups need to understand how to manage the seed money they receive from investors and VCs. Investors typically negotiate from a term sheet, which if not handled properly can create problems that can hurt or kill the startup’s chances when they do their Series A round of funding. Board and Stockholder Votes. .

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Instead of sticking a fork in the venture market, realize. there is no fork

This is going to be BIG.

This is a company that, according to the article, got term sheets from half of the VCs that expressed interest in the company. Did I mention it only took the founder a month? The industry has made it very easy for companies to raise seed money through online marketplaces like Angel List, accelorators.

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A Quality Benchmark for Accelerators: The Global Accelerator Network

Feld Thoughts

Provide some sort of seed capital to their founders. Take a small amount of equity (usually ~6%) and overall have terms that are favorable to entrepreneurs. Accelerators business david cohen entrepreneur global accelerator network Seed money TechStars United States Venture Capital'

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Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

If a company has reached a level of success, has been around for a few years and you believe the company has potential to break out into a much bigger company then you should let the founders take money off of the table. Not FU money, but “feed the family&# money. I raised $500k in seed money to start the company.

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Entrepreneurshit. The Blog Post on What It’s Really Like.

Both Sides of the Table

You’d imagine that every founder was getting rich. Actually, positive outcomes for founders are quite rare. As a startup founder you rarely have much money in your bank accounts. But why don’t you just give me the damn term sheet you promised so I can trust you even more. It’s not.

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Understanding the Risks of VC Signaling

Both Sides of the Table

Chris Dixon provided some commentary on Twitter that he believes I missed “the most important point about fund size.&# He’s specifically referring to his point of view that entrepreneurs shouldn’t take seed money from “big VC’s&# (he defines them as > $100 million). You raised angel money.

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To Fundraise While You're Not Fundraising or to Not Fundraise While You're Not Fundraising? That is the Question.

This is going to be BIG.

On the other hand, some founders *literally* aren't fundraising. You think you're getting this big fat check compared to the seed money you raised, but they're actually doing something more like dipping their toes in the water. A lot of founders worry about information sharing. It's less signal than you think.