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Why You Don’t Want to Give Financial Information to All of Your Investors

Both Sides of the Table

There’s another issue I can add to your list of things to be aware of – information rights. Generally speaking in venture capital financings the legal documents will specify that only “major investors” (a threshold set in the agreement – which can be $500,000 investor or more). You betcha.

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Your Entrepreneur World Changes When You Take Money

Startup Professionals Musings

Angel and venture capital investors rarely just give you the cash, and stand back to wait for you to spend it the way you want. Both angel investors and venture capital partners like to make personal visits to your facility or a regular basis, sometimes unannounced, to see how the business is running.

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New Entrepreneurs Think Investor Money is All Fun

Startup Professionals Musings

Angel and venture capital investors rarely just give you the cash, and stand back to wait for you to spend it the way you want. Both angel investors and venture capital partners like to make personal visits to your facility or a regular basis, sometimes unannounced, to see how the business is running.

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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

If you don’t, please educate yourself on this site, Venture Hacks and the term sheet series by Brad Feld/Jason Mendelson, among other places. If you really want to understand the nuances in venture capital financing documents, please review the NVCA model venture capital financing documents. . under $500K).

Finance 70
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How to Evaluate Firms for a Seed VC Syndicate

Genuine VC

Term-driving investor approach – An entrepreneur finds a lead (quasi-)institutional venture investor to price and set the structure/dynamics of the round, working together to bring in additional syndicate partners (either/both other funds and individual angels).

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The Truth About Investor Updates

Haystack

Contrast that with the ones where it’s difficult to pull clear information out of — those startups don’t make it into the conversation unless it’s obvious to everyone things are working. For angels and early-stage pre-seed and seed firms, most of those financings do not come with information rights.

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Why the Blockchain is so disruptive for venture capital

Version One Ventures

And so, we keep hearing how venture capital is about to be disrupted. Then, if you win the deal, you have major influence on the development of the start-up through negotiated governance mechanisms like board seats, information rights, anti-dilution rights, etc. We’ve all heard this song before.