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VC Optimism Returning But More Pain Ahead In Their Portfolios

Hunter Walker

Restructures, Down Rounds, and Pay to Plays. As The Information proclaims, “ Unicorn Fire Sales Ahead.” And fascinating new advances (and needs) in AI, climate, biology, etc are driving tech-IP driven startups. Whatever gets reported is just the tip of the iceberg.

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

Tim Keane

It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet. This results in a range of sale prices; in this example from $118.6MM to $21MM. Let’s start at the end.   So, let’s assume here we have an 8% non-cumulative dividend.

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Startup Founder Agreements

blog.simeonov.com

It outlines key points of agreement between founders around IP ownership, equity ownership, vesting, etc. For example, without a clear vehicle (a company) to contribute intellectual property into, a founder who walks away may mean that the future company won’t own its own IP. An email would do. The FastIgnite one is two pages.

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