Both Sides of the Table

MAY 9, 2018

You race back to the office to tell everybody how well it went and you wait for the follow-up call to have a partners’ meeting or talk about term sheets or at least dip into due diligence. The assistant tried to end the meeting twice but was shoooshed away. What do I do now?

Software Review 381

Software Review Churn Rate Due Diligence New York 381

Both Sides of the Table

SEPTEMBER 25, 2010

These days there are many lawyers that will do equity deals cheaply as long is it is a standardized, simplified term sheet, early stage, no serious investor / management debates, limited IP / customers / due diligence and as long as they perceive you as a “hot&# company that’s likely to need legal services for many years ahead.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Both Sides of the Table

JANUARY 21, 2010

Shame about not getting it in legal writing that you owned the original IP. For a very small fee they can get your Delaware C corp registration, make sure that you have IP protection and ensure you didn’t make an early bumbling mistakes that you’ll pay for dearly in the next 7-10 years of hard work. And Brad Feld.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Both Sides of the Table

JUNE 5, 2015

Another problem that arises in financings these days is that after a VC submits a $2 million term sheet all of a sudden a large number of “helpful investors” pop up who were waiting for a “strong lead” and now all of a sudden a $2 million round becomes a $2.75m round. Those are the big three. Size of my check.

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

Both Sides of the Table

FEBRUARY 25, 2010

We had many term sheets (it was 1999 and we had a pulse) and we were deciding which one to take. We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. We ended up agreeing a term sheet for $16.5 6 weeks’ later he didn’t have other term sheets.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Both Sides of the Table

JANUARY 29, 2010

Company B had already lined up a significant funding round ($20 million) from some of the most elite VCs on Sand Hill Road but hadn’t signed the term sheet. 6 months afterwards they laid off 75% of their staff and are existing on fumes to protect their IP to this day. Company A never raised their round.

Entrepreneur 296

Entrepreneur Silicon Valley Term Sheet France 296