Tim Keane
JANUARY 12, 2010
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. and walked through each proposed term and why it is or isn’t important.
Both Sides of the Table
SEPTEMBER 25, 2010
With sufficiently lightweight standardized equity terms (and some changes in investors’ and lawyers’ expectations about equity rounds) you might be able to do the same thing with equity instead of debt. Either would be fine with startups, so long as they can easily change their valuation. I agree on all points.
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YoungUpstarts
OCTOBER 28, 2015
Craig Schmitz, a partner in the Technology Companies Group at law firm Godwin Proctor LLP who works on corporate, governance, board and fundraising issues, and Erika Fisher, an associate in the firm’s Business Law Department who deals with IP, fielded questions about the legal issues startups face. ” The Cost of Financing.
David Teten
JANUARY 19, 2021
Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Womble Bond Dickinson has released a white paper on Performance Aligned Stock and a term sheet on ImpactTerms.org. . (If Flexible VC offers you this. Flexible VC: Compensation-based. Flexible VC: Blended Return.
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.
Both Sides of the Table
JUNE 5, 2015
In the old days VCs funded off of a “pre-money” valuation. If you add the pre-money valuation (let’s say $8 million) to the amount of money you’re raising (let’s say $2 million) you get the post-money valuation. I can boil it down to how this tension plays out. Those are the big three.
ithacaVC
APRIL 25, 2012
If you want to scare off VCs, start your pitch with “we are looking to raise $X at a pre-money valuation of $Y” Stating how much you want to raise is fine and recommended. However, stating a desired pre-money valuation early in the process is not a good idea. Here is why.
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