Rob Go

SEPTEMBER 4, 2018

As the venture capital industry has evolved, more and more seed investors are passing on traditionally “seed stage” startups because there isn’t enough traction. We are also seeing more investors try to be a part of syndicated A rounds for companies that are raising $5M or more and are really not what most would consider “seed” stage.

North America 36

North America Seed Stage Early Stage Lead Investor 36

Gust

SEPTEMBER 27, 2014

Browse through the many hundreds of video answers to startup questions that we’ve filmed from the world’s leading VCs and angels. You really should have spent a heck of a lot of time beforehand in thinking through all of the issues surrounding your startup.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

View from Seed

AUGUST 12, 2015

In particular, he asked one very clever question of VCs to run a smoother, more effective process, culminating in four term sheets from interested, lead investors. The post The Market Size Fallacy for Seed-Stage Startups appeared first on NextView Ventures.

Seed Stage 120

Seed Stage Marketing Angel Investor Term Sheet 120

View from Seed

AUGUST 12, 2015

In particular, he asked one very clever question of VCs to run a smoother, more effective process, culminating in four term sheets from interested, lead investors. The post The Market Size Fallacy for Seed-Stage Startups appeared first on The View From Seed.

Seed Stage 120

Seed Stage Marketing Angel Investor Term Sheet 120

OnlyOnce

APRIL 27, 2021

Last week, I blogged about Bolster’s Board Benchmark survey results , which really laid bare the lack of diversity on startup boards. My new mantra for Startup Boards is simple: 1-1-1. Then 1 independent for every 1 investor. Independent seats aren’t necessarily easy to open up. Seats don’t turn over often.

Vesting 48

Vesting Cofounder Startup Term Sheet 48

Scott Edward Walker

JUNE 9, 2019

Over the past few weeks, two of my clients have received financing term sheets in which the investors requested super pro rata rights. Accordingly, I thought it would be helpful for founders to discuss these rights and to point out the problems they create for startups. Introduction. Pro Rata Rights.

Preferred Stock 56

Preferred Stock Term Sheet Dilution Stock 56

Both Sides of the Table

JUNE 5, 2015

Over the years I’ve written extensively about the downsides of convertible notes for startups such as here , here and here. If you think the other investors will be super value-added – no problem! For me it’s clear. As I mentioned if you raise $2m on $8m pre-money you take 20% dilution.

Pre-Money Valuation 150

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

The Startup Toolkit

NOVEMBER 4, 2011

You’re facing two term sheets and have boiled them down to the most relevant facts, listed below. The financials immediately jump out when we talk about term sheets: what’s the valuation? Next, we check that we’re safe from any particularly onerous terms like participation preferred. 1.25mm total.

Term Sheet 31

Term Sheet Dilution Participating Preferred B2C 31

The Startup Lawyer

JUNE 9, 2010

A startup’s Series A financing shouldn’t be a large liquidity event or salary payday for the startup’s founders. While a startup typically receives millions of dollars in a Series A, if too much of that $$$ flows guaranteed to the founders, various incentives get out of whack. Case Study.

Salary 99

Salary Term Sheet Liquidation Preference Liquidity Event 99

ithacaVC

FEBRUARY 27, 2014

I like the practice of VCs giving term sheets that provide for a specific size for the total round and then stating how much the specific VC will contribute. At the early stage, the founding team often has lots of “interest” lined up waiting for a lead. Dealing with VCs Startup Life' Go raise some bucks!

Term Sheet 71

Term Sheet Aggregator Lead Investor Early Stage 71

www.xconomy.com

JUNE 9, 2012

Startups ›. View More in Startups ›. The last thing you wanted was any more VCs like that,” says Coats, who began thinking that what lead VCs and entrepreneurs really want was additional venture investors whose participation would be less complicated—more like a co-investor—and who could decide on joining in a deal in a week or two.

San Diego 40

San Diego Venture Capital Technical Review San Francisco 40

The Startup Toolkit

NOVEMBER 4, 2011

You’re facing two term sheets and have boiled them down to the most relevant facts, listed below. The financials immediately jump out when we talk about term sheets: what’s the valuation? Next, we check that we’re safe from any particularly onerous terms like participation preferred. 1.25mm total.

Term Sheet 20

Term Sheet Dilution Participating Preferred B2C 20

David Teten

SEPTEMBER 6, 2015

And they should be; the feeding frenzy in the innovation economy is in some cases because startups are eating the lunch of more established companies. Corporate venture groups are making it easier for startups to access this talent by setting up learning and co-working spaces on their premises. Some corporate funds now lead rounds.

Venture Capital 60

Venture Capital Balance Sheet Technical Review Portfolio 60

Gust

DECEMBER 27, 2012

The second reason is that investors want to know that YOU believe in your own startup…and the best way for you to demonstrate that is to show that you have personally put your own money where your mouth is. Start by letting absolutely everyone know that you’ve got a great startup looking for early investors.

Software Review 164

Software Review Term Sheet Technical Review Angel Investor 164

Both Sides of the Table

APRIL 3, 2010

We used the Y Combinator open source term sheet. We signed the term sheet within 48 hours and had funded in under 2 weeks. They don’t mind being the lead investor on deals that they seeded. If you accept my terms you’re done. They elected to sign my term sheet.

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

Both Sides of the Table

AUGUST 1, 2010

They either do too many seed investments (for which they can spend no quality time with any) or they treat it as an option (“if you succeed come back and see us and we’ll match any term sheet you get&# ) – they view it as a sort of “right of first refusal.&#. The signaling affect is overrated.

Post-Money Valuation 298

Post-Money Valuation Term Sheet Warrant Partner 298

ithacaVC

JANUARY 14, 2014

” To which the Series B potential lead investor says “hey, your post-money is not my problem – why should I invest at higher revenue multiples than what the industry is seeing? The best route to a high valuation is to get multiple term sheets… again obviously. ” Expect this discussion.

Pre-Money Valuation 58

Pre-Money Valuation Post-Money Valuation Valuation Term Sheet 58

Rob Go

JULY 17, 2014

As former operators and product-oriented entrepreneurs, Dave, Lee, and I tend to think of our firm as a startup company and our approach to investing as our product. We want to be able to comfortably lead these rounds and speak for 1/3 – 1/2 of the capital or more. This leads to the second factor.

Seed Stage 69

Seed Stage Early Stage Due Diligence Liquidity Event 69

Gust

AUGUST 6, 2014

25 individual angel investors funding a startup on a convertible note. In all cases, the one fundamental requirement is that the company and the investor agree on how much is being invested, and on what terms. These items are included in what is known as a term sheet.

Term Sheet 170

Term Sheet Lead Investor Preferred Stock Common Stock 170

Gust

NOVEMBER 16, 2013

But because the single biggest problem with early-stage funding is ‘getting the first pickle out of the jar’ (that is, getting someone to provide a term sheet and make the first commitment), in recent years an interesting alternative to this has arisen. original post can be found on Quora @ [link] *.

Lead Investor 150

Lead Investor Term Sheet Early Stage Angel Groups 150

reidhoffman.org

NOVEMBER 12, 2013

It has many stylistic errors — and a few substantive ones, too — that I would now change having learned more, but I realized that it still provides useful insights for entrepreneurs and startup participants outside of the Greylock network, particularly across three areas of interest: how entrepreneurs should approach the pitch process.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

View from Seed

OCTOBER 22, 2015

Here’s a quick look at the graphic as published in David’s article (click to view a larger version): In some cases, these steps are blurred or shuffled slightly in terms of sequence, but broadly speaking, most VC firm processes look basically like this. Work on securing a lead investor who can then help in forming a syndicate.

Term Sheet 120

Term Sheet Due Diligence Seed Stage Seed Capital 120

Austin Startup

MAY 17, 2017

It’s pretty well known that startups usually undergo a meaningful change in Board composition at their Series A round. At a minimum, the lead investor(s) of the round get Board seats; although they shouldn’t get Board control. Less has been written about what startup boards tend to look like before a Series A round.

Seed Stage 48

Seed Stage Startup Cap Table Angel Investor 48

Gust

OCTOBER 26, 2011

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. Having made it almost to the end of our sample term sheet: Documentation. Investor Questionnaire. Convertible Promissory Note(s).

Finance 79

Finance Term Sheet Covenant Accredited Investor 79

Business Plan Blog

DECEMBER 26, 2013

The individual is likely to be the lead investor in the venture and may join the Board of Directors. This process may include the provision of various scenarios on revenues and costs as the investors validate forecasts initially presented. Startup Funding' Many angels have business schedules and are travel frequently.

Angel Investor 51

Angel Investor Due Diligence Pre-Money Valuation Angel Groups 51

Venture Chronicles

JULY 16, 2010

The second scenario is the pulled term sheet. This is definitely on the upswing and reflects the issues that funds are having with their limited partner investors. After the term sheet is executed the investment fund will go into a deeper level of due diligence with the company, a process that is equivalent to an anal probe.

Due Diligence 28

Due Diligence Term Sheet Limited Partner LP 28

Austin Startup

APRIL 1, 2017

out of state VCs Don’t rush a term sheet In assessing financing terms and interacting with their lead investors, most founders instinctively focus on two core things: economics and control. Do not take that selection lightly. Background Reading: How to avoid “captive” company counsel Local v.

Term Sheet 48

Term Sheet Institutional Investors Technical Review Lead Investor 48