Rob Go

SEPTEMBER 4, 2018

Most of these rhyme with what we’ve said in the past, but some have also evolved to fit the changing landscape and our own convictions about what really matters for founders and their investors at the seed stage. Belief #2: Capital is plentiful. Lead investors are few. Belief #1: The best time to invest is early.

North America 36

North America Seed Stage Early Stage Lead Investor 36

Both Sides of the Table

MAY 13, 2018

If an investor isn’t engaging then they’re not suddenly going to get a term sheet. For simplicity I’ll assume you’ve raised some money from angels or seed investors and you’re either raising an A round or a B round of venture capital. I like to start with a list of approximately 40 qualified investors.

Term Sheet 332

Term Sheet Due Diligence Campaign Sales 332

Gust

SEPTEMBER 27, 2014

As such, your public profile should include everything non-confidential about your business that may attract the interest of potential investors, and your private profile should contain complete, accurate information about all the details of the business that will lead investors to request an in-person meeting with you.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

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. Simply put, pro rata rights permit the investor to maintain its percentage ownership in subsequent financing rounds. Introduction. Pro Rata Rights.

Preferred Stock 56

Preferred Stock Term Sheet Dilution Stock 56

Professor VC

APRIL 1, 2010

One comment made by Jason was that angels tend to be less sensitive than VCs on valuation and can potentially make it difficult to get a venture financing done at acceptable valuation. While this may certainly be the case with unsophisticated angels (much less of these now) or in cases with no lead investor, Id argue the opposite.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

Both Sides of the Table

APRIL 3, 2010

This is part of my ongoing series on Understanding Venture Capital. I recently wrote a blog post on understanding how the size and age of a venture capital fund might affect you when you’re raising money. We used the Y Combinator open source term sheet. If you accept my terms you’re done.

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

The Startup Lawyer

JUNE 9, 2010

Earlier this year, this issue presented itself when a client was the lead investor in a Series A round of about $2MM at a $4MM pre-money. The term sheet was pretty much a done deal, when the startup’s CEO demanded a salary of $25,000. Tags: Venture Capital salary series a startup. Case Study.

Salary 99

Salary Term Sheet Liquidation Preference Liquidity Event 99

Rob Go

FEBRUARY 3, 2014

A friend of mine just completed a very successful fundraise for an institutionally led seed-round of capital. Increasingly, these seem to be the most common ways that venture-funded companies get started. This is kind of the equivalent of “I’m in as long as you have a lead” but sounds a lot better. Feel free to call them”.

Term Sheet 73

Term Sheet Due Diligence Valuation Seed Stage 73

Professor VC

JANUARY 20, 2009

The Most Important Venture Capital Statistic. The funding search began the day after Labor Day and continued throughout the fall as the environment continued to worsen, and resulted in a term sheet the day before Thanksgiving. Our lead investor, Triangle Peak Partners closed on a $170 million first fund in late 2008.

Venture Capital 28

Venture Capital Silicon Valley San Jose Bootstrapping 28

Rob Go

JULY 17, 2014

For a seed stage venture capital firm, product/market fit comes down to two questions. We are still very small in the scope of venture capital firms, and we think that allows us to have a favorable balance of fund size to potential ownership in our portfolio companies. This leads to the second factor.

Seed Stage 69

Seed Stage Early Stage Due Diligence Liquidity Event 69

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

Gust

AUGUST 6, 2014

25 individual angel investors funding a startup on a convertible note. a single venture capital fund putting in the full amount as Series A Convertible Preferred investment. 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.

Term Sheet 170

Term Sheet Lead Investor Preferred Stock Common Stock 170

reidhoffman.org

NOVEMBER 12, 2013

Even though we glossed over those slides, investors knew they could come back to those slides later and dig into them if necessary. By this point in the presentation, our goal was to lead investors to believe: A network-empowered people search application could be really valuable. Who will be the next investors you pitch?

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

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

Venture Chronicles

JULY 16, 2010

Throughout my years in the venture capital business I was witness to some questionable behaviors and tactics, which in reality is par for the course in any business, but nothing could have prepared me for what I have seen in the last 2 years. The second scenario is the pulled term sheet.

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