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Keep Term Sheets Simple for Quicker Cash to Spend

Startup Professionals Musings

Based on my experience, and the book “ Attracting Capital from Angels ” by Brian Hill and Dee Powers, here are some key clauses that any investors expect on the first term sheet for the investment you need: Set the price. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.”

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A Primer on Angel Investment ‘Simple Term Sheets’

Startup Professionals Musings

According to Attracting Capital from Angels by Brian Hill and Dee Powers, here are some key clauses that angel investors expect on the first term sheet for the investment you need: Set the price. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” Liquidation preference.

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The Seeds Have Changed: An Epilogue to The New Venture Landscape

K9 Ventures

Low supply of companies with traction drove the valuations and deal sizes up. The risk here is what I refer to as the curse of over-capitalization. Seed stage was super tough. Seed is the New A. The seed round has ballooned. Valuations are rising to match. more traction means it takes longer. The Epilogue.

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Keep Term Sheets Simple for Quicker Cash to Spend

Gust

Based on my experience, and the book “ Attracting Capital from Angels ” by Brian Hill and Dee Powers, here are some key clauses that any investors expect on the first term sheet for the investment you need: Set the price. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.”

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The Silliness Of Recapping Seed Rounds

Feld Thoughts

A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The company spends the $1m building and launching their first product.