Scott Edward Walker

JUNE 9, 2011

Introduction This post originally appeared as part of the “ Ask the Attorney ” column I am writing for VentureBeat ; it is another installment of my ongoing series regarding venture capital term sheets. These rights are related to the investor’s liquidation preference. What Are Mandatory Conversion Rights?

Term Sheet 60

Term Sheet Conversion Rights Venture Capital Liquidation Preference 60

Both Sides of the Table

SEPTEMBER 2, 2009

I took money with a 3x participating preferred liquidation preference with 8% compounded interest annually. Coupled with my participating preferred from 1999 and 2000 I had more than $55 million of liquidation preferences. Many term sheets ensued. year old boy and another one due in 1 months.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Scott Edward Walker

JULY 7, 2011

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. The problem, of course, is that a so-called “walking dead” company rarely has the cash to buy-back the investors’ shares.

Term Sheet 49

Term Sheet Redemption Venture Capital Preferred Stock 49

The Startup Lawyer

JANUARY 10, 2011

There’s a lot of advice about (1) how to attract VCs, and (2) how to negotiate a venture capital term sheet. Both sets of advice tend to ignore the gap between an investor’s expression of investment interest and your startup’s receipt of the term sheet.

Term Sheet 64

Term Sheet Pre-Money Valuation Liquidation Preference Option Pool 64

Both Sides of the Table

JULY 25, 2011

When I first started as a startup CEO in 1999 there were no guides on raising venture capital. There were no explanations for all of the confusing details outlined in a term sheet. He gave me the human explanation for what the term meant. Or what “participating preferred&# stock is and how it can screw you.

Liquidation Preference 304

Liquidation Preference Term Sheet Cap Table Participating Preferred 304

Scott Edward Walker

SEPTEMBER 14, 2011

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. The Investors’ Right to Walk VC Term Sheets Are Non-Binding. VC Term Sheets Are Conditional.

Term Sheet 76

Term Sheet Due Diligence Liquidation Preference Redemption 76

Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). If you don’t, please educate yourself on this site, Venture Hacks and the term sheet series by Brad Feld/Jason Mendelson, among other places.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Startup Professionals Musings

FEBRUARY 3, 2018

If the entrepreneur wants total control of their own venture, with no one looking over their shoulder, they should work within the limits of their own resources, a process called bootstrapping. Every funding term sheet is followed by a set of milestone commitments, which should not be considered optional suggestions.

Term Sheet 140

Term Sheet Advisory Board Liquidation Preference Portfolio 140

Altgate

OCTOBER 8, 2009

The two most popular posts remain this one on term sheet negotiation and this one on venture debt , although this one on convertible debt is giving them a run for their money. Tips: $75 HOT All-Hands Team Meeting Board Management Tips For Startup CEOs Customer Support 2.0 Bookmark the permalink.

Term Sheet 39

Term Sheet Technical Review Michigan Liquidation Preference 39

Startup Professionals Musings

JULY 3, 2014

Angel and venture capital money always comes with strings attached, starting with the obvious ones outlined in the term sheet for the deal. Every funding term sheet is followed by a set of milestone commitments, which should not be considered optional suggestions.

Term Sheet 237

Term Sheet Advisory Board Liquidation Preference Startup 237

Startup Professionals Musings

AUGUST 16, 2015

If the entrepreneur wants total control of their own venture, with no one looking over their shoulder, they should work within the limits of their own resources, a process called bootstrapping. Every funding term sheet is followed by a set of milestone commitments, which should not be considered optional suggestions.

Term Sheet 120

Term Sheet Advisory Board Liquidation Preference Angel Investor 120

Altgate

JANUARY 5, 2009

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Layoffs In Venture Capital Be Glad You Are An Entrepreneur! ← Layoffs In Venture Capital Be Glad You Are An Entrepreneur! Tips: $75 Killver VC Pitch Deck Not much to learn here.

Technical Review 28

Technical Review Due Diligence Term Sheet Liquidation Preference 28

abovethecrowd.com

APRIL 20, 2016

In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. In 1999, record valuations coexisted with record IPOs and shareholder liquidity. The Sharks Arrive With Dirty Term Sheets.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

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

Gust

SEPTEMBER 17, 2014

Me: So, you raised venture capital? 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.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Up and Running

MARCH 29, 2017

See Also: What Do Venture Capital Firms Want? I was looking for wisdom to help make the decision, and found a gem in a lecture from my venture capital professor at HBS. My biggest takeaway from that process was that you have to have some kind of “magic” in order to raise venture capital.

Term Sheet 60

Term Sheet Venture Capital Liquidation Preference Valuation 60

Professor VC

APRIL 1, 2010

I had a discussi on with another angel investor a few months ago and he was bragging about the deal he just struck that included a 3X participating liquidation preference. There has been a lot of discussion and publishing of standard term sheets, including Y Combinator, TechStars and SeriesSeed. Venture News.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

The Startup Lawyer

JUNE 9, 2010

The term sheet was pretty much a done deal, when the startup’s CEO demanded a salary of $25,000. The startup community focuses most of the term sheet discussion on liquidation preferences and anti-dilution , but startup CEO salary is nonetheless an important issue. Case Study.

Salary 99

Salary Term Sheet Liquidation Preference Liquidity Event 99

Feld Thoughts

JUNE 2, 2015

Or, if you just want the paragraph, it’s: “If this note converts at a price higher than the cap that you have been given you agree that in the conversion of the note into equity you agree to allow your stock to be converted such that you will receive no more than a 1x non-participating liquidation preference plus any agreed interest.”.

Liquidation Preference 70

Liquidation Preference Cap Table Angel Investor Post-Money Valuation 70

Professor VC

JULY 25, 2013

Mike Markkula presenting Steve Jobs with first investment in Apple I recently watched an excellent documentary on PBS, Something Ventured: Risk, Reward, and the Original Venture Capitalists. An entrepreneur received two Series A term sheets, one lead by an international investor and the other from SH.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

SoCal CTO

JULY 13, 2010

10 Ways To Be Your Own Boss - A VC : Venture Capital and Technology , June 18, 2010 The folks at Behance and Cool Hunting asked me to talk at their 99% Conference a couple months ago. liquidation preference. liquidation preference. Here are the top 30 along with a brief snippet from the post. Productivity.

Cofounder 175

Cofounder Technical Cofounder Term Sheet Startup 175

Feld Thoughts

JULY 14, 2015

The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless. So they recapitalize the company. The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company. Sure – it happens.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Altgate

MARCH 17, 2009

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Global Nuances of Startup Compensation Obama Shoots Down 90% Tax Bracket → Popular Posts Posted on March 17, 2009 by fnazeeri Once again, here is a list of some of the more popular posts on this blog.

Term Sheet 28

Term Sheet Due Diligence Liquidation Preference Dividend 28

Both Sides of the Table

FEBRUARY 14, 2016

When I was an entrepreneur there was no public information about how term sheets worked or how investors thought. Put simply, it’s really hard to build a strong company when all of your competitors are giving away free s**t fueled by venture capital chasing winner-take-all returns. All of these are false.

Valuation 150

Valuation Down Round Startup Later Stage 150

Life Beyond Code

SEPTEMBER 27, 2011

The latter is the domain of venture capital, but the former is what we need to build the foundation for Capitalism 2.0 We want every entrepreneur to have access to our curriculum and incubation services, and give them an opportunity to build their businesses, irrespective of the scale of their entrepreneurial aspirations.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116