The Startup Toolkit

NOVEMBER 4, 2011

You’re facing two term sheets and have boiled them down to the most relevant facts, listed below. Vision for B2C, virality-driven community. The financials immediately jump out when we talk about term sheets: what’s the valuation? Which do you choose? 1.25mm total. Conveniently local. Looks good.

Term Sheet 31

Term Sheet Dilution Participating Preferred B2C 31

The Startup Toolkit

NOVEMBER 4, 2011

You’re facing two term sheets and have boiled them down to the most relevant facts, listed below. Vision for B2C, virality-driven community. The financials immediately jump out when we talk about term sheets: what’s the valuation? Which do you choose? 1.25mm total. Conveniently local. Looks good.

Term Sheet 20

Term Sheet Dilution Participating Preferred B2C 20

Both Sides of the Table

SEPTEMBER 2, 2009

But more spend = more viral opps = more revenue down the road. >50% of our revenue in now viral. I took money with a 3x participating preferred liquidation preference with 8% compounded interest annually. Many term sheets ensued. I had that against the backdrop of several term sheets.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329