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Venture Capital Q&A Session

Both Sides of the Table

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. In fact, far better if you haven’t raised venture capital. Do it early.

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How to Scale a Venture Capital (or Private Equity) Fund

David Teten

If you’re thinking of hiring a Partner, I suggest see How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm. HOF Capital provides hands-on support through our in-house team, plus a network of outside mentors who work with portfolio companies on an as-needed basis. For more, see the Startup Studio Playbook.

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Cram Down – A Test of Character for VCs and Founders

Steve Blank

Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. ” On one hand they’re right.

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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. More likely what you’ll see if you have an aggressive term sheet is “participating preferred&# stock. Tags: Startup Advice This Week in Venture Capital.

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8 Parameters To Bracket New Venture Funding Requests

Startup Professionals Musings

On the other hand, venture capital organizations typically look for needs that exceed $2 million. Most professional investors will expect preferred stock, a board seat, rights to later rounds and perhaps anti-dilution protection. Every type of investor has comfortable ranges and limits.

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Common Stock vs. Preferred Stock in Venture Funding Transactions

Growthink Blog

I get the same question a lot from entrepreneurs raising equity capital (venture capital or angel funding). The question is whether they need to issue common or preferred stock. The answer depends on how and what rights are defined in the preferred stock.

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8 Key Business Elements Set Startup Investor Interest

Startup Professionals Musings

On the other hand, venture capital organizations typically look for needs that exceed $2 million. Most professional investors will expect preferred stock, a board seat, rights to later rounds and perhaps anti-dilution protection. Every type of investor has comfortable ranges and limits.

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