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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. I explain in the video what happened in my first company (e.g. This is wrong.

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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. NOTE: In the video I talked about how VC’s and entrepreneurs decide the total number of shares at the first major funding round and why it’s often a high number.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

The shares given out can either be common stocks or preferred stocks. ? Debt investment. Under this category, you have the angel investors who would invest their own money and Venture Capital or VC firms, who manage funds aimed towards specific startup sectors and stages. Equity investors. Debt investors.

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Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. I believe that Revenue-Based Investing (“RBI”) VCs are on the forefront of what will become a major segment of the venture ecosystem. Earnest Capital Shared Earnings Agreement (“SEAL”). Conferences.

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One Book Every Entrepreneur and VC Should Own

Both Sides of the Table

When I first started as a startup CEO in 1999 there were no guides on raising venture capital. To this day I’m still surprised how few CEOs really understand the differences between 2x liquidation preference and a liquidation preference with a 2x cap. This article originally ran on TechCrunch. Drag along rights?

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Examples of good startup term sheets

www.quora.com

Find Questions, Topics and People Add Question Add Question Venture Capital Venture Capital Term Sheets Startups Term Sheets What are examples of good startup term sheets? The BVCA (British Venture Capital Association) docs are here, with a link to a term sheet [link] ets/fea. org/2009/02. org/index.php?op.

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Why Uber is The Revenge of the Founders

Steve Blank

Almost overnight the position of venture capitalist dictating the terms of the deal has disappeared (at least for “hot” deals). Traditionally, in exchange for giving the company money, investors would receive preferred stock, and founders and employees owned common stock. Filed under: Venture Capital.

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