One of the dangers of taking investment from individual angels,rather than through an angel group or investment firm, is that theyhave less reputation to protect. Deal terms with angels vary a lot. The startup didnthave enough money to pay a lawyer even to read it, let alone negotiatethe terms, so the deal fell through. MORE >>

The remaining seats are held by outside experts recruited opportunistically--the board should regularly consider skill sets and credentials that would add value to the board (contacts, reputation, domain knowledge, customer perspective, CEO coaching experience.) The right decision is an objective assessment of what is best for the company. MORE >>

Of the most popular posts that Brad and I have created are our series on Term Sheets , Compensation , and Mergers and Acquisitions. This is the first in a series of blogs about how to deal with business failure, how to minimize liabilities, and how to keep your spirits up and your business reputation intact. Take it away, Roger. MORE >>

Equity financings normally give investors explicit rights (most equity terms sheets specify board seats, specific blocking conditions, etc) in addition to standard shareholder rights under whatever state the company incorporated in (usually CA or Delaware). So any discussion of convertibles without caps seems to me a red herring. MORE >>

Your ego, reputation and personal savings are on the line, but the rewards and successes are yours, and to have control over your destiny is a joy few ever experience. The first installment can be found here. Part II of What Startups Can Learn from Sailors: A For Attitude. Conditions are often stressful. It impacts everything. Joy of Control. MORE >>