Genuine VC

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Super Pro-Rata Rights Aren't Super

Genuine VC

Prior to the next round, the startup risks being run at a higher burn-rate so that it looks positioned to need the larger financing. All of these scenarios are not just detrimental to the entrepreneur/startup, but also to the VC funders themselves who want to eagerly invest in a company which is doing well.

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The VC Fundraising Timing Paradox

Genuine VC

The first venture firm at any one juncture progressing to the next step (first meeting, second meeting, diligence, partner meeting, term sheet, etc.) With it, the startups’ fundraising has the best chance of being optimized, thus hopefully starting a virtuous loop around other aspects of the business.

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The Problem with Talking to VCs

Genuine VC

He lamented that if the meetings with this venture firm soon led to a term sheet, he’ll be faced with a tough problem of a binary decision – take whatever they offer him (which was likely too much money for what the company needs now at not a great price) or risk losing any funding options. Fair enough.

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The Problem with Talking to VCs

Genuine VC

He lamented that if the meetings with this venture firm soon led to a term sheet, he’ll be faced with a tough problem of a binary decision – take whatever they offer him (which was likely too much money for what the company needs now at not a great price) or risk losing any funding options. Fair enough.

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Myth Busters: Debunking Seven Conventional Wisdom Maxims of Venture Capital

Genuine VC

MYTH: Goal of entrepreneur’s VC fundraising is a term sheet. REALITY: Goal of an entrepreneur’s VC fundraising should be a closed investment, which includes both partnership conviction and an agreement of key terms. Even the most elementary venture capitalist has the privilege of serving on boards of a number of startups.