Startup Professionals Musings

JULY 11, 2021

As an angel investor to startups, I’m still surprised to find entrepreneurs who expect investors to give them money, and assume no strings attached. Angel and venture capital money always comes with ownership and management implications, starting with the obvious ones outlined in the term sheet for the deal.

Term Sheet 433

Term Sheet Advisory Board Liquidation Preference Startup 433

Startup Professionals Musings

JANUARY 27, 2012

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from either. Your best strategy is to bring your own term sheet to the negotiation as a starting point.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 223

Startup Professionals Musings

SEPTEMBER 14, 2010

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from an angel, either. Your best strategy is to bring your own term sheet to the negotiation as a starting point. The check won’t clear in time to save you.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Startup Professionals Musings

JULY 26, 2013

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process. Some startups do nothing to prepare for the due diligence process, assuming the people and business plan documents will speak for themselves.

Technical Review 242

Technical Review Due Diligence Startup Term Sheet 242

Startup Professionals Musings

SEPTEMBER 10, 2014

Even though the color of their money is always green, all startup investors are not the same. Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. Personally visit another startup funded by this investor. It’s no fun for either side.

Technical Review 257

Technical Review Due Diligence Term Sheet Offshore 257

Startup Professionals Musings

JANUARY 17, 2015

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. Make sure everyone accurately posts their role with your startup on social media profiles, resumes, and references.

Technical Review 120

Technical Review Due Diligence Startup Term Sheet 120

Startup Professionals Musings

JULY 16, 2023

None normally work for or provide funds for early-stage startups. For these fees, they will develop a business plan, solicit investors, and negotiate term sheets to a closing. Many investment banks even call themselves “boutiques.” Commercial banking is also known as business banking.

Early Stage 182

Early Stage Silicon Valley Private Equity Initial Public Offering 182

Startup Professionals Musings

JUNE 29, 2012

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process. Some startups do nothing to prepare for the due diligence process, assuming the people and business plan documents will speak for themselves.

Technical Review 245

Technical Review Due Diligence Term Sheet Startup 245

Startup Professionals Musings

MARCH 27, 2016

Even though the color of their money is always green, all startup investors are not the same. Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. Personally visit another startup funded by this investor. It’s no fun for either side.

Technical Review 120

Technical Review Due Diligence Term Sheet Offshore 120

Startup Professionals Musings

FEBRUARY 4, 2012

After you have successfully attracted angels or venture capital with your business case, your million dollar product idea, and you have a signed term sheet, there is still one more hurdle to overcome before investors write the check. This is the dreaded “due diligence” process.

Technical Review 237

Technical Review Due Diligence Intellectual Property Private Equity 237

Startup Professionals Musings

JANUARY 20, 2019

Deposit required to hold your terms. In this scam, you are offered a very attractive term sheet due to close in 90 days or so, with a deposit required to hold your position while due diligence is being conducted. Work at home to fund your startup.

Technical Review 228

Technical Review Non-disclosure Agreement Due Diligence Term Sheet 228

Startup Professionals Musings

OCTOBER 26, 2020

None normally work for or provide funds for early-stage startups. For these fees, they will develop a business plan, solicit investors, and negotiate term sheets to a closing. Many investment banks even call themselves “boutiques.” Commercial banking is also known as business banking.

Silicon Valley 362

Silicon Valley Private Equity Initial Public Offering Term Sheet 362

Startup Professionals Musings

JULY 3, 2014

As an Angel investor to startups, I’m still surprised to find entrepreneurs who expect investors to give them money, and then disappear into the sunset. Angel and venture capital money always comes with strings attached, starting with the obvious ones outlined in the term sheet for the deal.

Term Sheet 237

Term Sheet Advisory Board Liquidation Preference Startup 237

Startup Professionals Musings

DECEMBER 28, 2010

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process. Some startups do nothing to prepare for the due diligence process, assuming the people and business plan documents will speak for themselves.

Technical Review 229

Technical Review Due Diligence Term Sheet Angel Investor 229

Startup Professionals Musings

JANUARY 18, 2017

Deposit required to hold your terms. In this scam, you are offered a very attractive term sheet due to close in 90 days or so, with a deposit required to hold your position while due diligence is being conducted. Work at home to fund your startup.

Technical Review 120

Technical Review Non-disclosure Agreement Due Diligence Entrepreneur 120

Startup Professionals Musings

SEPTEMBER 26, 2013

Deposit required to hold your terms. In this scam, you are offered a very attractive term sheet due to close in 90 days or so, with a deposit required to hold your position while due diligence is being conducted. Work at home to fund your startup. For more details, see a whole article I wrote earlier on this subject.

Technical Review 202

Technical Review Non-disclosure Agreement Due Diligence Entrepreneur 202

Startup Professionals Musings

SEPTEMBER 10, 2013

None normally work for or provide funds for early-stage startups. For these fees, they will develop a business plan, solicit investors, and negotiate term sheets to a closing. investment bank entrepreneur startup funding IPO' Many investment banks even call themselves “boutiques.” Marty Zwilling.

IPO 205

IPO Silicon Valley Private Equity Initial Public Offering 205

Startup Professionals Musings

APRIL 3, 2012

If your startup desperately needs an investor, you may not care if the investor is a so-called “angel” investor, or a venture capitalist (VC). But I have found that making the right choice at the right time can have a major impact on your long-term valuation, and the decision process is complex. Type of startup.

IRR 248

IRR Term Sheet Startup Valuation 248

Startup Professionals Musings

OCTOBER 22, 2010

After you have successfully attracted angels or venture capital with your business case, your million dollar product idea, and you have a signed term sheet, there is still one more hurdle to overcome before investors write the check. This is the dreaded “due diligence” process.

Technical Review 225

Technical Review Due Diligence Intellectual Property Private Equity 225

Startup Professionals Musings

FEBRUARY 3, 2018

As an angel investor to startups, I’m still surprised to find entrepreneurs who expect investors to give them money, and assume no strings attached. Angel and venture capital money always comes with ownership and management implications, starting with the obvious ones outlined in the term sheet for the deal.

Term Sheet 140

Term Sheet Advisory Board Liquidation Preference Portfolio 140

Startup Professionals Musings

APRIL 22, 2012

If the term sheet process turns to pure torture, it may be time to respectfully bow out. Also, make sure your lawyer writes the initial investment document or term sheet - not the investor. Litigious angels. The litigious investor will look for almost any excuse to take you to court.

Angel Investor 281

Angel Investor Term Sheet Entrepreneur Due Diligence 281

Startup Professionals Musings

JANUARY 22, 2011

None normally work for or provide funds for early-stage startups. None of these investment banks offer traditional banking services, as you would expect from one of the following: Retail banks Commercial banks Credit unions Savings and loans As startup founders, you first need to deal with one of these banks, probably a commercial bank.

Silicon Valley 211

Silicon Valley Private Equity Initial Public Offering Startup 211

Startup Professionals Musings

MAY 26, 2013

If the term sheet process turns to pure torture, it may be time to respectfully bow out. Also, make sure your lawyer writes the initial investment document or term sheet - not the investor. entrepreneur startup investor angels business' Not all shark angels are on the Shark Tank TV show. Litigious angels.

Angel Investor 263

Angel Investor Term Sheet Due Diligence Early Stage 263

Startup Professionals Musings

NOVEMBER 11, 2010

If your startup desperately needs an investor, you may not care if the investor is a so-called “angel” investor, or a venture capitalist (VC). But I have found that making the right choice at the right time can have a major impact on your long-term success, and the decision process is complex. Type of startup. Marty Zwilling.

IRR 225

IRR Startup Term Sheet Angel Investor 225

Startup Professionals Musings

AUGUST 16, 2015

As an angel investor to startups, I’m still surprised to find entrepreneurs who expect investors to give them money, and assume no strings attached. Angel and venture capital money always comes with ownership and management implications, starting with the obvious ones outlined in the term sheet for the deal.

Term Sheet 120

Term Sheet Advisory Board Liquidation Preference Angel Investor 120

Startup Professionals Musings

JANUARY 31, 2010

None really provide funds for early-stage startups. None of these investment banks offer traditional banking services, as you would expect from one of the following: Retail banks Commercial banks Credit unions Savings and loans As startup founders, you first need to deal with one of these banks, probably a commercial bank.

Silicon Valley 120

Silicon Valley Private Equity Startup Initial Public Offering 120

Startup Professionals Musings

DECEMBER 3, 2010

If the term sheet process turns to pure torture, it may be time to respectfully bow out. Also, make sure your lawyer writes the initial investment document or term sheet - not the investor. Litigious angels. The litigious investor will look for almost any excuse to take you to court.

Angel Investor 244

Angel Investor Term Sheet Due Diligence Early Stage 244

Startup Professionals Musings

AUGUST 3, 2015

Most new entrepreneurs assume that great investors will find their startups based on the compelling solution the founders have created. Don’t wait until your startup is out of money before looking for an investor. Don’t be afraid to ask an investor group leader for its track record, sweet spot and connections to startups funded.

Cost 120

Cost Angel Groups Due Diligence Silicon Valley 120

Startup Professionals Musings

MARCH 12, 2023

They fail to realize that the considerations are quite different for each, which can make or break their investment efforts, and ultimately their startup. More importantly, the focus on numbers tends to hide other more subjective issues that could be more important for any given startup. How big is your startup opportunity?

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

Startup Professionals Musings

DECEMBER 26, 2021

On the other hand, when negotiating a financing for your company, you should never present your term sheet first. Do your homework on the Internet and through contacts to find out their strengths, weaknesses, biases, curiosities, and insecurities, Knowledge is power, and that can be used for leverage.

Term Sheet 328

Term Sheet Bootstrapping Finance Startup 328

Startup Professionals Musings

JUNE 6, 2022

Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. First of all, it’s more of an investment in people than in a business, since the startup is usually an idea barely half-baked when they need your money. Start in a business domain you know well.

Liquidity Event 300

Liquidity Event Angel Investor SEC Accredited Investor 300

Startup Professionals Musings

JUNE 13, 2020

They fail to realize that the considerations are quite different for each, which can make or break their investment efforts, and ultimately their startup. More importantly, the focus on numbers tends to hide other more subjective issues that could be more important for any given startup. How big is your startup opportunity?

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314

Startup Professionals Musings

NOVEMBER 1, 2013

Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. First of all, it’s more of an investment in people than in a business, since the startup is usually an idea barely half-baked when they need your money. Start in a business domain you know well.

Accredited Investor 219

Accredited Investor Liquidity Event Stock SEC 219

Startup Professionals Musings

SEPTEMBER 6, 2019

Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. First of all, it’s more of an investment in people than in a business, since the startup is usually an idea barely half-baked when they need your money. Start in a business domain you know well.

Liquidity Event 224

Liquidity Event SEC Entrepreneur Accredited Investor 224

Startup Professionals Musings

SEPTEMBER 24, 2012

Reuters TV Interview by Rhonda Schaffler Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. First of all, it’s more of an investment in people than in a business, since the startup is usually an idea barely half-baked when they need your money.

Portfolio 228

Portfolio Accredited Investor Liquidity Event SEC 228

Startup Professionals Musings

JUNE 5, 2016

They fail to realize that the considerations are quite different for each, which can make or break their investment efforts, and ultimately their startup. More importantly, the focus on numbers tends to hide other more subjective issues that could be more important for any given startup. How big is your startup opportunity?

Angel Investor 120

Angel Investor IRR Valuation Startup 120

Startup Professionals Musings

AUGUST 1, 2011

On the other hand, when negotiating a financing for your company, you should never present your term sheet first. Do your homework on the Internet and through contacts to find out their strengths, weaknesses, biases, curiosities, and insecurities, Knowledge is power, and that can be used for leverage.

Term Sheet 232

Term Sheet Bootstrapping Finance Startup 232