Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues. The Valuation Question. Let’s start at the end.

Term Sheet 68

Term Sheet Valuation Dividend Pre-Money Valuation 68

Both Sides of the Table

JULY 22, 2010

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. Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. No hidden terms.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

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. If the entrepreneur wants total control of their own venture, with no one looking over their shoulder, they should work within the limits of their own resources, a process called bootstrapping.

Term Sheet 433

Term Sheet Advisory Board Liquidation Preference Startup 433

www.quora.com

JANUARY 16, 2011

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? Ycombinator open source term sheet is a good start for Seed deals. org/index.php?op.

Term Sheet 41

Term Sheet Startup Angel Investor Wiki 41

David Teten

SEPTEMBER 6, 2015

And they should be; the feeding frenzy in the innovation economy is in some cases because startups are eating the lunch of more established companies. Mari is now building a new venture in human-machine interaction within the Samsung accelerator, currently in stealth mode. New York Times’ timeSpace is a good example.

Venture Capital 60

Venture Capital Balance Sheet Technical Review Portfolio 60

Startup Professionals Musings

SEPTEMBER 26, 2015

Perhaps they're way off in their valuation (usually far too high), or paralyzed by fear at seeing the other terms, because they have no idea what's normal, and what's worth a fight to the death (their startup's). In very early startups, which have no valuation, the term sheet may specify a convertible note.

Term Sheet 120

Term Sheet Demand Preferred Stock Liquidation Preference 120

ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Many myths surround the subject of startup funding. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. You must have seen a lot of startups giving out promotions, discounts, and incentives at the early phase of their business.

Startup 150

Startup Elevator Pitch Entrepreneur Seed Stage 150

Startup Professionals Musings

JULY 16, 2023

None normally work for or provide funds for early-stage startups. In addition, they will likely take between 3% and 10% of any capital raised. 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.”

Early Stage 182

Early Stage Silicon Valley Private Equity Initial Public Offering 182

Both Sides of the Table

SEPTEMBER 25, 2010

Having re-read it, I believe his real premise instead is, “Fixed-size, multi-investor angel rounds are such a bad idea for startups that one wonders why things were ever done that way.&#. Either would be fine with startups, so long as they can easily change their valuation. When I’m in, I’m in. rings true to me.

Finance 286

Finance Term Sheet Technical Review Warrant 286

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

Both Sides of the Table

SEPTEMBER 18, 2014

On the phone … Me: So, you raised venture capital? Him: But it’s much cheaper to just use the Series Seed term sheets that every law firm has put out so convertible notes make more sense because they’re cheaper and easier. Startup Lessons' We raised a seed round. About $1 million. Me: With a cap?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Both Sides of the Table

APRIL 13, 2011

Yeah, that was when I changed for me…” “…there was so much positive feedback on demystifying this one element of venture capital. Brad’s start in Venture Capital. Venture Capital in Boulder and other smaller communities. “So Product Management – Brad and Mark discuss the role of Product Managers in Startups.

Technical Review 288

Technical Review Venture Capital Silicon Valley Software Review 288

Startup Professionals Musings

JANUARY 20, 2019

No real investor or venture capital firm asks for money from the company they are intending to invest in. 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.

Technical Review 228

Technical Review Non-disclosure Agreement Due Diligence Term Sheet 228

David Teten

AUGUST 19, 2019

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. 2018 also had the fewest number of angel-led financing rounds since before 2010.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Both Sides of the Table

JULY 29, 2009

You finally get your first term sheet. They’re giving me 48 hours to sign the term sheet or it expires? Will they really pull the term sheet if I don’t sign? Will they really pull the term sheet if I don’t sign? First, every term sheet has an expiration date in it.

Term Sheet 197

Term Sheet Technical Review Due Diligence Venture Capital 197

Both Sides of the Table

OCTOBER 19, 2009

On December 2nd, 2006 I wrote the blog post published later in this post when I was CEO of startup Koral about my experiences in pitching VCs. My blog linked to Brad Feld’s blog because I was so grateful for his series on term sheets and he was one of the biggest reasons that as a VC I felt compelled to blog. Tempus Fugit.

Venture Capital 274

Venture Capital Term Sheet San Diego Viral 274

Austin Startup

JULY 22, 2017

Back in December 2016 I had the idea to develop a startup pledge for diversity and inclusion here in Austin and since have informally been working with some folks to develop the idea. This is similar to something we did at Austin Ventures to encourage startups to make a donation to the Entrepreneurs Foundation of Central Texas.

Austin 54

Austin Angel Investor Startup Term Sheet 54

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

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. Of the Inc. 5000 companies, only 6.5%

Cofounder 78

Cofounder Technical Review Dividend Equity 78

Startup Professionals Musings

OCTOBER 26, 2020

None normally work for or provide funds for early-stage startups. In addition, they will likely take between 3% and 10% of any capital raised. 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.”

Silicon Valley 362

Silicon Valley Private Equity Initial Public Offering Term Sheet 362

Both Sides of the Table

JUNE 28, 2011

In this three-part series I will explore the ways that the Venture Capital industry has changed over the past 5 years that I would argue are a direct result of changes in the software industry, not the other way around. So it’s unsurprising that typical “A rounds&# of venture capital were $5-10 million.

Venture Capital 334

Venture Capital Software PHP Open Source 334

Both Sides of the Table

APRIL 19, 2011

I recently sat down with Matt Coffin , the founder of LowerMyBills, which sold for $400 million but was very nearly a bankruptcy only a few years early, and talked “startups.&#. Matt is one of the most transparent, focused & honest startup guys you’ll meet. Or read the quick, informative summary below the image!

Acquisition 304

Acquisition Warrant Customer Term Sheet 304

Hunter Walker

OCTOBER 31, 2020

So I’ve found that when you’re not already ‘in the door’ at a firm (ie went to school with the senior GP’s kids, worked at a startup they backed) that there are four different types of “qualifications” they are seeking. Instead I’ve written some stuff down — take a look and if you have any follow-up maybe we can handle over email.

North Carolina 90

North Carolina Hiring Angel Investor Technical Review 90

YFS Magazine

OCTOBER 8, 2016

It can be tempting to skip the term sheet and simply have your lawyer prepare the investment documents.

Term Sheet 112

Term Sheet Startup Venture Capital Finance 112

YoungUpstarts

OCTOBER 12, 2017

To outside investors, the future of early stage and startup companies can be murky. If there is insufficient cash, then the company should have a plan to obtain sufficient capital. For many startups this results in a need to raise additional financing through debt or equity arrangements.

San Francisco 114

San Francisco Forecast Early Stage Term Sheet 114

Gust

NOVEMBER 14, 2011

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 152

Technical Review Due Diligence Intellectual Property Private Equity 152

Up and Running

MAY 18, 2016

Reading lists are dime a dozen, but reading lists that focus on rapid-growth startup businesses? It’s the ultimate startup guide if you’re looking for systematic business growth and guidance on what not to do. The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses.

Startup 80

Startup Venture Capital Lean Angel Investor 80

The Startup Lawyer

JANUARY 10, 2011

There’s a lot of advice about (1) how to attract VCs, and (2) how to negotiate a venture capital term sheet. Both sets of advice tend to ignore the gap between an investor’s expression of investment interest and your startup’s receipt of the term sheet.

Term Sheet 64

Term Sheet Pre-Money Valuation Liquidation Preference Option Pool 64

www.xconomy.com

JUNE 9, 2012

Startups ›. View More in Startups ›. New San Diego VC Firm Emerges as ‘The Moneyball of Venture Capital’. The firm, Correlation Ventures, is using predictive analytics technology to tilt the odds in its favor. View More in Life Sciences ›. The Skqueak That Roars: New App Combines Drawing, Audio, Images.

San Diego 40

San Diego Venture Capital Technical Review San Francisco 40

The Next Web

SEPTEMBER 13, 2013

Thomas Clayton has started and run numerous high-tech startups in Silicon Valley. He is currently CEO of Bubbly , a social media startup backed by Sequoia Capital, SingTel Innov8, and JAFCO. The company is one of the largest VC–backed startups in Southeast Asia, having raised over $60M in funding.

Asia 132

Asia Silicon Valley India Term Sheet 132

Feld Thoughts

MARCH 5, 2018

It’s also why Jason co-teaches the venture capital course at CU Boulder. So when the founders of Hotshot , a startup that provides digital learning for lawyers, asked if they could come to Boulder and interview Jason and me for a video on raising venture capital, we happily obliged.

Venture Capital 77

Venture Capital Cofounder Video Partner 77

Scott Edward Walker

SEPTEMBER 14, 2011

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. The Investors’ Right to Walk VC Term Sheets Are Non-Binding. VC Term Sheets Are Conditional.

Term Sheet 76

Term Sheet Due Diligence Liquidation Preference Redemption 76

Mucker Lab

AUGUST 27, 2014

My father eventually decided on Santa Clara (Saratoga, more specifically), and so I grew up in the shadows of the orchards of Cupertino and the nondescript concrete startup boxes of Santa Clara. Encyclopedic knowledge of term sheets and startup buzzwords can be quickly learned, trained, and packaged.

Los Angeles 138

Los Angeles Southern California Silicon Valley Technical Review 138

Startup Professionals Musings

JANUARY 18, 2017

No real investor or venture capital firm asks for money from the company they are intending to invest in. 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.

Technical Review 120

Technical Review Non-disclosure Agreement Due Diligence Entrepreneur 120

David Teten

MAY 19, 2017

I’ve also published research here on private equity , venture capital , hedge funds and mutual funds , and angel investing , as well as on fund management : origination , due diligence , investment research , and portfolio acceleration. Deal Camp/ VC Unlocked (500 Startups + UC Berkeley). CONFERENCES. PrivCapAcademy.

Private Equity 60

Private Equity Venture Capital Equity New York City 60

Startup Professionals Musings

SEPTEMBER 26, 2013

No real investor or venture capital firm asks for money from the company they are intending to invest in. 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.

Technical Review 202

Technical Review Non-disclosure Agreement Due Diligence Entrepreneur 202