Tim Keane

JANUARY 12, 2010

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.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.

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Term Sheet Valuation Dividend Liquidation Preference 68

The Startup Magazine

SEPTEMBER 15, 2020

It is a type of financing that investors can provide to startups and small businesses which are believed to have the potential for success in the long term. Understand VC Term Sheets. A venture capital term sheet is a “non-binding listing of preliminary terms for venture capital financing”.

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Venture Capital Technical Review Software Review Security 144

Startup Professionals Musings

MAY 11, 2020

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. If all this checking sounds a bit paranoid and unnecessary, it may be time to take another look at some questionable investor practices and onerous term sheet requests.

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Technical Review Due Diligence Term Sheet Offshore 310

Hunter Walker

AUGUST 7, 2021

The phases of fundraising, how to get to a first term sheet, and what to do once you’ve got an initial offer is probably a blog series of its own. I agree with Keith that an email from a Managing Partner at a Tier 1 fund with all major term components written out is 99% as good as a termsheet. When it’s a junior partner.

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Term Sheet Due Diligence Reputation Early Stage 151

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. Brad Feld does the best blog term sheet series.

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Term Sheet Startup Angel Investor Wiki 41

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). Still, no one wants the terms to be so complex that the deal never closes. Term sheets are something you can’t avoid.

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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. Liquidation preference.

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

Both Sides of the Table

SEPTEMBER 30, 2015

What Can You Do if a VC Pulls Their Term Sheet? A term sheet is not a legally binding document. So if you’re a VC – you better have a pretty damn good reason for pulling out of deal after offering a term sheet. I was asked to answer this exact question on Quora and I did so some time ago.

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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. Liquidation preference. Marty Zwilling.

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

Startup Professionals Musings

JANUARY 24, 2021

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. Startup equity investments imply a long-term business relationship, lasting an average of five years.

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Technical Review Due Diligence Term Sheet Bankruptcy 379

Genuine VC

APRIL 29, 2013

all talk about the best way for entrepreneurs to optimize their fundraising process with the end-goal of receiving a term sheet. It’s often spoken as if the second that magical term sheet document is in hand, the process is over. Agreement of key terms between entrepreneur + VC firm. How can this situation happen?

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Term Sheet Valuation Partner Conversion 150

VC Cafe

AUGUST 11, 2022

A bond between a founder and investor is a commitment for a long term relationship – that’s why it is important to have the right partners on your side. If you agree that the top founders are likely to receive multiple term-sheets, then the importance of founder-investor fit increases. Personal fit.

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Startup Professionals Musings

APRIL 18, 2021

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. Remember, once investors contribute money to a company, a long-term relationship is created.

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Technical Review Due Diligence Term Sheet Angel Investor 380

Startup Professionals Musings

NOVEMBER 7, 2021

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. The SEC and local law enforcement agencies can’t help you much with foreign scams.

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Technical Review Due Diligence Non-disclosure Agreement Term Sheet 371

Feld Thoughts

NOVEMBER 7, 2011

For some time Jason and I have felt that VC’s have had an unfair advantage when it comes to understanding term sheets. So a few years back we wrote a whole series of blog posts (the Term Sheet series ) which became the basis for the book Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist.

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Ben's Blog

JUNE 22, 2019

a16z Managing Parter Scott Kupor’s new book, Secrets of Sand Hill Road , is a guide to engaging with and understanding VC that covers everything from terminology and term sheets to the fundraising process, governance, and more. In this video, …

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Term Sheet Government Video Management 58

Gust

OCTOBER 17, 2011

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. Liquidation preference.

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Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

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. I turned them down. No gotchas.

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Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Genuine VC

OCTOBER 2, 2012

After completing a long process identifying the right venture firms to pitch, running an exhaustive fundraising process, finding a mutual fit, and successfully negotiating terms… at last, the term sheet is signed. The two- to six- week time between the signing of the term sheet and closing is “venture limbo.”

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Term Sheet Founder Vesting Due Diligence Syndicate 162

Mucker Lab

JUNE 23, 2014

There is no word more sacred and yet over-used than “term sheet” in the entrepreneurial circle. The pursuit of the mythical VC term sheet has blinded entrepreneurs from the real goal of building a business: revenue, customers, users, engagement and retention. It’s validation. Continue at Techcrunch. Venture Creation'

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YFS Magazine

OCTOBER 8, 2016

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

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Term Sheet Startup Venture Capital Finance 112

Mucker Lab

FEBRUARY 24, 2021

When meeting with founders, we often find ourselves answering questions about what to expect with our diligence process and timeline between the first conversation and a term sheet. Today, Emotive announces their $50M Series B closed just 7 months after to accelerate growth after a transformative year for eCommerce brands.

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Seed Stage Term Sheet eCommerce Technical Review 135

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.

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Term Sheet Technical Review Due Diligence Venture Capital 197

Both Sides of the Table

SEPTEMBER 25, 2010

Legal costs of early stage financing should be cheap – this is one of the final remaining arguments for convertible debt but even Paul acknowledges that this is no longer necessarily the case: “Different terms for different investors is clearly the way of the future. Markets always evolve toward higher resolution.

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Finance Term Sheet Technical Review Warrant 286

Berkonomics

MAY 15, 2014

A good example was during the negotiation of a term sheet. These usually involve a handful of angel investors, and a few entrepreneurs, who all want to build the very best term sheet for their exciting nascent enterprise. Very often, the initial opinions of the people around the table are radically different.

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Term Sheet Angel Groups Angel Investor Deal Structure 91

Feld Thoughts

DECEMBER 28, 2010

On the heels of all the noise around Groupon’s $ 100m financing at a $7.5b (billion) post valuation, I thought I’d put out a call for “old VC term sheets – prior to 1990.&#. The basis for the book comes from the Term Sheet series that Jason and I wrote on this blog in 2005.

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Term Sheet Search Finance Valuation 118

Startup Professionals Musings

SEPTEMBER 10, 2014

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. If all this checking sounds a bit paranoid and unnecessary, it may be time to take another look at some questionable investor practices and onerous term sheet requests.

Technical Review 257

Technical Review Due Diligence Term Sheet Offshore 257

Both Sides of the Table

AUGUST 28, 2012

The only real benefit of their having this information is in preparation for a term sheet. ” Heading into a Term Sheet – Final Due Diligence. Obviously once a partner seems inclined to work on a term sheet you can expect a proctology exam and this gets even more intrusive after the term sheet.

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Technical Review Due Diligence Term Sheet Cap Table 316

Both Sides of the Table

MARCH 3, 2012

Since I didn’t originally source the deal I let my co-investor set the terms and negotiate the deal with my consent. Had he not heard about our commitment it’s not clear whether he would be rushing to submit a term sheet. But for me I care too much about my long-term reputation. He has signed a term sheet.

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Term Sheet Silicon Valley Reputation Partner 356

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.

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Term Sheet Pre-Money Valuation Liquidation Preference Option Pool 64

The Startup Lawyer

APRIL 2, 2014

My firm and Tech Wildcatters are co-hosting a live mock Series A term sheet negotiation on April 25th from 1-3pm. The event will take place at Tech Wildcatters at 2700 Fairmount St in Dallas Texas. Brad Hunstable, founder and CEO of Ustream, will play the role of the startup founder and a “TBD” VC will […].

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Term Sheet Dallas Cofounder Texas 71

NZ Entrepreneur

AUGUST 4, 2021

Lead investors and term sheets. Those investors interested in becoming lead will issue what’s called a term sheet – this details the terms they’re willing to invest on. Those investors interested in becoming lead will issue what’s called a term sheet – this details the terms they’re willing to invest on.

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Technical Review Software Review Founder Due Diligence 61

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.

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Term Sheet Due Diligence Liquidation Preference Redemption 76

Early Growth Financial Services

MARCH 13, 2014

getting the first term sheet can be a critical milestone in nurturing a successful business. Things to keep in mind: Anticipate investors’ concerns and information requirements; Be aware of the pitfalls; remember that all agreements are Conditional, with the terms subject to change. What is a term sheet?

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Term Sheet Equity Valuation Founder 55

Hunter Walker

APRIL 20, 2014

And your term sheet waits at the bottom. Still lots of hard work and good fortune to close the deal, but your term sheet is right on the other side.' Now I want to spend a few paragraphs on framing the pitch — I call it The Belief Funnel. Do I Believe There’s a Market Here?

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Both Sides of the Table

JULY 29, 2010

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. Q: “If you have a term sheet on the table how should you leverage with other VCs?&#

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Venture Capital Term Sheet Valuation Stock Options 282

This is going to be BIG.

APRIL 13, 2022

Whenever I submit a term sheet, I always caveat it by saying the following: “This is the one time we’re completely misaligned. I’m incentivized to buy up as much of the company at as low a price as possible and you’re incentivized to sell as little of the company as possible by raising the price.”. Founders seem to get that.

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