David Teten

JANUARY 19, 2021

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. We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY. Yes, via conversion rights at a valuation cap.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

ReadWriteStart

JUNE 1, 2020

It is essential to understand the funding structure stated in your term sheet and the advantages and disadvantages it may have for your business. Under this category, you have the angel investors who would invest their own money and Venture Capital or VC firms, who manage funds aimed towards specific startup sectors and stages.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

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

Scott Edward Walker

JULY 7, 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 problem, of course, is that a so-called “walking dead” company rarely has the cash to buy-back the investors’ shares.

Term Sheet 49

Term Sheet Redemption Venture Capital Preferred Stock 49

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. Angel investing today is similar to where venture capital investing was in the mid-1980s.

Term Sheet 91

Term Sheet Angel Groups Angel Investor Deal Structure 91

This is going to be BIG.

SEPTEMBER 30, 2012

How else can you explain this headline matching a story about a professional social network still trying to explore revenues raising $17mm on an $80mm valuation? This is a company that, according to the article, got term sheets from half of the VCs that expressed interest in the company.

Venture Capital 114

Venture Capital Marketing Term Sheet Software Review 114

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

The Next Web

SEPTEMBER 13, 2013

Many Asian entrepreneurs tell me that they want to raise funds from Silicon Valley firms because they perceive the valuations to be higher. The venture capital landscape in Asia is varied and complex, as most of the active firms on the continent are concentrated in just a few areas. Finally, don’t over-optimize on valuation.

Asia 132

Asia Silicon Valley India Term Sheet 132

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

Gust

OCTOBER 25, 2014

The Business of Venture Capital. Raising Venture Capital for the Serious Entrepreneur. A Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Terms. Term Sheets & Valuations. A Line by Line Look at the Intricacies of Term Sheets & Valuations.

Term Sheet 132

Term Sheet Private Equity Exit Strategy Venture Capital 132

Altgate

DECEMBER 16, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Pre-Money Valuation vs Number of Founders Where Do Tech VCs Invest? One of the least understood of these key terms is the liquidation preference. and 2X had an average pre-money valuation of $8.6

Liquidation Preference 39

Liquidation Preference Pre-Money Valuation Term Sheet Valuation 39

VC Cafe

OCTOBER 27, 2011

The post “ What I learned from raising venture capital ” by Gabriel Weinberg , the founder of DuckDuckGo is one of them. WHAT TO DO WHEN RAISING VENTURE CAPITAL. Having multiple term sheets makes a difference. WHAT NOT TO DO WHEN RAISING VENTURE CAPITAL.

Venture Capital 109

Venture Capital Term Sheet Angel Investor Due Diligence 109

Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). If you don’t, please educate yourself on this site, Venture Hacks and the term sheet series by Brad Feld/Jason Mendelson, among other places.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Both Sides of the Table

APRIL 14, 2012

Did raising money at a $500 million valuation help secure the $1 billion deal? 99.9999% of you won’t be contemplating raising capital at $500 million any time soon or selling for a billion. My friend Christin Herron of Intel Capital weighed in on the issue. “Impending” valuation. Was this a good thing?

Valuation 316

Valuation Balance Sheet Dilution Term Sheet 316

Growthink Blog

JUNE 1, 2010

This Thursday, June 3rd at 12pm EST, we will be opening the doors to Venture Capital Bootcamp , our 4-week online venture capital coaching program. You’ll receive step-by-step training walking you through the entire venture capital process from start to finish.

Venture Capital 54

Venture Capital Due Diligence Term Sheet Angel Investor 54

The Next Web

FEBRUARY 27, 2014

George Deeb is the Managing Partner at Chicago-based Red Rocket Ventures , a startup consulting and financial advisory firm based in Chicago. One of the questions I get, more often than not, is what is the appropriate valuation of my business. Each industry typically has its unique valuation methodologies. Your industry.

Valuation 167

Valuation Forecast Seed Stage .Net 167

Growthink Blog

MAY 24, 2010

Next week, I'll be opening up registration for my new online training program, Venture Capital Bootcamp. Venture Capital Bootcamp is a four-week interactive e-class where I'll guide you step-by-step through the process of raising venture capital, from start to finish. Here's What's Included.

Venture Capital 54

Venture Capital Elevator Pitch Due Diligence Term Sheet 54

Professor VC

APRIL 1, 2010

One comment made by Jason was that angels tend to be less sensitive than VCs on valuation and can potentially make it difficult to get a venture financing done at acceptable valuation. We are typically looking at either smaller exits or require a lower valuation to get a reasonable step-up to a venture round.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

Genuine VC

JANUARY 13, 2014

Better to spend energy maximizing long-term valuation by building underlying business value rather than short-term optimizing a bidding process… so the intuitive thinking goes. Venture capital firms are comprised of people, which natural means that their idiosyncrasies seep into the process.

Term Sheet 206

Term Sheet Venture Capital Valuation Portfolio 206

Gust

DECEMBER 21, 2011

Valuations are generally higher in Silicon Valley; term sheets are different; capital sources are different; building a management team and Board of Directors requires a different strategy; and I’ve just begun to scratch the surface.

Silicon Valley 107

Silicon Valley Southern California Tucson Seattle 107

Steve Blank

NOVEMBER 12, 2009

But Cafepress’s most memorable moment was when the founders used a “Lessons Learned” VC pitch to raise their second round of funding and got an 8-digit term sheet that same afternoon. The VC firm delivered a term sheet for an 8-digit second round that afternoon. Here’s how they did it. And learn from it.”

Venture Capital 209

Venture Capital Silicon Valley RSS Hockey Stick 209

This is going to be BIG.

OCTOBER 10, 2014

That also includes 16 Brooklyn Bridge Ventures deals done and five agreed to term sheets. Well, if you group them all up, here''s what you get: Pre-Money Valuations (M). You wind up with about a four-ish valuation, mostly right around four, but with some outliers that bring up the average. Pre-Money Valuations (M).

Pre-Money Valuation 146

Pre-Money Valuation Dilution Valuation Term Sheet 146

Gust

SEPTEMBER 27, 2014

These can be based on things like location (some only invest in a particular country or state), industry (a Life Science fund is simply not going to invest in a new social network for real estate agents), or valuation (a seed fund will not usually invest in a company that is advanced enough to warrant a $10m pre-money valuation), etc.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Steve Blank

JANUARY 4, 2010

Staring at us in the board meeting were three term-sheets from brand name VC’s and an unexpected buy-out offer from Google. In fact, Google’s offer for $15 Million was equal to the highest valuation from the venture firms. Lets take venture capital and grow this thing into a real business.”.

Hockey Stick 276

Hockey Stick Venture Capital Startup Cofounder 276

Gust

SEPTEMBER 17, 2014

Me: So, you raised venture capital? Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

APRIL 3, 2010

This is part of my ongoing series on Understanding Venture Capital. I recently wrote a blog post on understanding how the size and age of a venture capital fund might affect you when you’re raising money. We used the Y Combinator open source term sheet. If you accept my terms you’re done.

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

Feld Thoughts

FEBRUARY 25, 2016

If you’ve never experienced a retrade, or don’t know what I’m talking about, it’s the situation when you have a firm deal agreed upon or a term sheet signed and are proceeding to closing a deal, when the investor (or acquirer) decides to change the terms of the deal.

Term Sheet 70

Term Sheet Reputation Valuation Acquisition 70

Scott Edward Walker

SEPTEMBER 1, 2019

For the bulk of my career, I have been representing startups and emerging-growth companies in seed financings, venture capital financings, mergers and acquisitions, and other transactions. Most founders get very excited when they receive a term sheet for a financing or an acquisition. the money).

Founder 45

Founder Private Equity New York City Term Sheet 45

Gust

OCTOBER 12, 2011

Last week , we took the plunge and began dissecting an example term sheet for a convertible debt financing round piece by piece. I’ll continue with more specific terms and wrap up next week with some thoughts about recent changes and trends for the future. First, a word about the maturity date.

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

Professor VC

APRIL 7, 2011

In a convertible note structure, Im penalized for increasing your valuation. Instead of getting a 2-3x multiple from seed to Series A, I get a discount off of the Series A, so Im better off financially with a lower valuation. You may say, if you are investing in the next facebook or google, why care about valuation? 2 weeks ago.

San Jose 36

San Jose Technical Review Angel Investor Valuation 36

Gust

OCTOBER 21, 2011

Readers joining this series in progress may find it helpful to download the sample term sheet from my firm’s website and review the earlier posts covering the basics. In Parts II and III, we looked at commonly used mandatory and voluntary conversion language in convertible notes. Most would agree this is not a fair outcome.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Pascal's View

AUGUST 21, 2011

Welcome to the latest passionate debate over the ‘valuation bubble or not?’ question in venture capital. This time, the debate centers on the “favored few” Social Media venture backed companies that have brought tremendous windfalls to a select group of venture funds and management teams, both pre- and post-IPO.

Valuation 50

Valuation Social Media Media IPO 50

Both Sides of the Table

FEBRUARY 25, 2010

We had many term sheets (it was 1999 and we had a pulse) and we were deciding which one to take. We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. We ended up agreeing a term sheet for $16.5 million at a $15 million pre-money valuation.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . Atlassian open-sourced their M&A term sheet , a very aggressive move which helps smooth the M&A process, by reducing the number of degrees of freedom in a negotiation.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Feld Thoughts

APRIL 29, 2015

Now that everyone is overly focused on unicorns, the headline number on the valuation (e.g. Company X raised Y at a valuation of Z from A, B, and C) has crept into the story on big rounds. in Funding: Here is the Valuation, Term Sheet and Why We’re Doing It. It’s what the press likes to write about (e.g.

Atlanta 70

Atlanta Valuation Term Sheet Finance 70

Professor VC

JULY 25, 2013

Mike Markkula presenting Steve Jobs with first investment in Apple I recently watched an excellent documentary on PBS, Something Ventured: Risk, Reward, and the Original Venture Capitalists. An entrepreneur received two Series A term sheets, one lead by an international investor and the other from SH.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

ReadWriteStart

SEPTEMBER 22, 2010

Now and then a polarizing topic will make its way through the venture capital industry and several prominent investor/bloggers will chime in with their collective opinions in quick succession. He adds that "10 million other things" were discussed at the meeting, including convertible notes, valuations and term sheets.

Silicon Valley 114

Silicon Valley San Francisco Angel Investor Term Sheet 114