article thumbnail

Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

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
article thumbnail

Startup Due Diligence Is Not a Mysterious Black Art

Startup Professionals Musings

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.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

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. FLEXIBLE VC VS. OTHER VENTURE CAPITAL MODELS.

article thumbnail

Understanding the Dreaded Investor Due Diligence

Startup Professionals Musings

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.

article thumbnail

Startup Due Diligence Is Not a Mysterious Black Art

Gust

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.

article thumbnail

Master of Customer Acquisition, Matt Coffin, On Startups …

Both Sides of the Table

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.&#. I figured if Matt was on the verge of bankruptcy and one mentor changed his trajectory, what if we had a formalized, community-wide program?

article thumbnail

Venture Capital Red Flag Checklist 

abovethecrowd.com

In his recent bankruptcy proceeding filing, John Ray III, the new CEO and Chief Restructuring Officer at FTX, minced no words: I have over 40 years of legal and restructuring experience. The post Venture Capital Red Flag Checklist appeared first on Above the Crowd. No investor wants to lose a deal over an audit requirement.