David Teten

AUGUST 19, 2019

Though RBI will displace some traditional equity VC, its much bigger impact will be to expand the pool of capital available for early-stage entrepreneurs. . However, only recently have early-stage companies started to use this model at any scale. . So what is Revenue Based Investing?

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Gust

SEPTEMBER 29, 2011

Given that convertible debt financing has become the de facto standard for small (<$1MM), early stage deals in recent years, I thought I would write a primer on the elements of a term sheet and definitive documents for entrepreneurs looking at the earliest stage financing rounds.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

Both Sides of the Table

SEPTEMBER 18, 2014

There are a million ways to do quick, easy, low-cost rounds with prices. There are a bunch of ways to offer cheaper pricing to people who commit early without notes. But founders these days seem strangely unfocused on finance and on terms that could hurt them even though we fought to the death about these same terms 10 years ago.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Both Sides of the Table

MAY 23, 2010

So by offering convertible debt you can avoid a price discussion in the same way that angel investors sometimes do in order to win competitive early-stage deals. It’s legitimate to ask for cost cutting if you think the bridge won’t last long enough at the current burn rate.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

K9 Ventures

MARCH 23, 2011

I may be well be in the minority in the Valley to think this way — especially so as a seed stage investor — but I have a strong preference for doing priced equity rounds for funding companies at any stage. For taking the risk of the financing not happening the note holder received a discount on the price of the round.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Gust

SEPTEMBER 17, 2014

There are a million ways to do quick, easy, low-cost rounds with prices. There are a bunch of ways to offer cheaper pricing to people who commit early without notes. But founders these days seem strangely unfocused on finance and on terms that could hurt them even though we fought to the death about these same terms 10 years ago.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

The Startup Lawyer

FEBRUARY 4, 2011

As equity in the company tends to be the currency of early stage startups, the startup should have a good foundation for assigning value in terms of equity. 8) Determine the Opportunity Costs. If not, the incubator is just a bridge financing to potentially nowhere for your startup. Conclusion.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105