View from Seed

APRIL 30, 2015

It can be lower cost and can either buy more time or accelerate growth. It’s generally got a lower cost compared to equity capital and can help support growth. In terms of negotiation, there are always hot buttons. Business model? What is it, and how should founders think about it? Traction and revenue?

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Startup Professionals Musings

JUNE 5, 2020

Bill was relentless in his focus on getting the software PC DOS project delivered, while continually challenging us with new business models. Tailor investor proposals and term-sheets. Most experts agree that acquisition of a new customer costs six times retaining existing customers.

Entrepreneur 307

Entrepreneur Cofounder Term Sheet Acquisition 307

Both Sides of the Table

DECEMBER 17, 2009

Ability to Pivot – I don’t like to invest in people that I’ve never met before who come through my office wanting to have a term sheet within 30 days. Yes, there is the mythical company you all heard about that walked into Sequoia and had a term sheet 24 hours later. They were product and cost focused.

Entrepreneur 291

Entrepreneur Term Sheet Early Stage Affiliate 291

ReadWriteStart

JUNE 1, 2020

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. For these businesses, it is imperative to get funding from the start without which the company cannot be set up.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

View from Seed

AUGUST 17, 2021

I was speaking to the former CFO of one of our most valuable portfolio companies the other day, and she recounted how this company once pitched 70 investors to barely get a term sheet. The cost of being incorrect becomes magnified as one has more than just capital to lose.

IRR 205

IRR Dilution Founder Portfolio 205

Both Sides of the Table

OCTOBER 19, 2009

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. Distributed version control model – first in the industry like ours and we are filing patents. Page 4: Business Model.

Venture Capital 274

Venture Capital Term Sheet San Diego Viral 274

View from Seed

AUGUST 17, 2021

I was speaking to the former CFO of one of our most valuable portfolio companies the other day, and she recounted how this company once pitched 70 investors to barely get a term sheet. The cost of being incorrect becomes magnified as one has more than just capital to lose.

IRR 156

IRR Dilution Founder Portfolio 156

View from Seed

AUGUST 17, 2021

I was speaking to the former CFO of one of our most valuable portfolio companies the other day, and she recounted how this company once pitched 70 investors to barely get a term sheet. The cost of being incorrect becomes magnified as one has more than just capital to lose.

IRR 136

IRR Dilution Founder Portfolio 136

Startup Professionals Musings

MAY 15, 2016

Bill was relentless in his focus on getting the software PC DOS project delivered, while continually challenging us with new business models. Tailor investor proposals and term-sheets. Most experts agree that acquisition of a new customer costs six times retaining existing customers.

Cofounder 120

Cofounder Term Sheet Acquisition Metrics 120

Startup Professionals Musings

MAY 9, 2015

Bill was relentless in his focus on getting the software PC DOS project delivered, while continually challenging us with new business models. Tailor investor proposals and term-sheets. Most experts agree that acquisition of a new customer costs six times retaining existing customers.

Cofounder 120

Cofounder Startup Term Sheet Acquisition 120

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. We make fast, data-driven credit decisions for these types of businesses and show Founders how the math/ROI works. Repaid 12-36 months with ability to prepay at reduced cost. Capital need of up to $1.5M

Revenue 60

Revenue Technical Review Software Review Equity 60

steveblank.com

JULY 8, 2011

– Mike [link] Reply Jeff Skinner , on May 24, 2010 at 9:28 am said: Steve, you don’t know me though I use your ‘Customer Development process’ video in my classes (Entrepreneurship at London Business School). Jeff skinner Faculty, London Business School. Can we touch base on this.

Software Review 110

Software Review Startup Silicon Valley Analytics 110

Startup Lessons Learned

MAY 31, 2019

Having been through the company-building process myself and after a decade in VC working with thousands of companies and negotiating hundreds of term sheets, I wrote this book to help demystify the process. Morgan credit card business to acquire tons of Square customers at a very low cost. No need to name names.

Lean 108

Lean Venture Capital Conversion IPO 108

K9 Ventures

APRIL 27, 2011

Their business model was to provide retailers with a new interface for shopping for soft goods — something that hasn’t changed a whole lot since Web 1.0. The day before we were supposed to sign the term sheet for the investment, Like.com sued Ugmode (the parent company of Modista.com) for patent infringement.

Software Review 134

Software Review Technical Review IP Finance 134

David Teten

DECEMBER 3, 2019

Technographics vendors such as Builtwith , Datanyze , HG Data , Stackshare, and Stacklist help CEOs identify the right tech platform on which to build their business; they’re also helpful for investors to due diligence a company’s tech stack choices. Capital has built a free online tool for founders to calculate their cost of capital.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

reidhoffman.org

NOVEMBER 12, 2013

But with so many investors still licking their wounds from the dot-com bust, many focused on proven business models, such as advertising or e-commerce. The general rule is one business model drives the business. As it happened, we did end up pursuing all three lines of business.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

SoCal CTO

JULY 13, 2010

The sunk costs trap. How-to learn about angel/vc term sheets - Gabriel Weinberg , June 28, 2010 I think every startup entrepreneur (and angel investor) should have a good understanding of financing term sheets. &# This exercise is meant to counter a number of common cognitive biases, such as: 1. Charles Darwin.

Cofounder 175

Cofounder Technical Cofounder Term Sheet Startup 175

www.vccafe.com

MARCH 11, 2013

tells you how much adwords cost. hire low-cost international engineering talent. outsourcing for small business. TechStars Model Seed Funding Documents â?? WSGR Term Sheet Generator. Orrick, Herrington Term Sheet Generator. Founders Institute Plain Preferred Term Sheet â?? SEMRush â??

Software Review 53

Software Review Technical Review Startup 53

Up and Running

JANUARY 7, 2020

As a result, we helped save millions of dollars in economic loss and firefighting costs for the nation. We ended up receiving a $5m term sheet from investors, dozens of government customers from all across the western United States, and several offers to acquire us for 10x the initial investment. Getting there was a struggle.

Product 82

Product Marketing Silicon Valley Term Sheet 82

Tim Keane

FEBRUARY 3, 2010

« Term-sheets and Valuations: Thinking about Negotiations | Main. | OVP Venture Partners) My own take on this is that a business plan with a bottom up forecast demonstrates an understanding of the potential market that investors love.    A bottom up market model goes something like this. Books I Like.

Marketing 116

Marketing Wisconsin Startup Angel Investor 116

Both Sides of the Table

FEBRUARY 14, 2016

When I was an entrepreneur there was no public information about how term sheets worked or how investors thought. For any future potential gain in more rational prices we have a lot more short-term pain helping our portfolio companies through the tough market. All of these are false. A reversion to the mean should be expected.

Valuation 150

Valuation Down Round Startup Later Stage 150

grasshopperherder.com

SEPTEMBER 24, 2011

As such, you should make sure to think of the proposals as an investor and get a reasonable term sheet. While it’s flattering that someone might think I’m capable of immediately grasping all the complexities of the business instantly, it’s a bit unrealistic. You don’t have a defensible business model.

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41

Life Beyond Code

SEPTEMBER 27, 2011

When we were looking to talk to investors, Sramana introduced us to multiple investors and acted as an advisor helping us to navigate complex term sheet clauses like tranche financing and liquidation preferences. At 1/12th the cost, 1M/1M provides far more value. Of 1M/1M he says, “The value of your program is amazing.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116