Startup Professionals Musings

JUNE 29, 2012

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. Some startups do nothing to prepare for the due diligence process, assuming the people and business plan documents will speak for themselves.

Technical Review 245

Technical Review Due Diligence Term Sheet Startup 245

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. You can get a personal loan without a business plan. I have already uploaded a video on creating a business plan on my channel – [link].

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Both Sides of the Table

MAY 24, 2018

Usually after a Monday partner meeting you get a pretty strong: Yes, term sheet coming No, sorry we’re passing Maybe, we need to do more due diligence / analysis / work I always counsel founders that “good news comes early” so if you haven’t heard by Tuesday at noon chances are it wasn’t likely a clean “yes.”

Technical Review 314

Technical Review Due Diligence Partner Term Sheet 314

Startup Professionals Musings

JANUARY 17, 2015

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. In reality, it is nothing more than a final integrity check on all aspects of the business and the team.

Technical Review 120

Technical Review Due Diligence Startup Term Sheet 120

Both Sides of the Table

APRIL 13, 2011

It’s interesting that the question is pitch deck’s being obsolete versus business plans being obsolete. So very few investors want Business Plans any more. The following is a brief series of quotes from just ten of the approximately 30 different topics discussed in this incredible interview. Is that when it became big?

Technical Review 288

Technical Review Venture Capital Silicon Valley Software Review 288

Gust

NOVEMBER 11, 2011

In most of the events that I’ve participated in, that the appearance of a business plan contest is to some extent illusion. It’s not just a one-time pitch or plan contest. They’ve heard multiple pitches, poured over business plans, talked to customers, and looked at the legal work. Are they worth the risk?

Software Review 79

Software Review Term Sheet Due Diligence Angel Investor 79

Startup Professionals Musings

JULY 16, 2023

For these fees, they will develop a business plan, solicit investors, and negotiate term sheets to a closing. There is an upfront or monthly retainer, and maybe a closing fee, of at least several thousand dollars. In addition, they will likely take between 3% and 10% of any capital raised.

Early Stage 182

Early Stage Silicon Valley Private Equity Initial Public Offering 182

Startup Professionals Musings

MARCH 12, 2023

Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles. If your targeted business plan opportunity is not at least a billion dollars, most VCs won’t even be interested.

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

Startup Professionals Musings

OCTOBER 26, 2020

For these fees, they will develop a business plan, solicit investors, and negotiate term sheets to a closing. There is an upfront or monthly retainer, and maybe a closing fee, of at least several thousand dollars. In addition, they will likely take between 3% and 10% of any capital raised.

Silicon Valley 362

Silicon Valley Private Equity Initial Public Offering Term Sheet 362

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. I’m sure that happens.

Entrepreneur 291

Entrepreneur Term Sheet Early Stage Affiliate 291

Startup Professionals Musings

DECEMBER 28, 2010

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. Some startups do nothing to prepare for the due diligence process, assuming the people and business plan documents will speak for themselves.

Technical Review 229

Technical Review Due Diligence Term Sheet Angel Investor 229

Tim Keane

MAY 16, 2010

A philosophy of valuations and term-sheets. Several months ago, I'd posted an article about term-sheets.  A Philosophy of Valuation and  Term Sheet Calcs   the accompanying spreadsheet.  A philosophy of valuations and term-sheets. « Do we really need this help?

Term Sheet 60

Term Sheet Valuation Wisconsin Angel Investor 60

Up and Running

JANUARY 26, 2012

You then need to submit a business plan (or executive summary) to them so they can assess the opportunity with more context (ideally you’ll have a warm introduction to these people). Finally you need to be very clear on the terms of the investment i.e. above and beyond the headline rates.

Term Sheet 94

Term Sheet Exit Strategy Software Review Early Stage 94

Startup Professionals Musings

JUNE 6, 2022

Thus it is incumbent on every potential startup investor to ask for and read their business plans, current financial statements, and investor presentations. Many negotiate a board seat for themselves as part of the investment term sheet. Think long-term. Invest locally and take an active role.

Liquidity Event 300

Liquidity Event Angel Investor SEC Accredited Investor 300

Startup Professionals Musings

JUNE 13, 2020

Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles. If your targeted business plan opportunity is not at least a billion dollars, most VCs won’t even be interested.

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314

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. We have also been very busy with our next release, which is due out by December 11th (but I’ll save that for a different post). That changed very quickly.

Venture Capital 274

Venture Capital Term Sheet San Diego Viral 274

Up and Running

MAY 11, 2016

When it comes to starting a business, there’s no shortage of information on how to do it; from writing a business plan to applying for an SBA-guaranteed loan, just about everything has been covered. That is, until now.

Technical Review 60

Technical Review Term Sheet Startup Due Diligence 60

Austin Startup

NOVEMBER 12, 2017

In that case, you are not making a specific offer; you are soliciting a terms sheet. Those investors will have terms sheets at the ready, and most of them will have some pesky MBA’s who will grind through all your assumptions, models, and market data.

Term Sheet 48

Term Sheet Technical Review Due Diligence Merger 48

Reid Hoffman

JULY 27, 2021

For example, one of the common tools for teaching entrepreneurship at the business school level is the business plan competition. The problem is that these competitions seldom produce massively successful businesses. It’s not like after completing the class I was prepared to negotiate a term sheet.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Reid Hoffman

JULY 27, 2021

For example, one of the common tools for teaching entrepreneurship at the business school level is the business plan competition. The problem is that these competitions seldom produce massively successful businesses. It’s not like after completing the class I was prepared to negotiate a term sheet.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Startup Professionals Musings

OCTOBER 12, 2015

While the majority of investors are looking for a win-win deal, there are investors who like to prey on entrepreneurs who have little financial experience, don’t read the term sheet or are simply desperate for a deal. Be wary if the term sheet is a document longer than your business plan.

Due Diligence 120

Due Diligence Term Sheet Entrepreneur Angel Investor 120

Startup Professionals Musings

SEPTEMBER 6, 2019

Thus it is incumbent on every potential startup investor to ask for and read their business plans, current financial statements, and investor presentations. Many negotiate a board seat for themselves as part of the investment term sheet. Think long-term. Invest locally and take an active role.

Liquidity Event 224

Liquidity Event SEC Entrepreneur Accredited Investor 224

Up and Running

MAY 18, 2016

This book will teach you how to test your vision continuously, and adapt and adjust your plans so that you don’t become part of the business failure statistics. This is the planning methodology of choice for startups worldwide.” ” Lean Business Planning: Get What You Want From Your Business.

Startup 80

Startup Venture Capital Angel Investor Lean 80

The Next Web

AUGUST 26, 2012

The backbone of your technology company revolves around a well-organized, up-to-date, specific and documented vision, brand-key, business plan, intellectual property rights, contracts, financial administration, NDAs and bylaws it can rely on. Make sure you check and understand the term sheet and overall deal.

Bankruptcy 121

Bankruptcy Technical Review Intellectual Property Due Diligence 121

Gust

SEPTEMBER 27, 2014

One excellent way to do this (with a good bit of help from the experts), is to create a draft business plan using LivePlan from Palo Alto Software. Gust is used by over 1,000 angel investment groups, accelerators, business plan competitions and support programs to manage their applications.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Steve Blank

NOVEMBER 5, 2009

Product Development – Getting Funded as The Goal In a traditional product development model, entrepreneurs come up with an idea or concept, write a business plan and try to get funding to bring that idea to fruition. The goal of their startup in this stage becomes “getting funded.” Just as a refresher. Get back up and running.

Customer Development 262

Customer Development Developer Customer Silicon Valley 262

Startup Professionals Musings

AUGUST 2, 2014

Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles. If your targeted business plan opportunity is not at least a billion dollars, most VCs won’t even be interested.

Angel Investor 266

Angel Investor Entrepreneur Venture Capital IRR 266

Startup Professionals Musings

SEPTEMBER 16, 2017

Thus it is incumbent on every potential startup investor to ask for and read their business plans, current financial statements, and investor presentations. Many negotiate a Board Seat for themselves as part of the investment Term Sheet. Invest local and take an active role.

Liquidity Event 184

Liquidity Event SEC Accredited Investor Angel Investor 184

Startup Professionals Musings

SEPTEMBER 10, 2013

For these fees, they will develop a business plan, solicit investors, and negotiate term sheets to a closing. There is an upfront or monthly retainer, and maybe a closing fee, of at least several thousand dollars. In addition, they will likely take between 3% and 10% of any capital raised.

IPO 205

IPO Silicon Valley Private Equity Initial Public Offering 205

www.paulgraham.com

APRIL 28, 2010

One experienced CFO said: The better ones usually will not give a term sheet unless they really want to do a deal. As oneVC told me: If you were talking to four VCs, told three of them that you accepted a term sheet, and then have to call them back to tell them you were just kidding, you are absolutely damaged goods.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Startup Professionals Musings

JUNE 5, 2016

Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles. If your targeted business plan opportunity is not at least a billion dollars, most VCs won’t even be interested.

Angel Investor 120

Angel Investor IRR Valuation Startup 120

Up and Running

MARCH 29, 2017

I did my best to make that moment happen: I had two successes under my belt, a functioning product, a freshly-minted MBA from a top business school, and an innovative business model—we were going to give away free accounting software to small businesses and make money by helping them manage their cash flow problems.

Term Sheet 60

Term Sheet Venture Capital Liquidation Preference Valuation 60

Startup Professionals Musings

NOVEMBER 1, 2013

Thus it is incumbent on every potential startup investor to ask for and read their business plans, current financial statements, and investor presentations. Many negotiate a Board Seat for themselves as part of the investment Term Sheet. Invest local and take an active role.

Accredited Investor 219

Accredited Investor Liquidity Event SEC Stock 219

Startup Professionals Musings

JANUARY 22, 2011

For these fees, they will develop a business plan, solicit investors, and negotiate term sheets to a closing. There is an upfront or monthly retainer, and maybe a closing fee, of at least several thousand dollars. In addition, they will likely take between 3% and 10% of any capital raised.

Silicon Valley 211

Silicon Valley Private Equity Initial Public Offering Startup 211

Startup Professionals Musings

AUGUST 3, 2015

Registered investment brokers, who assist in business plan and presentation preparation, as well as sourcing investors, may expect a $10,000 retainer per month, as well as 5 percent of investor money raised. Thus it always costs money to raise money, so plan ahead.

Cost 120

Cost Angel Groups Due Diligence Silicon Valley 120

K9 Ventures

APRIL 27, 2011

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. They had a small amount of cash in the bank from having won two business plan competitions that they used to finance the company to date.

Software Review 134

Software Review Technical Review IP Finance 134

steveblank.com

JULY 8, 2011

Reply You don’t need a business plan yet: 7 ideas for Customer Development « Information Maven: Greg Meyer , on May 22, 2011 at 7:37 am said: [.] further along in the information you’ll need to build your business plan. Steve Blank lists some great tools for startups that will help you in this [.]

Software Review 110

Software Review Startup Silicon Valley Analytics 110