Austin Startup

FEBRUARY 11, 2020

We’ve had the pleasure of working with DivInc in the past on Diversity, Equity, and Inclusion Challenges in Austin , Houston , and Dallas. Year-round Diversity, Equity, and Inclusion Summits are just one example of how we’re making Capital Factory more accessible. Submit your application Who can apply?

Houston 84

Houston Dallas Term Sheet Texas 84

Startup Company Lawyer

MARCH 14, 2010

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Scott Edward Walker

APRIL 26, 2016

Quora: “How much equity should I give to a niche celebrity who wants to join my pre-revenue startup?” Quora: “If a VC backs out of a signed term sheet, should the entrepreneur spread the word?” Quora: “How can I let my cofounders go?” ” [link]. ” [link].

Cofounder 40

Cofounder Term Sheet Equity Revenue 40

Feld Thoughts

OCTOBER 28, 2016

In addition to fixing some lingering errors, lousy grammar, and poor word choices, we founder a few more places to insert Oxford commas so Amy and Ryan would be happy. There are two new forewords – one from Fred Wilson at USV (the VC perspective) and one from James Park, CEO and co-founder of Fitbit (the entrepreneur perspective).

Term Sheet 70

Term Sheet Cofounder Venture Capital Equity 70

Both Sides of the Table

JUNE 5, 2015

” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. If you’re a solo founder and haven’t built out your team or engineers I’m likely to want 15+%. million and the founder starts thinking, “yeah, $3.5

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

Scott Edward Walker

SEPTEMBER 1, 2019

Based on the foregoing experience, I am providing three basic tips to founders in connection with doing deals. There is nothing that will give a founder more leverage in connection with any deal negotiation than creating a competitive environment. Tip #1 – Create a Competitive Environment. the money).

Founder 45

Founder Private Equity New York City Term Sheet 45

Hippoland

AUGUST 9, 2016

or “We want to co-lead if you find another co-lead!” Typically, a lead investor will want to do a priced equity round, so you can convert your convertible notes into this equity round. However, once you get a term sheet from a potential lead investor, you have a lot of leverage. are not in your round.

Lead Investor 48

Lead Investor Term Sheet Due Diligence Convertible Security 48

Both Sides of the Table

APRIL 14, 2012

But if you raise the money at the big price (or any price) please go in with the expectation that you are going to build a large, long-term business. You are either bought for stock or for equity. ” Getting a term sheet on the table is the second most sure way to get a potential acquirer to move faster.

Valuation 316

Valuation Balance Sheet Dilution Term Sheet 316

venturehacks.com

SEPTEMBER 22, 2011

The Equity Equation. As this nuclear winter of venture hacks continues, I thought you might enjoy our thoughts on Paul Graham’s The Equity Equation. ” Read the rest of The Equity Equation first; it is great. You have to pay market rates regardless of the equity equation. Venture Hacks Good advice for startups.

Equity 40

Equity Cap Table Valuation RSS 40

Both Sides of the Table

JULY 11, 2010

I’m surprised how few people talk about valuations, term sheet terms, how much to pay recruiters, etc. I once mentioned this idea to a fellow SoCal VC when I told him I wanted a CIC in LA and he said, “Co-location is dead. Uh, I guess he won’t be co-sponsoring a technology lab in LA with me then?

San Francisco 285

San Francisco Incubator Silicon Valley Startup 285

Startup Lessons Learned

JULY 26, 2011

But none of that is enough to get me to recommend this new book , co-authored with Jason Mendelson. And reading a term sheet has all the entertainment value of watching dried paint get even drier. For example, the right way to think about a term sheet is as a negotiation over just two things: economics and control.

Antidilution 148

Antidilution Term Sheet Silicon Valley Widget 148

ReadWriteStart

MAY 8, 2012

Gina Mancuso , Founder and CEO of LoveThatFit. Like most first-time entrepreneurs, we were so excited by our first term sheet — and scared we wouldn’t get another — that we came very close to accepting it, even though the investors weren’t the best fit. Avichal Garg , Co-Founder and CEO of Spool.

Cofounder 140

Cofounder Startup San Francisco Silicon Valley 140

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. Choosing your VC essentially as choosing a co-founder. They will be there long term, have significant equity and help making strategic decisions. Having a mentor really helps.

Venture Capital 109

Venture Capital Term Sheet Angel Investor Due Diligence 109

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. . To learn more about this space, I suggest join an online community I co-founded, PEVCTech. . In the private equity universe, most Partners have primary training as deal-makers, not as managers.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Hunter Walker

APRIL 27, 2014

We brief our major investors quarterly and decided to model our LP meeting after what “big funds” do, albeit with a few Homebrew flourishes :) Logistically this meant an afternoon session with presentations/Q&A then a dinner with founders/advisors. We love our founders. 2) Product Market Fit & Our Roadmap.

LP 97

LP Cofounder Term Sheet Valuation 97

The Startup Lawyer

AUGUST 22, 2011

This is something you might see in a late stage private equity financing with a company that has a history of generating revenue. The investor wants non-dilution rights because they are either really greedy or they don’t trust you to issue additional equity. What a deal — for the investor. Personal Guaranty.

Angel Investor 99

Angel Investor Dividend Dilution Cofounder 99

The Startup Lawyer

FEBRUARY 4, 2011

But before your startup signs up and cashes that $[XX,000] check, your startup’s co-founders should sit down and evaluate the incubator’s offer. If an incubator offers your startup $25,000 in exchange for 6% equity, the pre-money valuation is a whopping $391,667. Other incubators may want to set up an option pool.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Agile VC

FEBRUARY 28, 2012

If you and all the people around your startup (co-founders, advisors, existing investors) feel strongly that the company A) could benefit from additional equity capital at this time and B) you’ve accomplished value accretive milestones since your last round of funding, then it might make sense to talk with potential new investors.

Early Stage 100

Early Stage Syndicate Syndication Silicon Valley 100

Both Sides of the Table

SEPTEMBER 2, 2009

If a company has reached a level of success, has been around for a few years and you believe the company has potential to break out into a much bigger company then you should let the founders take money off of the table. Founders however are asked to take low salaries and never really get back the time they worked for free.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Steve Blank

FEBRUARY 26, 2020

What most founders don’t realize is: Every stage of a startup requires a different set of metrics and milestones and founder skills. Knowing these will help a founder position her pitch to get investors’ attention. Founders need to keep their eye on the prize — not just the next funding round. Business Model.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Reid Hoffman

JULY 27, 2021

As I discussed last week in the Greymatter podcast with my friend and Blitzscaling co-author Chris Yeh , I believe that a knowledge of philosophy is actually a great asset for entrepreneurs. As opposed to taking a potentially smart risk on equity). Like many first time founders, I ran over that landmine.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Reid Hoffman

JULY 27, 2021

As I discussed last week in the Greymatter podcast with my friend and Blitzscaling co-author Chris Yeh , I believe that a knowledge of philosophy is actually a great asset for entrepreneurs. As opposed to taking a potentially smart risk on equity). Like many first time founders, I ran over that landmine.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Eric Friedman

AUGUST 18, 2021

Dan is the co-founder of Standard Treasury, a Y Combinator backed company. He is also co-founder and Managing Partner of Deciens Capital, an early stage investment fund. I hope you take this as a term of endearment. Fred Ehrsam , his co-founder, is also incredible. On Sushi and VC. Everything we do.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Cracking the Code

JULY 5, 2016

PostoInAuto’s founder, Olivier Bremer, was terribly talented, but his business was not at a point where he could raise a significant investment. He was intrigued, so I connected him to BlaBlaCar’s founders who convinced him to join the adventure shortly after. Thus it is not only about the money.”

Italy 59

Italy Technical Review Germany Poland 59

Professor VC

JUNE 20, 2011

Since the iControl system chronicles all meetings, I was able to find the automatic picture snapped from my first meeting with the founders, Reza Raji and Chris Stevens on April 22, 2004. But of course, the model had us requiring only $10M equity to breakeven and to achieve $185M in revenues in 2008 (the magic Year 5 in all business plans).

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

grasshopperherder.com

SEPTEMBER 24, 2011

Piercing the Corporate Veil – Sweat Equity Consulting. « Thanks but No Thanks – Things to Avoid When Recruiting Co-founders Why is Cyber Squatter a Bad Word? But much like becoming a co-founder, getting paid sweat equity is essentially becoming an investor in the company. Jan 20 -->.

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41

Feld Thoughts

JULY 14, 2015

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

venturehacks.com

OCTOBER 21, 2010

Later that evening you review the term sheet from Blue Shirt. Reading on, the term sheet states, “The $8 million pre-money valuation includes an option pool equal to 20% of the post-financing fully diluted capitalization.&# Do you mean the shares go to the founders? Or we can just do 10% standard terms.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

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. In the case of startups the “buyer” is the VC looking to part cash for “purchasing” equity in your startup. Many founders don’t understand why inside rounds are so difficult.

Valuation 150

Valuation Down Round Startup Later Stage 150

www.currentlyobsessed.com

MAY 28, 2010

I have to admit, the light bulb didn’t go off for me until I was negotiating term sheets. The net effect was more money raised, higher valuation and the same percentage of equity sold. Read Terms that Hurt (Venture Hacks). Read more about deal math on Brad Feld’s blog. For example, liquidation prefs.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

SoCal CTO

JANUARY 5, 2011

Both Sides of the Table , July 22, 2010 An updated Digital Trends presentation - Jeff Hilimire , June 2, 2010 I do what I hate - Jessica Mah , January 7, 2010 Startup Equity Allocation - charliecrystle.com , January 11, 2010 When good investment decisions end up backing more women CEOs: Conversation with Cameron Lester at Azure Capital.

Silicon Valley 378

Silicon Valley Startup Term Sheet Venture Capital 378

techcrunch.com

SEPTEMBER 6, 2012

It consists of a standard term sheet, automatically generated closing documents, and tools to manage the process including electronic signatures, managing wire information, generating PDFs, and more. AngelList will then automatically generate a term sheet and closing documents. Crunchbase. ANGELLIST.

Term Sheet 70

Term Sheet San Francisco Technical Review Seed Stage 70

www.gabrielweinberg.com

OCTOBER 24, 2011

Your VC is essentially buying in as a co-founder. Would you chose a co-founder that sucks? They're going to be with me long-term. They have a significant equity stake and other significant terms. Like a great co-founder, they can also help me in strategic ways at the right time.

Venture Capital 90

Venture Capital Term Sheet Cofounder Partner 90

steveblank.com

JULY 8, 2011

I’d like to add [link] as a community for founders. I am not associated with the company. Reply Dave Jafari , on April 10, 2011 at 10:11 am said: Great list Steve. Reply Faren , on April 11, 2011 at 1:40 am said: Hi Steve, Thanks for adding my ipod, ipad and web wireframe template post to your list.

Software Review 110

Software Review Startup Silicon Valley Analytics 110

www.vccafe.com

MARCH 11, 2013

.” Hackernews list of “Tools of the Trade” for startups - includes over 150 SaaS tools used by startups, and over 150 comments with interesting insights from founders. YCombinator Series AA Equity Financing Documents. WSGR Term Sheet Generator. Orrick, Herrington Term Sheet Generator.

Software Review 53

Software Review Technical Review Startup 53