Startup Professionals Musings

JANUARY 27, 2012

It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold. Outline multiple tranches.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 223

Gust

OCTOBER 21, 2011

To account for scenarios in which the startup is acquired before it has a chance to complete a priced equity financing round, most term sheets and deal documents contain a “ change in control ” provision. Suppose the notes converted as if the acquisition were an eligible financing round.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Startup Professionals Musings

SEPTEMBER 14, 2010

It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold. Outline multiple tranches.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Gust

OCTOBER 17, 2011

It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold. Outline multiple tranches.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158