article thumbnail

5 Things To Consider Before Selling To A Private Equity Firm

YoungUpstarts

by Adam Coffey, author of “ The Private Equity Playbook ” . You speak to trusted friends and personal advisors about how you should go about doing this (perhaps your lawyer or accountant), and before you know it, you stumble upon an important player in the private equity game: the investment banker.

article thumbnail

Keep Term Sheets Simple for Quicker Cash to Spend

Startup Professionals Musings

It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Define equity type. Entrepreneurs sometimes assume an initial agreement with an Angel is a commitment, so they start spending before any money is received.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

That convert you raised last year is a part of your cap table

VC Adventure

When it comes to convertible debt, I’ve had a few instances recently where “out of sight, out of mind” has created some misunderstandings around deal structures. Not necessarily a bad deal, but if you didn’t have that in your head you’re setting yourself up for a big surprise.

article thumbnail

A Primer on Angel Investment ‘Simple Term Sheets’

Startup Professionals Musings

It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Define equity type. Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received.

article thumbnail

Keep Term Sheets Simple for Quicker Cash to Spend

Gust

It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Define equity type. Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received.

article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

In case it isn’t clear by now, angel investors aren’t in the business of making risky early stage investments in order to earn 6% interest on their money, or even 10%— the upside is all in conversion to equity—so the interest rate isn’t a major point of negotiation. This paragraph is the heart of the whole deal.

Finance 79
article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part IV

Gust

For convertible notes, the only liquidity event we need be concerned with is an acquisition of the startup in the near future, before the maturity date; otherwise, the notes will convert to equity of one kind or another, and the eventual sale of that equity (in a public offering, acquisition, or private sale) is a different subject for another day.

Finance 79