Haystack

JULY 4, 2019

Would I hope all founders updated their investors, even if briefly? If a founder I’ve backed simply sends 5-7 bullet points per month with some key stats, metrics, and requests for specific connections and help, then over time I follow their “story” and it becomes a part of my daily vocabulary. Yes, of course.

Early Stage 167

Early Stage Deal Flow Finance Metrics 167

Hippoland

AUGUST 21, 2016

Portfolio founder: There’s an investor who wants to invest about $500k. Portfolio founder: That’s the problem. I have this conversation all the time with portfolio companies. Ask for references — you should speak with existing portfolio founders if it looks like the prospective investor is really serious about signing your deal.

Technical Review 48

Technical Review Due Diligence Silicon Valley Portfolio 48

Hunter Walker

JULY 19, 2017

As Tomio Geron wrote in this week’s WSJ , At Homebrew , we don’t currently use Scouts, but generally welcome any investors into syndicates who can provide value to the founders. That said, I’ve got three questions that I recommend founders ask any angels participating in their rounds. Are you a Scout?

Founder 69

Founder Silicon Valley Cap Table LP 69

Startup Company Lawyer

AUGUST 31, 2012

.” However, I believe that YC realizes that having debt outstanding that may need to be repaid is not a good situation for founders. There are some features in the sample documents that I like — such as the conversion discount being paid in common stock — that are in the form of convertible debt documents used by YC.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

OnlyOnce

APRIL 27, 2021

Here are four tough conversations you may have to have along the way, with some suggestions on how to navigate them. All of these conversations need to come with a point of view of why independence and diversity matters to your company, a lot of empathy, and appreciation for the value the person brings to the table.

Vesting 48

Vesting Cofounder Startup Term Sheet 48

K9 Ventures

MARCH 23, 2011

An uncapped convertible note misaligns the incentives between the founders and the investors/note holders. The founders’ interest is to maximize the valuation of the company at the time of a follow-on financing, thereby minimizing founder dilution. Here are the reasons why I don’t like convertible notes: 1.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Hunter Walker

JANUARY 20, 2015

Despite being the smallest line on a founder’s cap table, we were often one of the first calls they made when confronted with a problem to solve or opportunity to consider. If you just need the money, stick unknown angels in an AngelList Syndicate so they have more limited information rights. That’s a good thing.).

Cap Table 48

Cap Table Warrant Syndicate Syndication 48