Startup Professionals Musings

SEPTEMBER 14, 2010

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from an angel, either. Your best strategy is to bring your own term sheet to the negotiation as a starting point. Anti-dilution protection. Marty Zwilling.

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

Gust

OCTOBER 17, 2011

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from either. Your best strategy is to bring your own term sheet to the negotiation as a starting point. Anti-dilution protection.

Term Sheet 158

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

Both Sides of the Table

AUGUST 28, 2012

Since the game of competing is always “where the puck is going” you can have a detailed conversation without completely letting on what your future strategy will be. The only real benefit of their having this information is in preparation for a term sheet. ” Heading into a Term Sheet – Final Due Diligence.

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Technical Review Due Diligence Term Sheet Cap Table 316

View from Seed

MARCH 11, 2020

Conversely the VC is able to benchmark the maturity of your data and analytics function against other similarly staged companies as well. Having conversations with your existing investors. There is obviously going to be some disagreement here about what appropriate expectations are. Meeting with other members of your team.

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Technical Review Due Diligence Term Sheet Seed Stage 279

Both Sides of the Table

MAY 9, 2018

You race back to the office to tell everybody how well it went and you wait for the follow-up call to have a partners’ meeting or talk about term sheets or at least dip into due diligence. The assistant tried to end the meeting twice but was shoooshed away. What do I do now? Remind Me Why I Love You?

Software Review 381

Software Review Churn Rate Due Diligence New York 381

The Startup Lawyer

JANUARY 10, 2011

There’s a lot of advice about (1) how to attract VCs, and (2) how to negotiate a venture capital term sheet. Both sets of advice tend to ignore the gap between an investor’s expression of investment interest and your startup’s receipt of the term sheet.

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Term Sheet Pre-Money Valuation Liquidation Preference Option Pool 64

Scott Edward Walker

SEPTEMBER 14, 2011

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. The Investors’ Right to Walk VC Term Sheets Are Non-Binding. VC Term Sheets Are Conditional.

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Term Sheet Due Diligence Liquidation Preference Redemption 76

The Startup Lawyer

AUGUST 24, 2010

Just like the preferred equity financing process, the convertible debt financing process can start with a term sheet, rather than a full set of financing documents. Here are terms that are typically found in a convertible note term sheet: Amount of the Offering : How much capital can the startup raise via the convertible debt offering?

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Term Sheet Pre-Money Valuation Liquidity Event Warrant 62

Agile VC

MAY 26, 2011

This also appears as a guest post at Fortune’s Term Sheet. Not long after the product launch we began the initial conversations with VCs for a Series A round. The terms and valuation for both offers were comparable and when the team debated which path to choose, we all agreed both firms would have made good partners.

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Term Sheet Silicon Valley Technical Review Social Network 178

View from Seed

FEBRUARY 12, 2020

If you have a term sheet in hand or know for a fact that you are about to get one, you can be pretty transparent and say that you are late in the process and are looking to make a decision by X date. If you don’t have a term sheet, my general approach is to communicate that you are early in the process.

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Term Sheet Burn Rate Founder Partner 364

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

View from Seed

MAY 17, 2019

The venture fundraising process for founders has a certain rhythm to it, and so a lot can be read into the timing and pacing of the conversations. After a term sheet is signed, but before closing, I call the “venture limbo” period. The job of the entrepreneur is to ensure those circumstances don’t change too much in the interim.

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Term Sheet Reputation Security Conversion 149

Scott Edward Walker

JULY 7, 2011

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. Moreover, there are significant restrictions under applicable State law regarding redemptions if the company does not have the legally-available capital.

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Term Sheet Redemption Venture Capital Preferred Stock 49

Both Sides of the Table

OCTOBER 19, 2014

and had several phone conversations after that. By September 26th we had submitted a term sheet which was signed on October 4th and financing was closed in less than 30 days. We met in August (so much for VCs taking the Summer off!)

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Technical Review North America Los Angeles Cofounder 373

View from Seed

FEBRUARY 23, 2021

The classic scenario is when a VC has a signed term sheet to lead a round, but has left room open for another meaningful investor. In other words, by the time the term sheet is signed, everyone else in the syndicate is already known and have been talking to the founder already.

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Syndicate Syndication Term Sheet Cofounder 207

Both Sides of the Table

FEBRUARY 14, 2010

It becomes a large part of the conversation in our partners’ meeting afterward. A large part of our post meeting conversation was how we felt the individual seemed to be of low integrity. Another CEO presented to us from a company that was growing at a tremendously fast clip.

Technical Review 284

Technical Review Due Diligence Entrepreneur Early Stage 284

David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. As a result, unfounded hockey-stick graphs and unicorn promises give way to financial fluency, realistic expectations, frank conversations about what a business can credibly achieve, and transparency. . Flexible VC: Compensation-based.

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Cofounder Technical Review Equity Dividend 78

Version One Ventures

JULY 20, 2017

Needless to say, Boris and I were super excited when Mike and David received a term sheet from Bessemer. With great new traction and product market fit, the Ada team came out to SF to raise their Seed round in October 2016.

Artificial Inteligence 151

Artificial Inteligence Silicon Valley Stealth Term Sheet 151

Austin Startup

JULY 22, 2017

The best way to reach me is by email, but if you don’t have my address, connect with me via: LinkedIn Twitter using @ssaustin #ATXDiversityPledge The Austin Startup Diversity and Inclusion Pledge was originally published in Austin Startups on Medium, where people are continuing the conversation by highlighting and responding to this story.

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Austin Angel Investor Startup Term Sheet 54

Both Sides of the Table

MAY 13, 2018

If an investor isn’t engaging then they’re not suddenly going to get a term sheet. If we feel a mutual connection then my goal is to make your life easier by offering you a term sheet before you’re even raising and I’ll spend the time and effort trying to prove that it isn’t worth running a process.

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Term Sheet Due Diligence Campaign Sales 332

Both Sides of the Table

MARCH 8, 2018

In 2017 we began inserting an “Inclusion Clause” into our term sheets because we believe that the culture one establishes at the earliest stages of one’s business will set out the course of how it will grow and develop. We believe that diverse teams produce diversity of thought and that this leads to better decisions and outcomes.

Term Sheet 284

Term Sheet Los Angeles Open Source Portfolio 284

Austin Startup

NOVEMBER 12, 2017

Certainly there’s some preparatory questioning and analysis and some basic trust building, but you run the risk of losing a deal if you keep having conversations and are tardy in getting to a very specific ask. In that case, you are not making a specific offer; you are soliciting a terms sheet.

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Term Sheet Technical Review Due Diligence Merger 48

View from Seed

MAY 31, 2023

Inspired by Mike’s reflection, and to better understand an entrepreneur’s perspective, I set out to have conversations of my own with founders who have completed the rebound. The blog was authored anonymously, and Mike revealed his authorship years later in Professor Tom Eisenmann’s Entrepreneurial Failure class at Harvard Business School.

Silicon Valley 156

Silicon Valley Cofounder Term Sheet Founder 156

Both Sides of the Table

MAY 21, 2018

I told him, “I know we don’t yet have a term sheet so you feel you need to listen to everybody’s request. But imagine you were expecting two term sheets imminently. I told him he shouldn’t bother and that it was likely a junior person at the firm whose job is was to find holes in the data / narrative.

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Term Sheet Later Stage Demand Email 217

YoungUpstarts

OCTOBER 28, 2015

Investors typically negotiate from a term sheet, which if not handled properly can create problems that can hurt or kill the startup’s chances when they do their Series A round of funding. a SAFE or KISS) provide a much simpler transaction with less terms to negotiate. Debt or convertible securities (e.g.,

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Convertible Security IP Technical Review Software Review 100

Both Sides of the Table

MARCH 23, 2015

My initial blogging inspiration was actually Brad Feld because as an entrepreneur I always wanted to work with Brad after reading his advice on term sheets and the like. I have been blogging for years – even before BothSidesofTheTable. But Fred got me to see a broader perspective. He says, “It’s like Venus Fly Paper.

Los Angeles 150

Los Angeles Silicon Valley Term Sheet Video 150

Austin Startup

JULY 22, 2021

Pitch for a Fast Track into Capital Factory with a $100,000 Investment was originally published in Austin Startups on Medium, where people are continuing the conversation by highlighting and responding to this story. Apply now to be one of five teams selected to pitch. Female Founders!

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San Antonio Dallas Houston Founder 107

This is going to be BIG.

OCTOBER 12, 2020

One just got a seed term sheet for twice the valuation I put in at in the pre-seed and the other is doing $200k/month in revenue. I watched in June as VCs tiptoed into race conversations in a way that revealed their discomfort, fear, and unfamiliarity around doing hard work and taking risks in this area.

LP 136

LP Technical Review Software Review Valuation 136

Hunter Walker

JANUARY 5, 2014

Stage 1 : Either Satya or I are meeting the founders, usually solo, giving them an overview of Homebrew and learning about their startup through direct conversations, using the product (whatever stage it’s at) and doing some background on their industry (if it’s an area new to us). Satya and I use a simple three stage system.

Software Review 102

Software Review Balance Sheet Cofounder Technical Review 102

Austin Startup

DECEMBER 15, 2020

Submit your application VIP Accelerator Application Black founders can pitch for a $100,000 investment was originally published in Austin Startups on Medium, where people are continuing the conversation by highlighting and responding to this story.

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Founder Dallas Houston Term Sheet 98

Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago.

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Venture Capital Liquidation Preference Valuation Term Sheet 417

Gust

SEPTEMBER 29, 2011

For a traditional VC financing round structured as a sale of preferred stock, the best resources I can recommend are the Term Sheet Series by Brad Feld and Jason Mendelson and Startup Company Lawyer by Yokum Taku. I’ve posted a sample convertible note term sheet on my website.) There are two principal reasons.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

Austin Startup

FEBRUARY 11, 2020

The best opportunity and pitch will receive: - Admission to Capital Factory’s state-wide VIP Accelerator - $100,000 cash investment on a SAFE or Convertible Note using Capital Factory’s term sheet - Special access to an A-List of Texas’ top entrepreneurs who add value far beyond the money you received - Automatic acceptance into our accelerator (1% (..)

Houston 84

Houston Dallas Term Sheet Texas 84

Austin Startup

FEBRUARY 11, 2020

The best opportunity and pitch will receive: - Admission to Capital Factory’s state-wide VIP Accelerator - $100,000 cash investment on a SAFE or Convertible Note using Capital Factory’s term sheet - Special access to an A-List of Texas’ top entrepreneurs who add value far beyond the money you received - Automatic acceptance into our accelerator (1% (..)

Houston 84

Houston Dallas Term Sheet Texas 84

Scott Edward Walker

JUNE 9, 2019

Over the past few weeks, two of my clients have received financing term sheets in which the investors requested super pro rata rights. Introduction. Accordingly, I thought it would be helpful for founders to discuss these rights and to point out the problems they create for startups. Pro Rata Rights.

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Preferred Stock Term Sheet Dilution Stock 56

Genuine VC

JULY 6, 2011

Even the next few successive conversations usually don’t move too much faster after that – if there’s interest, a VC partner will ping his network to gut-check his instincts as a diligence item and begin to socialize the opportunity within his firm, both of which (usually) take time.

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Term Sheet Deal Flow Venture Capital Conversion 150

View from Seed

DECEMBER 6, 2018

So this notion of “doing work” (and friction towards it happening) yields a couple takeaway for entrepreneurs: In most cases, progression towards a potential term sheet isn’t really happening until a VC partner is doing work. The post VC’s Doing the Work to Build Investment Conviction appeared first on NextView Ventures.

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Due Diligence Term Sheet Seed Stage Partner 120