My Venture Covenant With Entrepreneurs

VC Confidential

The post My Venture Covenant With Entrepreneurs appeared first on Something Ventured. There is a false dogma around the VC/Entrepreneurship relationship…supported by bad behaviors on both sides. You feel a need to manage your investors & board, to not show weakness and present to us.

What is an entrepreneur to do when restrictive covenants become restrictive

Non-Linear Growth

Restrictive covenants are standard features of venture capital, growth equity and private equity transactions although each investor type has its own standards. Restrictive covenants are the actions a company cannot take without investor approval.

Common Contract Terms: Representations, Warranties and Covenants

VC Ready Blog

Covenants. Whereas representations and warranties concern the present, covenants concern the future. A covenant is a promise to do something, or refrain from doing something, during the term of the contract. If a party violates a covenant, the other party may be able to sue for any resulting damages or enforce other remedies described in the agreement. Covenants are important because they spell out the obligations of each party under the contract.

Common Contract Terms: Representations, Warranties and Covenants

VC Ready Blog

Covenants. Whereas representations and warranties concern the present, covenants concern the future. A covenant is a promise to do something, or refrain from doing something, during the term of the contract. If a party violates a covenant, the other party may be able to sue for any resulting damages or enforce other remedies described in the agreement. Covenants are important because they spell out the obligations of each party under the contract.

Common Contract Terms: Representations, Warranties and Covenants

VC Ready Blog

Covenants. Whereas representations and warranties concern the present, covenants concern the future. A covenant is a promise to do something, or refrain from doing something, during the term of the contract. If a party violates a covenant, the other party may be able to sue for any resulting damages or enforce other remedies described in the agreement. Covenants are important because they spell out the obligations of each party under the contract.

Venture Debt 101

Up and Running

Covenants: borrowers face fewer operational restrictions or covenants with venture debt. Accounts receivable loans will typically include some minimum profitability or cash flow covenants.

Georgia Non Compete Act Faces First Constitutional Challenge

Force of Good: a blog by Lance Weatherby

It's title " Do Not Implement New Restrictive Covenant Agreements: Georgia’s New Restrictive Covenants Act Faces First Constitutional Challenge.". Not too long ago John Yates and Morris, Manning & Martin launched MMM Tech Law. It's nice and they have a quickly growing MMM Tech Law LinkedIn group with over 1,200 members to go along with it. The group is a who's who of the Atlanta tech scene. Yesterday MMM Tech Law issued an alert concerning HB173 and Georgia Amendment One.

Broadwell takes aim at media bias

Winston-Salem Journal State/Region News

CHARLOTTE — Charlotte’s Paula Broadwell, who says she knows how it feels to be misrepresented by the media, spoke at Covenant Presbyterian Church on Tuesday morning about her latest cause: fighting me

Several more real costs of taking outsider investments.

Berkonomics

The combination of restrictive covenants in the investor documents and the new dynamic of board members with an agenda make for a change in the culture of the corporation, certainly one for the CEO. Close. Let’s talk about the reality of taking money from professional investors.

Shark Tank 2012 Holiday Episode Breakdown

Lightspeed Venture Partners

Banks often have operating covenants for their loans that require the company to be hitting plan, or close to it. Although Sharktank has been running reruns on Fridays the last few weeks, the show ran a Sharktank 2012 Holiday special on Tuesday night.

Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

The easiest way to do so is via SAFE notes, due to their simplicity, “available online” documentation, no major covenants established to protect the investors, no governance implications at the board level, etc. Andrew Krowne and I recently co-wrote an article in Tech Crunch , Why SAFE Notes Are Not Safe for Entrepreneurs.

My 2011 Marathon Schedule

Feld Thoughts

Following is my current schedule: April 3 – Knoxville, TN – Covenant Health Marathon. I’ve now put together eight great weeks of running in a row. On Sunday, I finally had a long run to town (from Eldorado Springs to Boulder). This has been a long tradition of mine and Amy’s – I run to town early in the morning and she drives in later, we have brunch with friends, and then get massages in the afternoons.

You Missed Your Number. Now What?

Inc Startups

You know this might mean a call from your creditor after you submit that data, and you can do the quick math to see if you tripped a covenant. Know your covenants Remember the loan document you negotiated and signed? Inside it, amidst the terms and conditions, are covenants.

Yes, I’d Like $100,000, but What the Heck is a SAFE Note?

Austin Startup

To solve this, VCs and entrepreneurs need a quick and easy way to provide seed funding, without a long, drawn out negotiation, onerous debt covenants, or a crazy valuation that could hurt the investor and/or the entrepreneur.

Take only “smart money” investments

Berkonomics

We have previously made the case that professional investors demand more in the form of restrictive covenants and lower valuations. Close. This statement could be considered controversial.

Liquidity for Venture Backed Companies Still Comes Largely in One Flavor—Cash Acquisitions

Pascal's View

It is critical to know the state of the art in merger terms leading to an acquisition and in post-merger covenants, particularly with respect to the release of cash consideration held in escrow or as a holdback by the buyer.

How 20 customer interviews enriched Lexoo’s strategy

The Equity Kicker

Daniel likes to give the following example: SMEs use lawyers a lot to review employment contracts, but the cost of doing so can vary from £300 to £1,400 depending on the complexity of the situation (options, founder status, restrictive covenants etc.). We recently invested in Lexoo , a marketplace connecting SMEs with legal services.

Back To Biz: The Rulebook For Starting Your Own Business

YoungUpstarts

Restrictive covenants to prevent the seller opening up in immediate competition. At some point in most people’s lives, the temptation to start their own business dangles before them like the proverbial golden apple.

Legal Issues Behind Running A Small Business

YoungUpstarts

You would need sound legal advice from an attorney to ensure that you avoid nasty covenants in the lease. by Melissa Page. If you’re running a small business, you need to be on top of legal basics to make your business successful.

Update your banker in good times and bad.

Berkonomics

As loan covenants become closer to being violated or after such an event, bankers have some latitude in deciding how to handle their accounts. You’ve heard the old one – that a banker always seems willing to offer a loan when you don’t need it.

How to Manage a Banker

Inc Startups

Perform Your Own Stress Test Read the fine print on your loan covenants, and then imagine worst-case scenarios. As your business seeks to expand, chances are you will need bank financing to do so. The challenge is to approach your bank with eyes wide open. Here's how.

How FX Marketing President Stephanie Gibbons Stuck the American Horror Story Promotional Landing

crowdSPRING Blog

In years prior, each season came with a subtitle that indicated what theme the anthology would follow in the episodes to come, including “Coven,” “Freak Show,” and “Hotel.” You might not be an American Horror Story fan. I wouldn’t blame you. The extravagant horror anthology from Ryan Murphy is at turns decadent, grotesque, and terrifying, and that’s not for everyone.

What if you come across juicy competitor information?

Berkonomics

And none of this is especially considered a trade secret, violating the unspoken covenant between competitor CEOs that there is a limit to such exchanges. Close. Many of us belong to industry associations and find ourselves at conferences and trade shows with time to spend with competitors.

10 Things the Bank Will Ask When You Need a Business Loan

Up and Running

Most commercial loan include what we call loan covenants, in which the company agrees to keep some key ratios —quick ratio, current ratio, debt to equity, for example—within certain defined limits. That bank loan you want for your company?

Robo-Call Started VoteNoOn1

Force of Good: a blog by Lance Weatherby

Moreover, the empirical research supports the view that covenants not to compete have a negative effect on the formation of new companies. But, if you are an employee or independent contractor "in possession of selective or specialized skills, learning, or abilities or customer contacts or customer information", and nearly everyone reading FoG is, the covenant that you sign to not compete will be enforceable.

Asset-Based Lending vs. Traditional Bank Lending: Which is Right for You?

Up and Running

Companies seeking financing to maintain and grow their business will often look first to traditional unsecured bank loans, since that is usually the least costly form of borrowing available. However, many small businesses are either: Growing rapidly, Do not have a lengthy track record; or.

Israeli Red Wines: Some Vintners are Releasing Promising Wines Too Early

Pascal's View

Among other projects, Ari is also working with Napa Valley’s Jeff Morgan of Covenant wines to make Jeff’s first Israeli wine, kosher, of course.

3 Ways to Build and Maintain Trust in Your Email Marketing

Inc Startups

Set Expectations Every single email in on your list should be thought of as a covenant between two parties. This covenant starts at the very beginning of building your list with the opt-in. What''s your definition of spam email?

Pros & Cons Of Non-Compete Agreements

YoungUpstarts

Given the challenges and limitations of non-compete agreements, there are other, less severe restrictive covenants and agreements that may be used as alternatives or supplements to non-compete agreements. By Mike Freed , attorney at Gunster.

4 Simple And Savvy Tips For Real Estate SMBs

YoungUpstarts

Housing laws are also covered by different legal covenants, and vary by property type. Image credit: Real estate from Shutterstock.

Knowledge Is Power: Convertible Note Financing Terms, Part V

Gust

The Notes will be issued pursuant to a definitive Note Purchase Agreement containing customary covenants, representations and warranties of the Company. As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. What seem like boilerplate provisions can be meaningful in some situations.

The Community Comeback: 14 Ways Local Leaders Are Reshaping America

YoungUpstarts

Pensacola used a Covenant for the Community to guarantee that contractors would use local minorities in the revitalization of downtown.

Launchpad LA – More Details Revealed

Both Sides of the Table

He had a pile of debt and covenants that made him vulnerable if the debt holders wanted to play rough. Today we announced Launchpad LA V2. Full press release with more details is here. We will be selecting 10 startup companies to participate.

The Real Cost of Capital

Inc Startups

Debt brings some rigor to the company’s financials, covenants, and requirements to repay. Consider the total cost of debt—if one provider offers a cheaper interest rate, are they also setting tighter covenants that may change how you run your business?

Cost 58

Tesla & Fisker: Game of Favorites

Inc Startups

For instance, on September 25, in a filing with the Securities and Exchange Commission, Tesla announced it had big cash-flow issues that would jeopardize covenants of it DOE loan, of which it had drawn down nearly the entire amount.

Why Banks Still Aren't Lending to You

Inc Startups

Only nine percent of senior loan officers said they increased credit limits or eased covenants for small businesses, according to a January survey by the Federal Reserve, compared to 19 percent who said they'd done so for mid-sized and large companies.

Funding options for growing businesses

Up and Running

The biggest downside to traditional debt is that it is harder to qualify for, especially in today’s post-financial crisis environment, often requiring at least two years of consistent profitability and going forward the company must maintain and abide by strict financial ratios and covenants.

Why You Should Date 5 Bankers At Once

Inc Startups

When the Pendulum Swung In the spring of 2008, at the height of the market froth, our business received a five-year loan and a line of credit at a greatly reduced interest rate with no covenants. Don''t wait until you need a banker to start looking for one.

Mis-labeled bubble: it's the structure, not the valuation

Information Arbitrage

And this covenant is communicated clearly and right upfront so there are no misunderstandings when the financing decision comes around. I’ve lived through bubbles. Lots of them. They are powerful, make a few extremely rich and many wondering what happened to their pocketbooks and their pride. What I’ve witnessed in the seed stage venture environment has not had these hallmarks.

How FX Marketing President Stephanie Gibbons Stuck the American Horror Story Promotional Landing

crowdSPRING Blog

In years prior, each season came with a subtitle that indicated what theme the anthology would follow in the episodes to come, including “Coven,” “Freak Show,” and “Hotel.” You might not be an American Horror Story fan. I wouldn’t blame you. The extravagant horror anthology from Ryan Murphy is at turns decadent, grotesque, and terrifying, and that’s not for everyone.