• BLOGTREPRENEUR | ENTREPRENEUR BLOG  |  SUNDAY, APRIL 10, 2016
    [Deal Structure] The 10 Best Real Estate Schools Compared: Meet the Winner!
    Finance and deal structuring, market analysis, site planning, and project management. Bergstrom Center for Real Estate Studies #8: Florida State University The Real Estate Program at Florida State University is structured as a multidisciplinary program that includes theory from the areas of urban land economics, consumer behavior, appraisal, investment analysis and risk theory. Who wouldn´t want a career in one of the fastest growing areas of employment in the country?
  • DAVID TETEN  |  THURSDAY, OCTOBER 1, 2015
    [Deal Structure] Should You Co-Found Your Company With a Software Development Shop (2 of 2)?
    I’ve been looking for suggestions for an initial deal structure that is appropriate for the theoretical case of a trusted dev shop putting in $100k in market-value of services over a 6 month period in time. That said, I’m not sure of the most appropriate structure. I’ve also asked this question on Quora.There, I ask for advice on how to best structure this for all parties: The development shop, the founders (outside of the dev shop), and potential outside investors.
  • HUNTER WALKER  |  MONDAY, MAY 18, 2015
    [Deal Structure] Who Invests In Investors: Homebrew LP Shares VC Performance Goals, Importance of Diversity & What They Look For In New Funds
    Similarly, a GP might be in the middle of great flow, but we need to have conviction that they can identify the right deals, structure creatively, and negotiate effectively. Satya and I approached fundraising for Homebrew as if we were building a company, asking ourselves who were the investors that would give us a solid platform, who were aligned with our values and where we learn from them.
  • START UP BLOG  |  TUESDAY, MARCH 24, 2015
    [Deal Structure] The global content playbook & how the internet actually works
    And it’s licensing deal structures born of the late 1970’s cable TV era that create this back door leakage. I’m a big fan of the John Oliver show Last Week Tonight. Which, in an unconnected web world I wouldn’t even know about as it has never been shown in Australia. But through the wonder of sharing great content online I became a big fan.
  • BOTH SIDES OF THE TABLE  |  THURSDAY, NOVEMBER 13, 2014
    [Deal Structure] How VCs Think About Adding New Partners
    In Kara’s case I got to see her work on deal structuring first hand having worked closely with her on her board at P.S. XO. Let me start with the news that I’m excited to share with you. After years of trying to persuade Kara Nortman to become a partner at Upfront Ventures I can officially announce now that she’s joined us effective immediately.
  • GUST  |  SATURDAY, OCTOBER 25, 2014
    [Deal Structure] Which books would you recommend to a VC analyst-associate?
    Insights from Leading Practitioners on the Art of Raising a Fund, Deal Structuring, Value Creation, and Exit Strategies. Venture Deals. The Business of Venture Capital. Raising Venture Capital for the Serious Entrepreneur. Mastering the VC Game. A Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Terms. Term Sheets & Valuations. A Line by Line Look at the Intricacies of Term Sheets & Valuations. Be Smarter Than Your Lawyer and Venture Capitalist.
  • VIEW FROM SEED  |  TUESDAY, OCTOBER 21, 2014
    [Deal Structure] When Should Startup Founders Discuss Valuation with Seed VCs?
    Additionally, setting a structure and price in advance at above-market value can expedite the negotiation process, especially when it’s with multiple parties. And as my partner Rob Go likes to say, “Time kills all deals.”). As a funding conversation progresses from initial to subsequent meetings, the topics of round structure and pricing become much more natural.
  • TAFFY WILLIAMS  |  WEDNESDAY, AUGUST 6, 2014
    [Deal Structure] Agile success generates great feelings
    The deal structures for the financing may follow the same pattern of making you feel ill or bringing a huge smile. Finding partners and getting deals completed can be a huge energy consuming effort. One investment banker working on a current deal says: “When the ducks quack you feed them.” Trying to raise capital in down markets can generate deals that are much less than attractive to the business. Yes, it is a bit like THIS!
  • LAUNCHING TECH VENTURES  |  TUESDAY, MAY 27, 2014
    [Deal Structure] Nymi
    Propose potential partnerships and deal structures. Nymi - Ecosystem Mapping & Business Development Okalo Ikhena Himani Jain What Is Nymi? It is a wristband that uses your unique cardiac rhythm to authenticate your identity, allowing you to wirelessly take control of your computer, your smartphone, your car and so much more.
  • BERKONOMICS  |  THURSDAY, MAY 15, 2014
    [Deal Structure] Both sides must be fair in a term sheet negotiation.
    Just a few of these terms include vesting, corporate structure, governance principles, financing strategy, valuation and exit strategy. As an example, twenty five years ago, most VCs used common share deal structures. It was not until the later 1980s that the preferred share structure became popular. During those times, VCs had lots of conferences where thought leaders gathered to discuss term sheets, deal structures and fund strategies. By Basil Peters.
  • JEFF HILIMIRE  |  TUESDAY, MARCH 4, 2014
    [Deal Structure] 10 things I wish I knew when I sold my businesses
    With my first sale, my partners and I focused all of our attention on the details of the sale (what the valuation would be, how would it be structured, etc) and very little about what would happen with us individually. It’s easy to get caught up in the dollar signs and deal structure and overlook this important step in the process. Selling a business is an interesting ride.
  • INC STARTUPS  |  THURSDAY, FEBRUARY 20, 2014
    [Deal Structure] Should You Sell Your Business? 7 Things to Consider
    Prior to the process, my business partner and I wrote down the criteria for the deal that we would accept. In the last few weeks of the deal, we were ready to back out because of a change in the deal structure. I went through with the deal, but the timing wasn''t right. Seven seasoned entrepreneurs explain the key things you need to think about before you sign on the dotted line. Have you sold a company recently?
  • INC STARTUPS  |  WEDNESDAY, FEBRUARY 12, 2014
    [Deal Structure] 'Show Me the Money' Tips for Business Sellers
    Often, an experienced broker will take the Confidential Offering Memorandum to the lender in advance of finding a buyer to obtain a preapproval, including an acceptable deal structure. This saves a significant amount of time, given that a buyer can immediately start working with a lender who is already familiar with your deal. Choosing the right broker will make a big difference in the ultimate success of your business sale.
  • INC STARTUPS  |  MONDAY, FEBRUARY 10, 2014
    [Deal Structure] Groupon Tries to Broaden Its Appeal With Self-Serve Deal Tool
    In a move designed to grow the business, Groupon is giving some merchants the power to create their own daily deals. In the hopes of broadening its market, on Monday Groupon is launching its first self-service platform on Grouponworks.com , enabling small businesses to create their own deals. Aptly named Deal Builder, the platform will be accessible 24/7 and offer a convenient way to set up deals in the vein of traditional "Groupons," such as half-off discounts and other incentives.
  • A VC : VENTURE CAPITAL AND TECHNOLOGY  |  FRIDAY, JANUARY 3, 2014
    [Deal Structure] My First Investment
    They had negotiated a deal to purchase an editor called BRIEF and a version control package whose name escapes me (might have been VCS?) So I negotiated a deal to invest the funds into the company for a revenue share on the sale of both products plus a warrant to buy stock in SDC. So we were faced with a quandry, take back the products, which we could do by contract, or restructure the deal. That deal taught me a few big lessons.
  • INC STARTUPS  |  TUESDAY, DECEMBER 3, 2013
    [Deal Structure] Why Selling Your Company is Like Dancing With the Stars
    While it may look simple, one misstep could easily cost a business owner millions of dollars or scuttle the deal altogether. Like dancing, it may look simple, but you need assistance from a pro to maximize the value of your company, close the deal and end up a winner. Like a gracefully performed dance routine, if a professional is leading the way, the process will flow smoothly and conclude to thunderous applause when the deal closes.
  • INC STARTUPS  |  WEDNESDAY, SEPTEMBER 25, 2013
    [Deal Structure] Do You Deserve Investment Capital?
    In my last column , we covered the questions you should ask to help determine whether a venture capital or private equity firm is a structural fit for you. I have a pretty simple threshold for deserving capital: If I were on the side deciding whether to put capital into my business, would I take a meaningful amount of my parents’ money and put it into this deal? I frankly end up holding the deal to a higher standard than I would if I were looking at investing my own money.
  • DAVID LEE  |  TUESDAY, JUNE 4, 2013
    [Deal Structure] Clean Deal Terms
    He said one thing there that I agree with 100%, among others: I have an allergic reaction to complex deal structures, as they invariably end up with all sorts of unintended consequences. Lately I’ve seen more complex “deal terms” in early stage financings. Namely, the super pro-rata can act as an effective blocking right to some subsequent deals. Sam Altman has a nice post here on a founder-friendly term sheet.
  • DAVID TETEN  |  MONDAY, MAY 20, 2013
    [Deal Structure] Build Your Startup on a Vacant Domain Name
    That’s why our portfolio company Plated.com decided to structure a lease option – they offered the prior owner a small monthly lease fee for 1 year, with an option to buy at the end of the year. If we find the right partner, we can be flexible in deal structures to best align everyone’s interests. There is no standard template for a deal with a domain name owner. Exit : Many options for structuring an exit depending on the objectives of the entrepreneur.
  • DAVID TETEN  |  MONDAY, MAY 20, 2013
    [Deal Structure] Build Your Startup on a Vacant Domain Name
    That’s why our portfolio company Plated.com decided to structure a lease option – they offered the prior owner a small monthly lease fee for 1 year, with an option to buy at the end of the year. If we find the right partner, we can be flexible in deal structures to best align everyone’s interests. There is no standard template for a deal with a domain name owner. Exit : Many options for structuring an exit depending on the objectives of the entrepreneur.
  • INC STARTUPS  |  MONDAY, MAY 20, 2013
    [Deal Structure] The Corrosive Downside of Acquihires
    The Aqui-hire Business Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. And wants to structure a huge payout for the employees that will remain. And will investors allow a deal to happen in the first place? The numbers you see announced in the press for deals are hardly ever right. Mark Suster explains why trying to win the "war on talent" is a losing battle.
  • BOTH SIDES OF THE TABLE  |  MONDAY, MAY 13, 2013
    [Deal Structure] The Corrosive Downside of Acquihires
    Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. And wants to structure a huge payout for the employees that will remain. And will investors allow a deal to happen in the first place. The numbers you see announced in the press for deals are hardly ever right.
  • INC STARTUPS  |  TUESDAY, MARCH 19, 2013
    [Deal Structure] Acquisitions Aren't About the Money
    When PopCap was being sold, we spoke to multiple potential acquirers, and in the end were extremely fortunate to get a great deal from a great partner. ” We'd spend countless hours talking with the other company about growth, numbers, and deal structure. Of course you want a good price for your company. But a successful acquisition involves much more than that.
  • INC STARTUPS  |  MONDAY, MARCH 18, 2013
    [Deal Structure] You Think It's About the Money. It's Not About the Money.
    When PopCap was being sold, we spoke to multiple potential acquirers, and in the end were extremely fortunate to get a great deal from a great partner. ” We'd spend countless hours talking with the other company about growth, numbers, and deal structure. Of course you want a good price for your company. But a successful acquisition involves much more than that.
  • TAFFY WILLIAMS  |  TUESDAY, JANUARY 15, 2013
    [Deal Structure] Entrepreneurs experience piling on
    Developing great business deals when multiple companies want to partner allows for optimization of the deal structure to provide the maximum return. Dealing with the negative events becomes crisis management and survival. Piling on in football implies that the opposing team members have jumped on the pile of bodies of a tackled runner after the end of a play. Great energy and enthusiasm causes the team to over react and incur the penalty.
  • CHARLIECRYSTLE.COM  |  SUNDAY, DECEMBER 23, 2012
    [Deal Structure] In it
    There's a lot on my mind right now--deal structures, building a company, managing expectations, what the future should be, what I really want. I blog less when I'm in it. I'm not sure how to change that, but when I'm in it, I'm less inclined to blog about what's on my mind. But mostly it's just on finding a win, then building more wins on top of that. That is to say--I'm in it
  • YOUNGUPSTARTS  |  TUESDAY, NOVEMBER 13, 2012
    [Deal Structure] Knowing When It’s Time To Sell Your Startup
    This deal-of-the-day service was founded in November 2008 and quickly became a sensation. The deal closed only four months later in August of 2012. Negotiating a different deal structure could have prevented the price from dropping. by Christopher Wallace, Vice President of Sales and Marketing for Amsterdam Printing. For years, the most desirable exit strategy for startup companies was to go public through an initial public offering.
  • TAFFY WILLIAMS  |  MONDAY, OCTOBER 29, 2012
    [Deal Structure] Finding Investors is highly dependent on your ability to network
    The deal structures will vary significantly dependent on their experience investing in early stage companies. Grow your network far and wide. It will serve you well! Startups always are seeking funding, the task that is a never-ending battle. Questions in social networking sites suggest that many entrepreneurs do not know how to start the process or how to find investors. The answer is NETWORK! Experienced entrepreneurs use their network extensively in seeking funding.
  • SETH LEVINE'S VC ADVENTURE  |  MONDAY, OCTOBER 8, 2012
    [Deal Structure] That convert you raised last year is a part of your cap table
    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.
  • SETH LEVINE'S VC ADVENTURE  |  MONDAY, OCTOBER 8, 2012
    [Deal Structure] That convert you raised last year is a part of your cap table
    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.
  • CHRIS DIXON  |  MONDAY, SEPTEMBER 10, 2012
    [Deal Structure] Notes on the acquisition process
    Moreover, some public companies insist that you don’t talk to employees until the deal is closed or almost closed. Deal structure: the cap table is an agreement between you and the shareholders that says, in effect: “If we sell the company, this is how we pay out founders, employees, and investors.” Some even go so far as to try to cut side deals with key employees to entice them to abandon the other employees and investors.
  • TAFFY WILLIAMS  |  MONDAY, SEPTEMBER 10, 2012
    [Deal Structure] Bring something to the party when working with others
    In a different situation, a prospective partner asked a company for a term sheet for a deal. The deal was to take place after a study was completed. Likewise, there was no discussion of the timing of the execution of the deal, scope of the deal, or other such parameters. Failure to engage and fully understand each side of the business would result in creating a deals structure that would not be meaningful to one or both parties.
  • DAVID LEE  |  SUNDAY, SEPTEMBER 9, 2012
    [Deal Structure] Your (Potential) Investor's Business Model
    Different business models lead to different approaches to valuation, deal structure and diligence process. In each case, the valuation discussion, deal structure and process will all vary accordingly “[O]ne thing I should tell you is that our approach is our approach, and we don’t even claim it’s the right approach.” ” - Jeff Bezos, 9/6/12, on Amazon’s business model. Different investors have different business models.
  • CHARLIECRYSTLE.COM  |  SATURDAY, SEPTEMBER 8, 2012
    [Deal Structure] SeedRuption
    If I'm a hot deal in NY or SOMA, maybe I can raise and close an angel round in a few weeks. So, context matters to deal structure. So maybe the guidance for deal docs should be this: Convertible Debt: for founders who need a rolling close so the cash can come in as it's raised. I hate that title, but it's Saturday night and I'm feeling saucy. Suster posted a rant about convertible debt vs equity. Fred followed up. Everybody's weighing in.
  • GENUINE VC  |  MONDAY, JULY 30, 2012
    [Deal Structure] Signaling Pricing Expectations Early in Seed Investment Discussions
    As more transparency to seed-round funding transaction details have emerged, especially with the advent of Angelist and accelerator programs (which both educate and even sometimes set terms & structure for graduating companies), I’ve noticed an increasing number of entrepreneurs signal pricing expectations much earlier in the seed fundraising process. Setting a structure and price in advance can also expedite the negotiation process, especially when it’s with multiple parties.
  • JOHN O'FARRELL  |  THURSDAY, MARCH 1, 2012
    [Deal Structure] Who You Gonna Call? Partnering with Goliath: A Tale of Two Announcements
    Our 2003 deal with HP didn’t generate a single dollar in revenue, whereas our 2006 agreement with Cisco drove tens of millions of dollars in sales and helped to make Opsware the uncatchable leader in data center software. In theory, striking a deal to have an HP or an EMC or a Vodafone sell your product to their customers is the way to cover the market and exponentially increase sales velocity. Behind the headlines – a deal with teeth. SUNNYVALE, Calif., June 2, 2003.
  • STARTUP PROFESSIONALS MUSINGS  |  FRIDAY, JANUARY 27, 2012
    [Deal Structure] Keep Term Sheets Simple for Quicker Cash to Spend
    Remember a term sheet agreement is not a deal until the check clears. It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Angels may want the first right to purchase shares held by the other angels in the deal before they are sold to an outside party.
  • FELD THOUGHTS  |  MONDAY, JANUARY 2, 2012
    [Deal Structure] Book: The Business of Venture Capital
    In the fall of 2010 Mahendra Ramsinghani reached out to me by email about a new book he was working on called The Business of Venture Capital: Insights from Leading Practitioners on the Art of Raising a Fund, Deal Structuring, Value Creation, and Exit Strategies. I was deep into writing Venture Deals: Be Smarter Than Your Lawyer and VC with one of my other partners – Jason Mendelson – and it was neat to see how Mahendra’s book complimented ours.
  • TAFFY WILLIAMS  |  TUESDAY, DECEMBER 20, 2011
    [Deal Structure] Dialing for Dollars
    Having a business advisorand a great corporate counsel is important to the final deals structure. One local VC indicated they review more than 600 deals per year andinvest in around 6. As statedbefore, your startup will have little or no money for the first severalmonths. The most important activitiesyou can do in this time are to create as much value to make the companyfundable. Chicken or Egg” is the bestanalogy one can provide to the situation you will face.
  • CHRIS DIXON  |  TUESDAY, DECEMBER 13, 2011
    [Deal Structure] Later-stage rounds and “setting the bar too high”
    But in reality, assuming the standard preferred structure, the last round investors’ payout is as follows : Scenario 1 : Dropbox exits for greater than $4B ==> investors get a positive return (specifically, exit price divided by $4B). Note that I have no connection to Dropbox so am just assuming standard deal structure and basing numbers on public reports.
  • STARTUPCFO  |  THURSDAY, NOVEMBER 10, 2011
    [Deal Structure] From demo day to dollars!
    If you can agree on a deal with that person you can use that to get people on board. Secure the $, then optimize the deal : While valuation matters, the most important thing is to get the $ you need to get to the next big value-creating milestone. Don’t lead with a deal structure, but instead focus on the $ you need and what you will accomplish with them. While some commitments happen on demo day, in most cases you need weeks if not months to close your deal.
  • GUST  |  WEDNESDAY, OCTOBER 26, 2011
    [Deal Structure] Knowledge Is Power: Convertible Note Financing Terms, Part V
    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. This is the norm for West Coast deals, but it’s often the case in dealing with East Coast investors (more commonly for VC financing rounds rather than angel seed rounds) that the lead investor wants its lawyers to draft the documents.
  • GUST  |  FRIDAY, OCTOBER 21, 2011
    [Deal Structure] Knowledge Is Power: Convertible Note Financing Terms, Part IV
    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. Having covered just about every path a convertible note can take, we’ll finish up the series by looking at a few miscellaneous term sheet items and revisiting the pros and cons of different deal structures.
  • GUST  |  MONDAY, OCTOBER 17, 2011
    [Deal Structure] Keep Term Sheets Simple for Quicker Cash to Spend
    Remember a term sheet agreement is not a deal until the check clears. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Angels may want the first right to purchase shares held by the other angels in the deal before they are sold to an outside party.
  • GUST  |  WEDNESDAY, OCTOBER 5, 2011
    [Deal Structure] Knowledge Is Power: Convertible Note Financing Terms, Part II
    In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal. A term sheet keeps things relatively straightforward by summarizing the most significant deal terms in outline form, whereas the deal documents themselves (often referred to as definitive agreements ) — even for a relatively simple convertible debt financing — inevitably contain some densely written legalese. These deal terms are simple but significant.
  • GRASSHOPPERHERDER.COM  |  SATURDAY, SEPTEMBER 24, 2011
    [Deal Structure] Piercing the Corporate Veil of Sweat Equity
    Three Card Monty Corporate Structures. This is my least favorite thing in the world, being offered sweat equity in a corporate structure that is unnecessarily convoluted. If you’re in a complex structure with several multinational entities, that risk is compounded. IMPORTANT CAVEAT: Please note that I’ve been on both sides of this and there are very legitimate reasons for a founder to do implement the example structure below. GrasshopperHerder.com.
  • VC CAFE  |  TUESDAY, SEPTEMBER 6, 2011
    [Deal Structure] 10 Tips for Startups Raising Money from Angels
    Deal structure – I could write a full post just on this, but some aspects that were brought up are the need to agree on a reasonable valuation, what investment vehicles are used (convertible debt vs stock, options and warrants and other non-dilutive mechanisms).
  • SCOTT EDWARD WALKER  |  MONDAY, AUGUST 22, 2011
    [Deal Structure] Walker Twitter Highlights: August 11th – 21st
    prAYlf Quora-Related Quora: What deal structure should be in place for a friend/family investment of < 20k in your startup? I’m using Twitter as a form of micro-blogging to share interesting blog posts, articles and podcasts relating to entrepreneurship and startups, M&A and legal issues. Below are my five most popular tweets (via bit.ly ) for the past 10 days and a couple of Quora-related tweets.
  • MARK BIRCH  |  TUESDAY, AUGUST 16, 2011
    [Deal Structure] Include Deal Terms or Not?
    I had a discussion the other night with an entrepreneur about whether to include specific deal terms in the pitch deck or investor meetings. There are seven main points to consider when talking about the structure of the deal: Raise – The amount of capital you are raising. Terms – Specific contractual elements governing deal. In this way, you can structure the conversation and presentation accordingly.
  • ALLEN'S BLOG  |  TUESDAY, JULY 12, 2011
    [Deal Structure] allensblog: "Fully-Diluted"
    In a deal recently, the term sheet offered by the prospective investor contained a reference to the term: "fully-diluted" The company accepted the term sheet and the lawyers drafted the documents. On review by the Company, however, it became clear that the parties had different interpretations of "fully-diluted" Due to some idiosyncracies of the company's capital structure, the disagreement had a significant impact on the deal structure.
  • TAFFY WILLIAMS  |  WEDNESDAY, JUNE 29, 2011
    [Deal Structure] Startup Blog: Take a Stand!
    It may be around deal structure, testing or design of product, new hires, downsizing or firing, how much to spend on a program or some other issue. Take for example a situation where a Board Member has become heavily involved in a negotiation on a deal and is sanctioned by the Board to do so. The deal terms are ones you as the CEO, entrepreneur, or employee know will cause great stress and even the possible demise of the company.
  • A SMART BEAR: STARTUPS AND MARKETING FOR GEEKS  |  MONDAY, JUNE 27, 2011
    [Deal Structure] How to value your company for sale (Part 2)
    Remember how the buyer has his own way of valuing the deal ? You’re skipping a step — trying to decide if the deal is even plausible — but how can you decide that if all you’re doing is thinking about the other side? If you have a deal in front of you it’s easy to plug in the requisite numbers. Deal B gets you only 80% of your number, but comes with a six-month transition period and you’re free to start working on the next fun thing.
  • TAFFY WILLIAMS  |  WEDNESDAY, APRIL 20, 2011
    [Deal Structure] Startup Blog: 7 Questions You May Get from Potential Investors
    This can happen based on a great deal with a partner, positive data from proof-of-concept, a major advancement in development, or other such value creating events. I also try very hard to not give the answer unless we are approaching the investors with a very specific deal structure for the investment. If you are dealing with a lead investor, they usually go by the “golden rule; I got the gold I set the rules.&#
  • RECENT BUZZES - VC EXPERTS, INC.  |  THURSDAY, APRIL 14, 2011
    [Deal Structure] A Summary of Current Trends in Canadian Mergers and Acquisitions - 2011
    With keen international interest in Canada's resource sector, the return of financial buyers, strategic investors looking to pursue acquisitions as a means of increasing earnings, and the recent uptick in Canadian "mega-deal" activity, there is no better time to discuss the M&A trends unfolding in 2011. HOSTILE DEALS. s arrangement to collapse its multiple voting share structure, will continue in the coming year.
  • ENTREPRENEURS-JOURNEY.COM BY YARO STARAK  |  FRIDAY, JANUARY 21, 2011
    [Deal Structure] Why Leave A Six Figure Corporate Job For Internet Entrepreneurship?
    I travelled all over the world wherever business deals were happening, gained tremendous experience and exposure to the Corporate landscape, and learned invaluable life lessons in my career. I worked out a similar deal the next go around, and the snowball started rolling from there. Investment in small businesses require knowledge of transactions and the related aspects such as business valuation, due diligence, deal structuring / financing, contracts, etc.
  • STARTUPCFO  |  WEDNESDAY, NOVEMBER 24, 2010
    [Deal Structure] The downside of high valuations
    When it comes to deal structuring, the higher you push the valuation, the more “protections&# investors will build in. As I was looking through Fenwick & West’s Q3 Silicon Valley VC survey , there are clear signs that these protections are making their way into the deals that are getting done: - 20% of deals had multiple liquidation preferences. 53% of deals had participating prefs.
  • BOTH SIDES OF THE TABLE  |  THURSDAY, SEPTEMBER 23, 2010
    [Deal Structure] What Entrepreneurs Should do about Price Fixing
    That is why I tell people not to shop deals too widely. So acknowledge it to yourself and be prepared to deal with it. When I was fund raising for my second company we had agreed a company-wide deal with Salesforce.com to use our product. Deal with it.&# And as I’m sure you’re aware shit rolls down hill. we’re intentionally not going wide with this deal. We discuss deal structures. This is super funny.
  • STARTUP PROFESSIONALS MUSINGS  |  TUESDAY, SEPTEMBER 14, 2010
    [Deal Structure] A Primer on Angel Investment ‘Simple Term Sheets’
    Remember a term sheet agreement is not a deal until the check clears. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Angels may want the first right to purchase shares held by the other angels in the deal before they are sold to an outside party.
  • THE STARTUP LAWYER  |  MONDAY, AUGUST 23, 2010
    [Deal Structure] Keeping a Seed Financing Round Open
    But in order to properly accomplish this, your startup will have to keep the round “open&# via the deal documents. But remember that while a lot of these deal structures are standard — each individual deal is unique. Startups don’t want to wait until every investor is ready before closing on a seed financing round. First, the roster of investors will not be identified and/or cutting checks on the same day. Second, what startup wants to wait on cash?
  • FRED DESTIN  |  SATURDAY, APRIL 17, 2010
    [Deal Structure] Goldman Sachs / SEC: political witch-hunting is no way to change a market
    Reading the allegations against Goldman Sachs and Fabrice Tourre in the case of structured CDO scandal (aka Abacus), I am reminded of Spitzer and how a General Attorney used a witch-hunt as a political tool, only to be later exposed himself in the company of barely clad ladies. The description of this [0]% - [9]% tranche at the bottom of the capital structure was consistent with the description of an equity tranche and ACA reasonably believed it to be a reference to the equity tranche.
  • GROWTHINK BLOG  |  MONDAY, FEBRUARY 15, 2010
    [Deal Structure] Selling Your Business: An Interview with Louis Crosier
    While you can listen to the interview yourself here , two of my favorite points were as follows: -1- Your choice of corporate structure (e.g., Fortunately, you can, for the most part, change your corporate structure down the road. What are the main types of deal structures when selling your business, such as selling for all cash or for all stock?
  • SEED STAGE CAPITAL  |  SUNDAY, JANUARY 24, 2010
    [Deal Structure] Startup Business Development Strategies: 7 Tips For Putting.
    skip to main | skip to sidebar 24 January 2010 Startup Business Development Strategies: 7 Tips For Putting Together Stellar Deals Business development is fun. Putting together partnership deals requires a special combination of hustle, strategic thinking, technical chops, project management, and sales and negotiation skills. A few tips for startups doing deals: 1. Introduce competition into every deal. Be operationally ready to do a deal.
  • RECENT BUZZES - VC EXPERTS, INC.  |  MONDAY, DECEMBER 7, 2009
    [Deal Structure] Deal Certainty ?The Fallacy of a New Market
    In the aftermath of the economic crisis that began in mid-2007, much ink has been spilled on the lessons learned by buyers and sellers regarding the pitfalls of deal certainty and the development of new paradigms for both financial and strategic buyers.
  • SEED STAGE CAPITAL  |  MONDAY, AUGUST 24, 2009
    [Deal Structure] in search of.the ideal term sheet
    For any large deal, they will convert and be treated like the founders and employees. VCs really need to move to a deal structure that doesn’t burn up so much lawyer time negotiating provisions that are almost never used. When you’re only raising $1 million, that’s a big deal." The main takeaway is that terms will differ, and entrepreneurs should avoid deals where Series A terms are used for a seed financing.
  • TIM KEANE  |  THURSDAY, AUGUST 20, 2009
    [Deal Structure] Are Investors Being Unreasonable? - Startups and angels: Along the.
    Ask any of us who've experienced significant down rounds based on some or all of these things, and one begins to understand the cautionary nature of deal structures.    Many I know will actively seek deals to work on that are run by fun, engaging people who are eager to grow the business and know what they're doing.  When there is the prospect of future rounds, sometimes evidenced by misses in the past, deal structures become more caution-driven.
  • ANGEL BLOG  |  THURSDAY, APRIL 23, 2009
    [Deal Structure] Angel Investing is Where VC was 25 Years Ago
    As I attended sessions, and had conversations, on everything from deal structures to term sheets and deal flow to exits, it occurred to me that I had been in similar conferences about 25 years ago. The angel investment ‘industry’ today is at about the same stage of development as the venture capital industry was in the mid 1980’s. Last week, I was at the Angel Capital Association annual conference in Atlanta.
  • CRACKING THE CODE  |  FRIDAY, OCTOBER 10, 2008
    [Deal Structure] Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.
    A simple example would be if Customer A signs a one-year deal at $10,000 per month, and Customer B signs a three-year deal at $5,000 per month. The “repeatable” aspect is critical: too often companies scale their sales force aggressively after their first senior rep is getting traction in the market and then quickly realize that the new hires struggle to sign their first deal because they don’t have three VP’s and the CEO alongside them.
  • ANGEL BLOG  |  THURSDAY, APRIL 19, 2007
    [Deal Structure] Exchangeable shares
    Exchangeable share deal structures solve some of the challenges angels have been having over the past five years. Exchangeable shares solve the biggest problem with convertible notes - the unfair discount - while maintaining their simplicity and cost effectiveness
  • WILL PRICE  |  WEDNESDAY, MARCH 22, 2006
    [Deal Structure] Looking for a job in VC
    Later stage firms typically value financial analysis, deal structuring, and deal execution skills. In the last month, I have had the good fortune to speak to numerous graduate students regarding finding a job in venture capital. While much has been said about the process already, it appears the demand for guidance is undiminished. This post summarizes some of the advice I am giving people. First, asking for how to get into VC is akin to asking how to get into medicine.

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