When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

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.”).

Both sides must be fair in a term sheet negotiation.

Berkonomics

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. By Basil Peters.

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Notes on the acquisition process

Chris Dixon

Clearly it is better to be in high demand and have inbound interest. 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.” Certain terms beyond price can be deal killers.

Bring something to the party when working with others

Taffy Williams

Your previous boss demanded exceptional work from you, but never recognized your contributions. 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.

Who Invests In Investors: Homebrew LP Shares VC Performance Goals, Importance of Diversity & What They Look For In New Funds

Hunter Walker

We triangulate with investors, entrepreneurs and large company operators to assess probability of success and ability to attract in-demand entrepreneurs.

LP 37

A Summary of Current Trends in Canadian Mergers and Acquisitions - 2011

Recent Buzzes - VC Experts, Inc.

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. The tremendous Asian demand for commodities is well recognized around the world, as Asian investors have been active in Brazil, India, Russia, and increasingly in Canada.

Why Leave A Six Figure Corporate Job For Internet Entrepreneurship?

Entrepreneurs-Journey.com by Yaro Starak

I was trading real heavy hours for heavy dollars, and led a very mobile, demanding and by choice, a pressure packed lifestyle. 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.

Why Selling Your Company is Like Dancing With the Stars

Inc Startups

Selling a middle market business is a complex and demanding dance. While it may look simple, one misstep could easily cost a business owner millions of dollars or scuttle the deal altogether.

Groupon Tries to Broaden Its Appeal With Self-Serve Deal Tool

Inc Startups

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.

Knowledge Is Power: Convertible Note Financing Terms, Part IV

Gust

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. a) payable upon demand as of the closing of such transaction; or. (b) This is particularly true under the severe time pressure that tends to accompany M&A. “ Payable upon demand as of the closing of such transaction ” is the fallback position described above as #1.

Looking for a job in VC

Will Price

While much has been said about the process already, it appears the demand for guidance is undiminished. 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. 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.

The downside of high valuations

StartupCFO

When we hear about high pre-money valuations for companies like Quora it can be tempting to demand higher valuations for your own company. When it comes to deal structuring, the higher you push the valuation, the more “protections&# investors will build in. 53% of deals had participating prefs. And if your deals have lots of protections built in, then you need those high exits if you, as founders, are going to hit the jackpot.

Build Your Startup on a Vacant Domain Name

David Teten

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. Another option: look on the sites of such domain name investors as Archeo , Demand Media , GlobalVentures , iREIT (portfolio handled by DomainHoldings), Oversee.net , and World Accelerator. There is no standard template for a deal with a domain name owner.

Build Your Startup on a Vacant Domain Name

David Teten

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. Another option: look on the sites of such domain name investors as Archeo , Demand Media , GlobalVentures , iREIT (portfolio handled by DomainHoldings), Oversee.net , and World Accelerator. There is no standard template for a deal with a domain name owner.

Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

Only after reaching $1M in CMRR should you consider hiring European sales and services execs behind customer demand. ” Take advantage of being on-demand and allow customers to try and buy your service with as little friction as possible. Cracking The Code.