Both Sides of the Table

MAY 13, 2013

For the past 5 years or so Google, Facebook and a handful of tech industry giants have been quietly buying scores of early-stage startups for their talent. I’m supposed to believe that my best innovation can only come from scores of startup founders who just made millions and have now become CVOs at my company? Go do a startup.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

Scott Edward Walker

FEBRUARY 9, 2020

Instead of investing in the stock market or in startups (e.g., It matters because, unless you understand the motivation of a prospective buyer, it will be very difficult to make informed decisions with respect to critical deal issues. How Is the Deal Structure Different with a Financial Buyer?

Private Equity 59

Private Equity New York City Equity Deal Structure 59

Scott Edward Walker

DECEMBER 13, 2018

An acquihire is essentially the acquisition of a startup for its talent/team (rather than for its products or services). The acquirer is typically a large successful company, and the target is typically a failing early-stage startup. The appeal from the startup’s perspective is a “soft landing.”. How is the Deal Structured?

Founder 45

Founder Merger IP Liquidation Preference 45

The Startup Lawyer

AUGUST 23, 2010

Startups don’t want to wait until every investor is ready before closing on a seed financing round. Second, what startup wants to wait on cash? But in order to properly accomplish this, your startup will have to keep the round “open&# via the deal documents.

Finance 70

Finance Deal Structure Sales Startup 70

Gust

OCTOBER 5, 2011

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal. These deal terms are simple but significant. In fact, there is a recent variation on this theme.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Gust

OCTOBER 21, 2011

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. if the startup is acquired before the notes mature or convert, investors will be paid 2X or 3X their investment).

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

K9 Ventures

OCTOBER 10, 2017

This post is intended to be a dynamic document, and I will attempt to update it from time to time with new questions that may arise or as financing trends evolve. Well, enter the Pre-Seed round, where the startup raises closer to $500K. Likewise in startups, companies need to work with the capital that is appropriate for their stage.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82