Entrepreneurs experience piling on

Taffy Williams

Piling on is an event that may occur to entrepreneurs on their startup playing field. Developing great business deals when multiple companies want to partner allows for optimization of the deal structure to provide the maximum return.

IPO 24

Which books would you recommend to a VC analyst-associate?

Gust

Insights from Leading Practitioners on the Art of Raising a Fund, Deal Structuring, Value Creation, and Exit Strategies. Raising Venture Capital for the Serious Entrepreneur. Venture Deals. The Business of Venture Capital. 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.

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Startup Blog: Take a Stand!

Taffy Williams

Basics are provided to help entrepreneurs. The time will come in every entrepreneur’s company existence when a critical decision must be made about direction of the business. Most often the company is like having a child to the entrepreneur.

Agile success generates great feelings

Taffy Williams

Highs and lows are part of being an entrepreneur. 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.

Agile 51

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

In short, more and more entrepreneurs are signaling their price expectations earlier in their seed fundraise process. In theory, there are three levels of pricing for an entrepreneur to potentially signal to a prospective investor: 1.

My First Investment

A VC : Venture Capital and Technology

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.

Finding Investors is highly dependent on your ability to network

Taffy Williams

Questions in social networking sites suggest that many entrepreneurs do not know how to start the process or how to find investors. Experienced entrepreneurs use their network extensively in seeking funding. entrepreneur investor Startup management leadership financing networking

Book: The Business of Venture Capital

Feld Thoughts

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.

The Corrosive Downside of Acquihires

Both Sides of the Table

And a few teams of super talented, educated and bright entrepreneurs make a few mill. 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.

Later-stage rounds and “setting the bar too high”

Chris Dixon

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).

Notes on the acquisition process

Chris Dixon

Since then, the topic has since been widely discussed on blogs, to the great benefit of entrepreneurs. Moreover, some public companies insist that you don’t talk to employees until the deal is closed or almost closed. Inexperienced entrepreneurs tend to get overly excited about a few good meetings. 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.

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. Given the abundance of capital in today’s market, we want to feel that an entrepreneur will pick this team to sit with at the table.

LP 38

Both sides must be fair in a term sheet negotiation.

Berkonomics

These usually involve a handful of angel investors, and a few entrepreneurs, who all want to build the very best term sheet for their exciting nascent enterprise. As an example, twenty five years ago, most VCs used common share deal structures. By Basil Peters.

Dialing for Dollars

Taffy Williams

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. entrepreneur investor Startup financingAs 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.

Startup Business Development Strategies: 7 Tips For Putting.

Seed Stage Capital

skip to main | skip to sidebar 24 January 2010 Startup Business Development Strategies: 7 Tips For Putting Together Stellar Deals Business development is fun. A few tips for startups doing deals: 1. Introduce competition into every deal. Be operationally ready to do a deal.

What Entrepreneurs Should do about Price Fixing

Both Sides of the Table

I thought I’d try to look at it from a different lens, that of the entrepreneur. As an entrepreneur you should assume that. That is why I tell people not to shop deals too widely. So acknowledge it to yourself and be prepared to deal with it. This is super funny.

That convert you raised last year is a part of your cap table

Seth Levine's VC Adventure

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. Of course many entrepreneurs naturally focus on the main tab of their cap table spreadsheet that shows ownership by founder, investor, etc and for them this is the starting point of negotiating a round.

Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

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.

Acquisitions Aren't About the Money

Inc Startups

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.

Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

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. By definition, all entrepreneurs should think that their endeavor is truly exceptional.

That convert you raised last year is a part of your cap table

Seth Levine's VC Adventure

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. Of course many entrepreneurs naturally focus on the main tab of their cap table spreadsheet that shows ownership by founder, investor, etc and for them this is the starting point of negotiating a round.

10 Tips for Startups Raising Money from Angels

VC Cafe

I could write a whole post on the 7-D model students follow (and I probably will) but I’d like to focus on a lecture at the end of the course, by a UK-based angel investor, who provided tips for entrepreneurs to make their company attractive for an angel.

How to value your company for sale (Part 2)

A Smart Bear: Startups and Marketing for Geeks

Most entrepreneurs would love to be in a position to have to decide! Remember how the buyer has his own way of valuing the deal ? I just coached an entrepreneur who couldn’t decide whether to accept an offer for selling his business of nine years. Do you prefer Deal B?

Why Leave A Six Figure Corporate Job For Internet Entrepreneurship?

Entrepreneurs-Journey.com by Yaro Starak

Sunil contacted me asking if he could apply to become a columnist on Entrepreneurs-Journey. I asked him what are the highlights of his “career&# as an entrepreneur so I could be confident in his credibility and he had stories to tell that we could all learn from. For now, Sunil answers the question of why leave a well paying corporate job to become an online entrepreneur… My name is Sunil and the title of this blog post refers to me.

allensblog: "Fully-Diluted"

Allen's Blog

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.

The 10 Best Real Estate Schools Compared: Meet the Winner!

Blogtrepreneur | Entrepreneur Blog

Finance and deal structuring, market analysis, site planning, and project management. The program framework focuses on the impacts of taxation, risk, financing structure, governmental constraints, and market context. appeared first on Blogtrepreneur - For Busy Entrepreneurs.

Do You Deserve Investment Capital?

Inc Startups

Plenty of entrepreneurs want an investment, and some really need it. 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.

Should You Sell Your Business? 7 Things to Consider

Inc Startups

Seven seasoned entrepreneurs explain the key things you need to think about before you sign on the dotted line. Below, seven members of the Entrepreneurs'' Organization explain how they navigated the situation themselves. I went through with the deal, but the timing wasn''t right.

A Primer on Angel Investment ‘Simple Term Sheets’

Startup Professionals Musings

Remember a term sheet agreement is not a deal until the check clears. Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. It prevents the entrepreneur from selling early, at a loss to the investor.

Knowing When It’s Time To Sell Your Startup

YoungUpstarts

However, for many successful entrepreneurs, weighing all of the personal and financial issues that go into this decision can be gut-wrenching. Each one can provide valuable lessons to the entrepreneur. The deal closed only four months later in August of 2012.

Startup Blog: 7 Questions You May Get from Potential Investors

Taffy Williams

Basics are provided to help entrepreneurs. 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. You never have to take the deal offered and can try to negotiate a better one.

Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

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.

in search of.the ideal term sheet

Seed Stage Capital

It is very basic (a good thing) and entrepreneur-friendly. 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.

Selling Your Business: An Interview with Louis Crosier

Growthink Blog

Among other impressive accomplishments, Louis is the author of "Selling Your Business: The Transition from Entrepreneur to Investor." Specifically, Louis is an expert on helping entrepreneurs realize their financial dreams by selling their businesses and investing their proceeds wisely. 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., Which are the most favorable to the entrepreneur?

Knowledge Is Power: Convertible Note Financing Terms, Part V

Gust

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.

Knowledge Is Power: Convertible Note Financing Terms, Part IV

Gust

This week we move on to something near and dear to the hearts of entrepreneurs and investors alike: The exit, more formally known as a “ liquidity event.” 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. Invested Interests angel investment deal terms fundraising startups venture capital

Are Investors Being Unreasonable? - Startups and angels: Along the.

Tim Keane

Who the entrepreneur takes money from (see this post ) is always more important than the terms. "  The problem has been that too-high valuations and too generous terms have spawned painful down rounds that squash the entrepreneur and his early investors.    New money, usually VC money, comes in and crams down those early investors and takes substantial shares from the entrepreneur.    If the entrepreneur can bootstrap.

Include Deal Terms or Not?

Mark Birch

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.

The Corrosive Downside of Acquihires

Inc Startups

And a few teams of super talented, educated and bright entrepreneurs make a few mill. 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.

Angel Investing is Where VC was 25 Years Ago

Angel Blog

Entrepreneurs, government officials and the general population consistently underestimate the importance of angels to the financial ecosystem and the growth in the economy. 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. When I was a young entrepreneur, part of our plan was to finance our growth with venture capital.