Startup Professionals Musings

JANUARY 27, 2012

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. However, there is no set pattern of terms an entrepreneur might be able to anticipate from either. Anti-dilution protection.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 223

Gust

OCTOBER 21, 2011

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.” Entrepreneurs generally don’t ask for this kind of language, but most sophisticated investors will insist on it in one form or another.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Genuine VC

JULY 30, 2012

Like any economic transaction, the pricing of a startup’s seed round ultimately depends on the equation of perceived supply (the quality of the team, product, & market) and demand (how many competitive alternatives there are to any one given funder, including non-consumption). Above market.

Valuation 136

Valuation Pre-Money Valuation Angel Investor Syndicate 136

David Teten

MAY 20, 2013

This is part 2 of a 2-part series on domain names and startups; part 1 was “ Should a Startup Spend VC Funding on a Domain Name? ”. I’ve written in the past about how to identify a great startup opportunity. The last thing a startup needs is MORE risk. credit: Wikipedia)).

Naming 114

Naming Startup Venture Capital Portfolio 114

David Teten

MAY 20, 2013

This is part 2 of a 2-part series on domain names and startups; part 1 was “ Should a Startup Spend VC Funding on a Domain Name? ”. I’ve written in the past about how to identify a great startup opportunity. The last thing a startup needs is MORE risk. credit: Wikipedia)).

Naming 114

Naming Startup Venture Capital Portfolio 114

David Teten

JANUARY 21, 2021

VI: Revenue-based financing: The next step for private equity and early-stage investment. This is a summary of: Revenue-Based financing: State of the Industry 2020. VIII: The Leading Flexible VCs, With Structures Between Equity and Revenue-Based Investing. per year and we plan to invest about $100k in 20 startups per year.

Equity 78

Equity Revenue Cofounder Colorado 78

Gust

OCTOBER 26, 2011

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. The Note Purchase Agreement and Convertible Promissory Note are essential documents for any convertible note financing.

Finance 79

Finance Term Sheet Covenant Accredited Investor 79

A Smart Bear: Startups and Marketing for Geeks

JUNE 27, 2011

Most entrepreneurs would love to be in a position to have to decide! There are plenty of folks who wouldn’t sell their company for a billion dollars; Jason Fried and Joel Spolsky are public examples from the bootstrapped startup world. That means you have to be that sure that that’s the number, regardless of deal structure.

Sales 235

Sales Term Sheet Stock Deal Structure 235

Cracking the Code

OCTOBER 10, 2008

Together, CMRR, Cashflow, Churn, CAC, and CLTV make up the “5 C’s of SaaS Finance. For sales, they should be paid on new CMRR with a standard deal structure (such as a one year deal, with quarterly pre-payments), and incentives for more favorable cash flow terms (such as multi-year pre-payments).

Software Review 48

Software Review North America Europe Metrics 48