Gust

OCTOBER 17, 2011

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. Seat on the board.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

Genuine VC

JULY 30, 2012

In theory, there are three levels of pricing for an entrepreneur to potentially signal to a prospective investor: Lower than “market.” This approach is almost never a good idea. By definition, all entrepreneurs should think that their endeavor is truly exceptional. Above market.

Valuation 136

Valuation Pre-Money Valuation Angel Investor Syndicate 136

Berkonomics

MAY 15, 2014

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. Just a few of these terms include vesting, corporate structure, governance principles, financing strategy, valuation and exit strategy. Raising money'

Term Sheet 91

Term Sheet Angel Groups Angel Investor Deal Structure 91

Both Sides of the Table

MAY 13, 2013

And a few teams of super talented, educated and bright entrepreneurs make a few mill. I look for entrepreneurs who set out on their journeys to do exactly that – build big businesses. I don’t blame entrepreneurs who go for an early exit when it comes up. in their 20′s. What could be more capitalist than that?

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

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

VC Cafe

SEPTEMBER 6, 2011

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. What experience or contacts are they bringing to the table?

Startup 133

Startup Cofounder Warrant Stock Options 133

Gust

OCTOBER 5, 2011

This paragraph is the heart of the whole deal. This “ uncapped note ” example ignores the concept of a valuation cap , which we’ll take up in a future installment. To keep the math simple without getting bogged down in share numbers and valuations, let’s assume the new investor pays $1.00

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

YoungUpstarts

NOVEMBER 13, 2012

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. Negotiating a different deal structure could have prevented the price from dropping. Here are a few to consider.

IPO 162

IPO Exit Strategy San Francisco Startup 162

Tim Keane

AUGUST 20, 2009

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.    If the entrepreneur can bootstrap.

Milwaukee 60

Milwaukee Bootstrapping Cram Down Deal Structure 60

grasshopperherder.com

SEPTEMBER 24, 2011

Valuations. I was approached with one sweat equity offer that placed the valuation of the company at >$5 million pre-money and before even a seed round of funding. I would be very wary of accepting a valuation like this, simply because I’m not qualified and as a consultant, I shouldn’t have to be. Unseen Metrics.

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41

A Smart Bear: Startups and Marketing for Geeks

JUNE 27, 2011

Most entrepreneurs would love to be in a position to have to decide! 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? They know there’s a minimum valuation, under which you’re not interested.

Sales 235

Sales Term Sheet Stock Deal Structure 235

Cracking the Code

OCTOBER 10, 2008

As all good sales VPs will tell you, the compensation plans of the sales team will drive behavior, so it is critically important that you structure the sales and account management plans to align with the key metrics of your business: CMRR, Churn, and Cash flow. ” Gary Messiana, Bessemer Entrepreneur-In-Residence and former CEO, Netli.

Software Review 48

Software Review North America Europe Metrics 48

Entrepreneurs-Journey.com by Yaro Starak

JANUARY 21, 2011

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. It turns out Sunil has done a few things.

Internet 80

Internet Technical Review Stock Due Diligence 80