YoungUpstarts

MAY 14, 2018

To safeguard your team from getting emotionally over-committed to a specific business, carefully balance the price being offered for the target, the strategic problem or opportunity it addresses, the likely near-term cash flow of the target, the integration strategy, the inherent risks and the deal structure.

Acquisition 124

Acquisition Finance Raleigh Mezzanine 124

Startup Professionals Musings

JANUARY 27, 2012

It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Define equity type. Entrepreneurs sometimes assume an initial agreement with an Angel is a commitment, so they start spending before any money is received.

Term Sheet 223

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

VC Adventure

OCTOBER 8, 2012

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. Not necessarily a bad deal, but if you didn’t have that in your head you’re setting yourself up for a big surprise.

Cap Table 93

Cap Table Dilution Equity Deal Structure 93

Startup Professionals Musings

SEPTEMBER 14, 2010

It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Define equity type. Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Gust

OCTOBER 17, 2011

It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Define equity type. Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received.

Term Sheet 158

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

VC Adventure

OCTOBER 8, 2012

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. Not necessarily a bad deal, but if you didn’t have that in your head you’re setting yourself up for a big surprise.

Cap Table 48

Cap Table Dilution Equity Deal Structure 48

Gust

OCTOBER 5, 2011

In case it isn’t clear by now, angel investors aren’t in the business of making risky early stage investments in order to earn 6% interest on their money, or even 10%— the upside is all in conversion to equity—so the interest rate isn’t a major point of negotiation.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Gust

OCTOBER 21, 2011

For convertible notes, the only liquidity event we need be concerned with is an acquisition of the startup in the near future, before the maturity date; otherwise, the notes will convert to equity of one kind or another, and the eventual sale of that equity (in a public offering, acquisition, or private sale) is a different subject for another day.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

David Teten

OCTOBER 1, 2015

Not surprisingly, the list above also is ranked from least to most equity stake in an investment for the investor, relative to the cash they invest. How would one set up such a startup to eventually raise capital from outside VCs, who will be wary of ‘dead equity’ (i.e., equity that belongs to departed cofounders)? The cliffs?

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60

K9 Ventures

OCTOBER 10, 2017

Unless every aspect of product development is covered by founders who are only receiving equity, there are other parts of building a product that will require hiring highly qualified people. Q: Does a Pre-Seed require founders to give up more equity in the company? Q: How are most Pre-Seed deals structured?

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Jeff Hilimire

MARCH 4, 2014

I’ve had the fortune to do it twice, once to a private equity company and once to a public company. It’s easy to get caught up in the dollar signs and deal structure and overlook this important step in the process. Selling a business is an interesting ride. 10 things I wish I knew when I sold my business(es): 1.

Private Equity 61

Private Equity Acquisition Deal Structure Sales 61

David Teten

MAY 20, 2013

So he sold the owner some equity in his startup, which was worth a few million dollars when Mint exited. If we find the right partner, we can be flexible in deal structures to best align everyone’s interests. The obvious arrangement we’d suggest is to offer equity as a way to bridge what is likely a large short term price gap.

Naming 114

Naming Startup Venture Capital Portfolio 114

David Teten

MAY 20, 2013

So he sold the owner some equity in his startup, which was worth a few million dollars when Mint exited. If we find the right partner, we can be flexible in deal structures to best align everyone’s interests. The obvious arrangement we’d suggest is to offer equity as a way to bridge what is likely a large short term price gap.

Naming 114

Naming Startup Venture Capital Portfolio 114

grasshopperherder.com

SEPTEMBER 24, 2011

Piercing the Corporate Veil – Sweat Equity Consulting. But much like becoming a co-founder, getting paid sweat equity is essentially becoming an investor in the company. If you did, why would you be consulting for sweat equity instead of investing as a VC or for yourself? Three Card Monty Corporate Structures.

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41

Duct Tape Marketing

FEBRUARY 16, 2023

So maybe they would have some home equity they could pull out or some savings. Let's talk about some of the deal structures you've seen. Is it likely to be an individual person? And what kind of money would they have available? They're probably gonna put, you know, some kind of down payment, maybe let's say 20%. (07:47):

Technical Review 80

Technical Review Wisconsin Non-disclosure Agreement Salary 80

Tim Keane

AUGUST 20, 2009

Ask any of us who've experienced significant down rounds based on some or all of these things, and one begins to understand the cautionary nature of deal structures.  When there is the prospect of future rounds, sometimes evidenced by misses in the past, deal structures become more caution-driven.

Milwaukee 60

Milwaukee Bootstrapping Cram Down Deal Structure 60

Gust

OCTOBER 26, 2011

When a company is asked to make legal representations about its standing, prior equity and debt issuances, corporate governance formalities and so forth, if taken seriously, matters of “deferred maintenance” often surface and must be handled before closing.

Finance 79

Finance Term Sheet Covenant Accredited Investor 79

Entrepreneurs-Journey.com by Yaro Starak

JANUARY 21, 2011

Paid off properties also have equity that you can tap into when in need. Investment in small businesses require knowledge of transactions and the related aspects such as business valuation, due diligence, deal structuring / financing, contracts, etc.

Internet 80

Internet Technical Review Stock Due Diligence 80