YoungUpstarts

NOVEMBER 27, 2018

There’s a trick or two that most seasoned investors keep tucked away for when they want or need to feel secure in a project they plan on investing in, which hopefully has some chance of achieving success down the line. Secure the financial investment plan. Evaluate the marketing and monetization strategies set in place.

Early Stage 138

Early Stage Cofounder Startup Security 138

YoungUpstarts

MAY 14, 2018

Think of financing an acquisition as an exercise with two parts that work in concert: 1) structuring a desired deal with a suitable target and 2) obtaining the funding. Structuring the Desired Deal. Structure the deal so that the acquisition works by simply continuing the performance of the businesses “as-is.”

Acquisition 109

Acquisition Finance Raleigh Mezzanine 109

YoungUpstarts

MAY 17, 2019

The opportunity: Use this as a negotiating point when bargaining for the deal. If the business IS the business owner, then that person needs to be part of the deal. Structure the buy-out to include an employment contract or consulting agreement, as well as an earn-out.

Due Diligence 163

Due Diligence Forecast Deal Structure Valuation 163

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. As with so many subjects in law and finance, mastering the jargon is half the battle.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

View from Seed

OCTOBER 21, 2014

Sharing these pricing expectations early with potential lead investors fundamentally qualifies your conversations, but it also runs the risk of prematurely losing a potential financing partner, or else it can reduce options to maximize your fundraise outcome.

Valuation 336

Valuation Founder Seed Stage Angel Investor 336

Scott Edward Walker

DECEMBER 13, 2018

We had a busy 2018, including closing several significant M&A transactions and financings. How is the Deal Structured? The deal is typically structured as an asset purchase (as opposed to a stock purchase or merger) — though the acquirer often does not actually want the startup’s IP and/or other assets.

Founder 45

Founder Merger IP Liquidation Preference 45

David Teten

MAY 20, 2013

Another route is to approach a lender like Domain Capital that is familiar with the industry and will finance the domain at rates far better than traditional financing. If we find the right partner, we can be flexible in deal structures to best align everyone’s interests.

Naming 114

Naming Startup Venture Capital Portfolio 114