Trending Sources

How VCs Think About Adding New Partners

Both Sides of the Table

After years of trying to persuade Kara Nortman to become a partner at Upfront Ventures I can officially announce now that she’s joined us effective immediately. People often ask me what VCs look for when we hire partners and many have asked how to become VCs themselves one day.

Who You Gonna Call? Partnering with Goliath: A Tale of Two Announcements

John O'Farrell

These two headlines sound pretty similar—“Small company partners with giant company to reach a bigger market”—but they led to two very different outcomes. In practice, however, most “David-Goliath” distribution deals turn out like our 2003 HP deal: great PR, but not much else.

Startup Blog: Take a Stand!

Taffy Williams

It may be around deal structure, testing or design of product, new hires, downsizing or firing, how much to spend on a program or some other issue. The deal terms are ones you as the CEO, entrepreneur, or employee know will cause great stress and even the possible demise of the company.

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

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.

Agile success generates great feelings

Taffy Williams

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. Yes, it is a bit like THIS!

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Bring something to the party when working with others

Taffy Williams

You want to develop a business relationship with a potential partner, investor, or strategic interest. Coming back to the topic, you must review your objectives and determine what you plan to do for your partner or business associate, not just what you want from the relationship.

Entrepreneurs experience piling on

Taffy Williams

For example, a company has an extremely exciting and valuable technology and finds that potential partners, investors, or consumers clamor for rights or access. Dealing with the negative events becomes crisis management and survival.

IPO 24

Who Invests In Investors: Homebrew LP Shares VC Performance Goals, Importance of Diversity & What They Look For In New Funds

Hunter Walker

The James Irvine Foundation joined us in Fund I and has been a great partner since. At Irvine, we have spent two decades building an approach to venture that we believe enables us to identify and partner with the best firms consistently, throughout cycles.

LP 37

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. Setting a structure and price in advance can also expedite the negotiation process, especially when it’s with multiple parties.

Dialing for Dollars

Taffy Williams

The funds come from a wide range of sourceslike VCs, Funds, Super Angels, Partners, and other business relationships. One greatway to get non-dilutive financing is by partnering a product you may not wishto develop or sell yourself. Reaching out tothem requires having a sales pitch that is product specific and demonstratesthe value of the product in general and to the possible partner. One local VC indicated they review more than 600 deals per year andinvest in around 6.

10 things I wish I knew when I sold my businesses

Jeff Hilimire

With my first sale, my partners and I focused all of our attention on the details of the sale (what the valuation would be, how would it be structured, etc) and very little about what would happen with us individually. 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 Tips for Startups Raising Money from Angels

VC Cafe

But here it’s not enough to relay on secondary research – get out there and speak to potential customers, partners and even competitors – gather evidence and interest. Deal structure – I could write a full post just on this, but some aspects that were brought up are the need to agree on a reasonable valuation, what investment vehicles are used (convertible debt vs stock, options and warrants and other non-dilutive mechanisms).

Startup Blog: 7 Questions You May Get from Potential Investors

Taffy Williams

Wednesday, April 20, 2011 7 Questions You May Get from Potential Investors If you have completed the steps outlined thus far, you have the proper materials to start your search for funding and partners. You never have to take the deal offered and can try to negotiate a better one.

Should You Sell Your Business? 7 Things to Consider

Inc Startups

Prior to the process, my business partner and I wrote down the criteria for the deal that we would accept. In the last few weeks of the deal, we were ready to back out because of a change in the deal structure.

'Show Me the Money' Tips for Business Sellers

Inc Startups

He or she is going to be your guide and partner through the sale process. Often, an experienced broker will take the Confidential Offering Memorandum to the lender in advance of finding a buyer to obtain a preapproval, including an acceptable deal structure.

NDA 7

Nymi

Launching Tech Ventures

Propose potential partnerships and deal structures. Fact finding vs. problem solving missions Partner Selection Do they have a meaningful problem? Nymi - Ecosystem Mapping & Business Development Okalo Ikhena Himani Jain What Is Nymi? It is a wristband that uses your unique cardiac rhythm to authenticate your identity, allowing you to wirelessly take control of your computer, your smartphone, your car and so much more.

A Summary of Current Trends in Canadian Mergers and Acquisitions - 2011

Recent Buzzes - VC Experts, Inc.

With keen international interest in Canada's resource sector, the return of financial buyers, strategic investors looking to pursue acquisitions as a means of increasing earnings, and the recent uptick in Canadian "mega-deal" activity, there is no better time to discuss the M&A trends unfolding in 2011. HOSTILE DEALS. s arrangement to collapse its multiple voting share structure, will continue in the coming year. Mark Adkins, Partner, mark.adkins@blakes.com.

Why Selling Your Company is Like Dancing With the Stars

Inc Startups

Every star is partnered with an experienced professional dancer who teaches them the dance steps and moves, and guides them through the complex dance routines. While it may look simple, one misstep could easily cost a business owner millions of dollars or scuttle the deal altogether.

Why Leave A Six Figure Corporate Job For Internet Entrepreneurship?

Entrepreneurs-Journey.com by Yaro Starak

I travelled all over the world wherever business deals were happening, gained tremendous experience and exposure to the Corporate landscape, and learned invaluable life lessons in my career. I worked out a similar deal the next go around, and the snowball started rolling from there. Investment in small businesses require knowledge of transactions and the related aspects such as business valuation, due diligence, deal structuring / financing, contracts, etc.

in search of.the ideal term sheet

Seed Stage Capital

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.

What Entrepreneurs Should do about Price Fixing

Both Sides of the Table

That is why I tell people not to shop deals too widely. So acknowledge it to yourself and be prepared to deal with it. When I was fund raising for my second company we had agreed a company-wide deal with Salesforce.com to use our product. We discuss deal structures.

Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

I’ve been looking for suggestions for an initial deal structure that is appropriate for the theoretical case of a trusted dev shop putting in $100k in market-value of services over a 6 month period in time. That said, I’m not sure of the most appropriate structure.

The downside of high valuations

StartupCFO

My partner JS does a thorough analysis of all this here. When it comes to deal structuring, the higher you push the valuation, the more “protections&# investors will build in. As I was looking through Fenwick & West’s Q3 Silicon Valley VC survey , there are clear signs that these protections are making their way into the deals that are getting done: - 20% of deals had multiple liquidation preferences. 53% of deals had participating prefs.

Build Your Startup on a Vacant Domain Name

David Teten

That’s why our portfolio company Plated.com decided to structure a lease option – they offered the prior owner a small monthly lease fee for 1 year, with an option to buy at the end of the year. Gary Millin, CEO of World Accelerator, said, “We recognize that we have a vast portfolio of underutilized assets in our parked domains and are actively seeking talented teams to partner with for development. There is no standard template for a deal with a domain name owner.

Build Your Startup on a Vacant Domain Name

David Teten

That’s why our portfolio company Plated.com decided to structure a lease option – they offered the prior owner a small monthly lease fee for 1 year, with an option to buy at the end of the year. Gary Millin, CEO of World Accelerator, said, “We recognize that we have a vast portfolio of underutilized assets in our parked domains and are actively seeking talented teams to partner with for development. There is no standard template for a deal with a domain name owner.

Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

A simple example would be if Customer A signs a one-year deal at $10,000 per month, and Customer B signs a three-year deal at $5,000 per month. Consistently delivering a deal per month in this progression gives you a total of 78 months of cumulative recognized revenue.

You Think It's About the Money. It's Not 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.