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. Startup Blog Steps to consider to start and grow a company. Basics are provided to help entrepreneurs.

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

David Teten

I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. That said, I’m not sure of the most appropriate structure.

My First Investment

A VC : Venture Capital and Technology

They had negotiated a deal to purchase an editor called BRIEF and a version control package whose name escapes me (might have been VCS?) So I negotiated a deal to invest the funds into the company for a revenue share on the sale of both products plus a warrant to buy stock in SDC. SDC ran into financial difficulties and although the sales of BRIEF and the version control software product were doing fine, they could not make the royalty payments.

How VCs Think About Adding New Partners

Both Sides of the Table

Operating experience (Helped run parts of CitySearch & UrbanSpoon, tons of product management experience, Board of Hatch Labs which helped spawn Tinder). In Kara’s case I got to see her work on deal structuring first hand having worked closely with her on her board at P.S. XO.

Financing Acquisitions: Keys to Structuring the Deal And Obtaining The Funding

YoungUpstarts

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. Of course, no deal goes down without funding. by Kenneth H.

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

Hunter Walker

Similarly, a GP might be in the middle of great flow, but we need to have conviction that they can identify the right deals, structure creatively, and negotiate effectively.

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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.

The Corrosive Downside of Acquihires

Both Sides of the Table

Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. And wants to structure a huge payout for the employees that will remain. And will investors allow a deal to happen in the first place.

Startup Business Development Strategies: 7 Tips For Putting.

Seed Stage Capital

skip to main | skip to sidebar 24 January 2010 Startup Business Development Strategies: 7 Tips For Putting Together Stellar Deals Business development is fun. A few tips for startups doing deals: 1. Introduce competition into every deal. Be operationally ready to do a deal.

Notes on the acquisition process

Chris Dixon

But for product and tech acquisitions especially, it is often about getting the attention of the right people at the acquirer. Sometimes the right person is corp dev, other times product or business unit leads, and other times C-level management. - Develop relationships with key people – corp dev, management, product and business unit leads. Moreover, some public companies insist that you don’t talk to employees until the deal is closed or almost closed.

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

John O'Farrell

Our 2003 deal with HP didn’t generate a single dollar in revenue, whereas our 2006 agreement with Cisco drove tens of millions of dollars in sales and helped to make Opsware the uncatchable leader in data center software. So was the product: NAS. Cisco-branded product.

The Pre-Seed FAQ

K9 Ventures

They talk about how deal sizes and stages were changing even back then. If it doesn’t have the product fully baked yet? A Seed round today — like the Series A round of yesteryear — requires some kind of traction or product. They shouldn’t even be looking for a fully built product. Pre-Seed financing is typically used to accomplish two things: build a team, and build an initial product and prototype. Q: How are most Pre-Seed deals structured?

Dialing for Dollars

Taffy Williams

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. Having a business advisorand a great corporate counsel is important to the final deals structure. One local VC indicated they review more than 600 deals per year andinvest in around 6.

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.

Bring something to the party when working with others

Taffy Williams

In a different situation, a prospective partner asked a company for a term sheet for a deal. The deal was to take place after a study was completed. The sides had not defined the costs contributed by each side, for the product development.

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.

What Entrepreneurs Should do about Price Fixing

Both Sides of the Table

So to be clear I think in the overwhelming majority of cases these are diligence calls to feel out the opportunity in which price discussions exchange hands more as a by-product of the call than the intention of the call. That is why I tell people not to shop deals too widely.

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. Fear of the unknown can be crippling for productivity and stability within the organization.

Include Deal Terms or Not?

Mark Birch

I had a discussion the other night with an entrepreneur about whether to include specific deal terms in the pitch deck or investor meetings. There are seven main points to consider when talking about the structure of the deal: Raise – The amount of capital you are raising.

Knowing When It’s Time To Sell Your Startup

YoungUpstarts

This deal-of-the-day service was founded in November 2008 and quickly became a sensation. The deal closed only four months later in August of 2012. Negotiating a different deal structure could have prevented the price from dropping. Unique social networking product.

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.

'Show Me the Money' Tips for Business Sellers

Inc Startups

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. Choosing the right broker will make a big difference in the ultimate success of your business sale.

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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. In the end, Plated was able to use the domain to prove out its minimal viable product for a nominal amount of cash, raise capital, and purchase the domain in full. If we find the right partner, we can be flexible in deal structures to best align everyone’s interests.

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. In the end, Plated was able to use the domain to prove out its minimal viable product for a nominal amount of cash, raise capital, and purchase the domain in full. If we find the right partner, we can be flexible in deal structures to best align everyone’s interests.

Nymi

Launching Tech Ventures

Propose potential partnerships and deal structures. Ecosystem Challenges Ahead Delivering value to Nymi’s customers requires other companies to be on board and have their products integrate with Nymi. It’s an independent, parallel track from the product development itself, but a critical one. Nymi - Ecosystem Mapping & Business Development Okalo Ikhena Himani Jain What Is Nymi?

Do You Deserve Investment Capital?

Inc Startups

In my last column , we covered the questions you should ask to help determine whether a venture capital or private equity firm is a structural fit for you. ” For example, my company had great success with our first software product.

Startup Blog: 7 Questions You May Get from Potential Investors

Taffy Williams

This can happen based on a great deal with a partner, positive data from proof-of-concept, a major advancement in development, or other such value creating events. If you are dealing with a lead investor, they usually go by the “golden rule; I got the gold I set the rules.&#

The Corrosive Downside of Acquihires

Inc Startups

The Aqui-hire Business Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. And wants to structure a huge payout for the employees that will remain. And will investors allow a deal to happen in the first place?

Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

Three Card Monty Corporate Structures. This is my least favorite thing in the world, being offered sweat equity in a corporate structure that is unnecessarily convoluted. If you’re in a complex structure with several multinational entities, that risk is compounded.

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.

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

Cracking the Code

Like SaaS products themselves, we now intend for these laws to be periodically refined through major releases to reflect the changing landscape of the SaaS world. Save Asia for post-IPO Single instance, multi-tenant, single datacenter - Have only one version of the code in production.

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.