Startup Blog: Take a Stand!

Taffy Williams

Startup Blog Steps to consider to start and grow a company. 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. You can also find him in the group Startup Group on Linkedin.

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

As the seed-stage startup fundraise process has received more transparency in recent years, ranging from published advice on how to raise seed capital to increased availability through AngelList, Funders Club, and various accelerator programs, I’ve noticed another trend emerging.

Trending Sources

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.

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. Agile emotions entrepreneur Startup Think Agile

Agile 51

10 Tips for Startups Raising Money from Angels

VC Cafe

This summer, I had the pleasure to be a mentor at the Entrepreneurship Summer School , an elective at London Business School (my alma mater) where students are tasked with testing whether their startup ideas can turn into a fundable business over the course of three months. Luckily, a lot of the material overlapped with my presentation from last year on “ how to make your startup attractive for investors “ Check out the tips for raising funding from angels after the jump. .

How VCs Think About Adding New Partners

Both Sides of the Table

Startup CEO experience (Founded P.S. XO along with my good friend Soleil Moon Frye. But there are tons of great startup folks so you need a narrower filter. 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.

Entrepreneurs experience piling on

Taffy Williams

Piling on is an event that may occur to entrepreneurs on their startup playing field. Developing great business deals when multiple companies want to partner allows for optimization of the deal structure to provide the maximum return.

IPO 24

The Pre-Seed FAQ

K9 Ventures

They talk about how deal sizes and stages were changing even back then. Well, enter the Pre-Seed round, where the startup raises closer to $500K. Likewise in startups, companies need to work with the capital that is appropriate for their stage. Q: How are most Pre-Seed deals structured? That said, you will find Pre-Seed deals in both flavors — Notes and Equity. One of the people I respect the most in the VC/PE media ecosystem is Dan Primack.

Later-stage rounds and “setting the bar too high”

Chris Dixon

I recently had a number of conversations with CEOs of later-stage startups (generating significant revenue) that went something like this. These are negotiable terms and startups with momentum should be very careful about giving them away. startups

Keep Term Sheets Simple for Quicker Cash to Spend

Startup Professionals Musings

Remember a term sheet agreement is not a deal until the check clears. It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists.

Knowing When It’s Time To Sell Your Startup

YoungUpstarts

For years, the most desirable exit strategy for startup companies was to go public through an initial public offering. Today, many startups are succumbing to the temptation to sell their companies early. This startup offered free peer to peer on-line phone service.

Finding Investors is highly dependent on your ability to network

Taffy Williams

Startups always are seeking funding, the task that is a never-ending battle. The deal structures will vary significantly dependent on their experience investing in early stage companies. You can also find him in the group Startup Group on Linkedin.

Startup Blog: 7 Questions You May Get from Potential Investors

Taffy Williams

Startup Blog Steps to consider to start and grow a company. 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. Yep, You and Your Startup Are Topics in the Rumor.

Dialing for Dollars

Taffy Williams

As statedbefore, your startup will have little or no money for the first severalmonths. Thesehighly experienced people are some of the best employees you may ever havebecause they may work for equity, provide the much needed skill sets, and theyserve as mentors for your startup. 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.

Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

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. This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing. Assuming a conventional deal that is structured as a convertible note, the other term in this paragraph is the interest rate.

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. Behind the headlines – a deal with teeth. SUNNYVALE, Calif.,

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.

How to value your company for sale (Part 2)

A Smart Bear: Startups and Marketing for Geeks

There are plenty of folks who wouldn’t sell their company for a billion dollars; Jason Fried and Joel Spolsky are public examples from the bootstrapped startup world. What if someone offered you a million dollars for your startup, right now, check in hand — would you take it?

allensblog: "Fully-Diluted"

Allen's Blog

Thoughts from a startup sherpa. In a deal recently, the term sheet offered by the prospective investor contained a reference to the term: "fully-diluted" The company accepted the term sheet and the lawyers drafted the documents. While that deal recovered and closed, it highlights the need for entrepreneurs and investors to understand when so-called defined terms like "fully-diluted" actually need explicit definition in the term sheet. allensblog.

Build Your Startup on a Vacant Domain Name

David Teten

This is part 2 of a 2-part series on domain names and startups; part 1 was “ Should a Startup Spend VC Funding on a Domain Name? ”. I’ve written in the past about how to identify a great startup opportunity. The last thing a startup needs is MORE risk. 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.

Build Your Startup on a Vacant Domain Name

David Teten

This is part 2 of a 2-part series on domain names and startups; part 1 was “ Should a Startup Spend VC Funding on a Domain Name? ”. I’ve written in the past about how to identify a great startup opportunity. The last thing a startup needs is MORE risk. 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.

The 10 Best Real Estate Schools Compared: Meet the Winner!

Blogtrepreneur | Entrepreneur Blog

Finance and deal structuring, market analysis, site planning, and project management. The program framework focuses on the impacts of taxation, risk, financing structure, governmental constraints, and market context.

Are Investors Being Unreasonable? - Startups and angels: Along the.

Tim Keane

Startups and angels: Along the way to success. 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.    Many I know will actively seek deals to work on that are run by fun, engaging people who are eager to grow the business and know what they're doing.  Funding startups. Startup ideas. Resources for startups.

Walker Twitter Highlights: August 11th – 21st

Scott Edward Walker

I’m using Twitter as a form of micro-blogging to share interesting blog posts, articles and podcasts relating to entrepreneurship and startups, M&A and legal issues. prAYlf Quora-Related Quora: What deal structure should be in place for a friend/family investment of < 20k in your startup? Twitter Highlights bubble data founders Paul Graham raising money redemption rights silicon valley startup VCs Warren Buffett

Knowledge Is Power: Convertible Note Financing Terms, Part V

Gust

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. This is the norm for West Coast deals, but it’s often the case in dealing with East Coast investors (more commonly for VC financing rounds rather than angel seed rounds) that the lead investor wants its lawyers to draft the documents.

Knowledge Is Power: Convertible Note Financing Terms, Part IV

Gust

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. if the startup is acquired before the notes mature or convert, investors will be paid 2X or 3X their investment).

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.

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.

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.

A Primer on Angel Investment ‘Simple Term Sheets’

Startup Professionals Musings

Remember a term sheet agreement is not a deal until the check clears. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists.

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. 40 invites for startups (UPDATE: All out!

Keeping a Seed Financing Round Open

The Startup Lawyer

Startups don’t want to wait until every investor is ready before closing on a seed financing round. Second, what startup wants to wait on cash? But in order to properly accomplish this, your startup will have to keep the round “open&# via the deal documents. But remember that while a lot of these deal structures are standard — each individual deal is unique.

The Corrosive Downside of Acquihires

Inc Startups

For the past five years or so Google, Facebook and a handful of tech industry giants have been quietly buying scores of early-stage startups for their talent. Almost certainly the startup would have raised some capital. And will investors allow a deal to happen in the first place?

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.

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.