Startup Professionals Musings

SEPTEMBER 10, 2014

If all this checking sounds a bit paranoid and unnecessary, it may be time to take another look at some questionable investor practices and onerous term sheet requests. To get the terms you want, it’s better to start with your own term sheet. It’s no fun for either side.

Technical Review 257

Technical Review Due Diligence Term Sheet Offshore 257

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

MARCH 27, 2016

If all this checking sounds a bit paranoid and unnecessary, it may be time to take another look at some questionable investor practices and onerous term sheet requests. To get the terms you want, it’s better to start with your own term sheet. It’s no fun for either side.

Technical Review 120

Technical Review Due Diligence Term Sheet Offshore 120

David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. I believe that Revenue-Based Investing (“RBI”) VCs are on the forefront of what will become a major segment of the venture ecosystem. They usually already have quite material revenues, and/or top-tier equity VC backing.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Startup Professionals Musings

MARCH 12, 2023

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. The amounts from angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Berkonomics

MAY 15, 2014

A good example was during the negotiation of a term sheet. These usually involve a handful of angel investors, and a few entrepreneurs, who all want to build the very best term sheet for their exciting nascent enterprise. Angel investing today is similar to where venture capital investing was in the mid-1980s.

Term Sheet 91

Term Sheet Angel Groups Angel Investor Deal Structure 91

Startup Professionals Musings

JUNE 13, 2020

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. The amounts from angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314

www.xconomy.com

JUNE 9, 2012

New San Diego VC Firm Emerges as ‘The Moneyball of Venture Capital’. Here’s some big news for San Diego’s innovation economy: There’s a new venture capital firm in town—and its investment methodology represents a fundamentally different approach to the conventional business model for venture investing. Hacker News.

San Diego 40

San Diego Venture Capital Technical Review San Francisco 40

View from Seed

FEBRUARY 23, 2016

Once their mission and curation principles were in place, they can move faster and keep up with the daily demands to ship the newsletter without getting stuck debating what to include. Medium – Venture Capital
. Featured posts in CrunchBase Daily , StrictlyVC , and Dan Primack’s Term Sheet
. Nuzzel.com.

Curation 120

Curation RSS Term Sheet Technical Review 120

Steve Blank

APRIL 1, 2020

If you were expecting angel or venture funding get on the phone to your investor(s). Some VC’s are walking away from signed term sheets. The CFO should be on the phone to sources of additional capital. With more work from home happening, all of these services will see increased demand from companies.

South Korea 333

South Korea Salary Business Model China 333

ReadWriteStart

JUNE 1, 2020

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. It is essential to understand the funding structure stated in your term sheet and the advantages and disadvantages it may have for your business.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

This is going to be BIG.

OCTOBER 3, 2017

That's why, out of the 2,000 opportunities I saw this year, you and your company are one of the 8-10 I gave a term sheet to. Really, the biggest determinant of price is supply and demand--and so, more so than a qualitative judgement on your worth as a human being, consider this bid a data point. So, congrats!

Venture Capital 71

Venture Capital Dilution Term Sheet Lead Investor 71

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . 3) Raise capital. Fund/SPV management services specifically are provided by Assure Services and Proteus Capital. ff Venture Capital hired two full-time engineers to build out Totem.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Startup Professionals Musings

AUGUST 2, 2014

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. The amounts from Angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 266

Angel Investor Entrepreneur Venture Capital IRR 266

The Next Web

SEPTEMBER 13, 2013

The venture capital landscape in Asia is varied and complex, as most of the active firms on the continent are concentrated in just a few areas. The term sheets tend to be fairly standardized and straightforward as well. Term sheets are littered with many more obscure protective provisions and onerous terms.

Asia 132

Asia Silicon Valley India Term Sheet 132

Altgate

APRIL 22, 2009

 Today,  Wilson Sonsini  announced the launch of a " term sheet generator.  Today,  Wilson Sonsini  announced the launch of a " term sheet generator." "  It's basically a web tool that creates draft preferred financing term sheets for startups.

Term Sheet 52

Term Sheet Intellectual Property Venture Capital Hawaii 52

Both Sides of the Table

MAY 13, 2018

If an investor isn’t engaging then they’re not suddenly going to get a term sheet. For simplicity I’ll assume you’ve raised some money from angels or seed investors and you’re either raising an A round or a B round of venture capital. You can short-hand this as “engagement.” these are simply guidelines.

Term Sheet 332

Term Sheet Due Diligence Campaign Sales 332

David Teten

SEPTEMBER 2, 2017

It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. These are many of the steps I went through when I joined HOF Capital. Union Square Ventures ( [link] ). Good luck in finding your dream opportunity! If such advice is required, please contact a lawyer.

Private Equity 60

Private Equity Venture Capital Equity Partner 60

Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). If you don’t, please educate yourself on this site, Venture Hacks and the term sheet series by Brad Feld/Jason Mendelson, among other places.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Eric Friedman

AUGUST 18, 2021

I lovingly call him the curmudgeon of fintech – in this episode we go deep into how he is building a venture capital firm and practice, not just running a fund and how he views the world of fintech investing. One of the ones that really bothers me is how Venture Capitalists try and conflate what they do as being complicated.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Steve Blank

APRIL 9, 2009

To do that we will create end-user demand and drive it into the sales channel, educate the channel and customers about why our products are superior, and help Engineering understand customer needs and desires. We will accomplish this through demand-creation activities (advertising, PR, tradeshows, seminars, web sites, etc.),

Silicon Valley 259

Silicon Valley Technical Review RSS PR 259

Startup Professionals Musings

JUNE 5, 2016

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. The amounts from Angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 120

Angel Investor IRR Valuation Startup 120

www.vccafe.com

MARCH 11, 2013

Venture Capital Cafe > Startup Resources (Updated Mar 2013). on demand billing and fraud management. National Venture Capital Association â?? WSGR Term Sheet Generator. Orrick, Herrington Term Sheet Generator. Founders Institute Plain Preferred Term Sheet â?? About VC Cafe.

Software Review 53

Software Review Technical Review Startup 53

Steve Blank

NOVEMBER 5, 2009

Reply Raising capital - The 50 or so things you should read first | JonBischke.com , on November 9, 2009 at 10:59 am Said: [.] & & Raising Capital Pitch Perfect 4 ways to get automatically rejected by an angel investor Raising Money Using Customer Development Due Diligence Checklist Term Sheet Archives (from Brad [.]

Customer Development 262

Customer Development Developer Customer Silicon Valley 262

Steve Blank

JANUARY 4, 2010

Staring at us in the board meeting were three term-sheets from brand name VC’s and an unexpected buy-out offer from Google. In fact, Google’s offer for $15 Million was equal to the highest valuation from the venture firms. Lets take venture capital and grow this thing into a real business.”. The Scalable Startup.

Hockey Stick 276

Hockey Stick Venture Capital Startup Cofounder 276

Up and Running

MARCH 29, 2017

See Also: What Do Venture Capital Firms Want? I was looking for wisdom to help make the decision, and found a gem in a lecture from my venture capital professor at HBS. See Also: Demand Validation: How to Find Out If Customers Want to Buy Your Product. See Also: 17 Venture Capital Blogs You Should Be Reading.

Term Sheet 60

Term Sheet Venture Capital Liquidation Preference Valuation 60

The Next Web

FEBRUARY 27, 2014

Supply and demand. To start, let’s not forget about the obvious: the natural economic principles of supply and demand apply to valuing your business. your equity in a hot new patented technology business), the higher the demand (e.g., your equity in a hot new patented technology business), the higher the demand (e.g.,

Valuation 167

Valuation Forecast Seed Stage .Net 167

Both Sides of the Table

APRIL 3, 2010

This is part of my ongoing series on Understanding Venture Capital. I recently wrote a blog post on understanding how the size and age of a venture capital fund might affect you when you’re raising money. We used the Y Combinator open source term sheet. If you accept my terms you’re done.

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

Startup Company Lawyer

AUGUST 31, 2012

At the maturity date, there is a risk that investors may demand repayment. ” The theory is that the number of seed stage Series A deals led by venture capital firms is decreasing, meaning that it will be difficult for startups to raise a new round of financing. Form of Convertible Security Term Sheet.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

This is going to be BIG.

OCTOBER 10, 2014

That also includes 16 Brooklyn Bridge Ventures deals done and five agreed to term sheets. That also means that the best way you can move your price up is to create demand for your round. Venture Capital & Technology' Yes, it''s going to be a busy fourth quarter. The rounds are bigger, sure.

Pre-Money Valuation 146

Pre-Money Valuation Dilution Valuation Term Sheet 146

The Startup Lawyer

JUNE 9, 2010

The term sheet was pretty much a done deal, when the startup’s CEO demanded a salary of $25,000. The startup community focuses most of the term sheet discussion on liquidation preferences and anti-dilution , but startup CEO salary is nonetheless an important issue. The Importance of Startup CEO Salary.

Salary 99

Salary Term Sheet Liquidation Preference Liquidity Event 99

steveblank.com

JULY 8, 2011

signup, upgrade, trial pricing Zuora – online subscription management FeeFighters – find the cheapest credit card processors HealPay – Collections made easy Customer Support Tender – support, knowledgebase tool for your site GetSatisfaction - conversations between companies / customers.

Software Review 110

Software Review Startup Silicon Valley Analytics 110

Gust

OCTOBER 8, 2014

Entrepreneurs started demanding that VCs call their first-round financings “seed” rounds even if they were $3 million. I had very smart entrepreneurs where I gave the company $2-3 million and we raised anywhere between $3-5 million and when I put A-round in the term sheet they had their lawyers change it back to seed rounds.

Cap Table 136

Cap Table Silicon Valley Term Sheet Non-Compete 136

Professor VC

JULY 25, 2013

Mike Markkula presenting Steve Jobs with first investment in Apple I recently watched an excellent documentary on PBS, Something Ventured: Risk, Reward, and the Original Venture Capitalists. An entrepreneur received two Series A term sheets, one lead by an international investor and the other from SH.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Gust

OCTOBER 12, 2011

Last week , we took the plunge and began dissecting an example term sheet for a convertible debt financing round piece by piece. I’ll continue with more specific terms and wrap up next week with some thoughts about recent changes and trends for the future.

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

SoCal CTO

JULY 13, 2010

10 Ways To Be Your Own Boss - A VC : Venture Capital and Technology , June 18, 2010 The folks at Behance and Cool Hunting asked me to talk at their 99% Conference a couple months ago. Here are the top 30 along with a brief snippet from the post. had two occasions recently to review products which had clear market leadership.

Cofounder 175

Cofounder Technical Cofounder Term Sheet Startup 175