Startup Professionals Musings

OCTOBER 22, 2010

This is the dreaded “due diligence” process. In my view, understanding due diligence can only improve information flow, and leads to a better long-term partnership with your investor. In my view, understanding due diligence can only improve information flow, and leads to a better long-term partnership with your investor.

Technical Review 225

Technical Review Due Diligence Intellectual Property Private Equity 225

Startup Professionals Musings

JANUARY 18, 2016

What they don’t realize is that about half the investment deals fail to close at this stage, including mergers and acquisitions , during the due-diligence process. Remember that investors at this stage have heard primarily from the founder, and only reviewed written business plans and collateral. Solution readiness and quality.

Technical Review 120

Technical Review Due Diligence Intellectual Property Cap Table 120

Both Sides of the Table

AUGUST 28, 2012

Another VC called the co-founder & tech head – Parker Harris. There is no reason to part with your cap table or legal docs until you’re convinced that they’re actually committed to doing work with you in due diligence. ” Heading into a Term Sheet – Final Due Diligence. What did they say?

Technical Review 316

Technical Review Due Diligence Term Sheet Cap Table 316

Startup Professionals Musings

JANUARY 30, 2023

In my own experience with technical startup founders, I still find it hard to name one who was also good, or even interested in financials or business operations. When you do find potential investors, be sure to take the time to do reverse due diligence on them, as they are doing due diligence on you and your team.

Technical Review 373

Technical Review Software Review Due Diligence Entrepreneur 373

Startup Professionals Musings

APRIL 17, 2022

In fact, I would broaden the definition of partner from co-founder to “business partner.” The reason is that good attributes apply equally well to “external” partners, as they do to internal partners, like a co-founder or CTO. Thus you should do the same or more due diligence on educational background, previous work, and references.

Partner 385

Partner Software Review CTO Hire Cofounder 385

Gust

NOVEMBER 14, 2011

This is the dreaded “due diligence” process. In my view, understanding due diligence can only improve information flow, and leads to a better long-term partnership with your investor. In my view, understanding due diligence can only improve information flow, and leads to a better long-term partnership with your investor.

Technical Review 152

Technical Review Due Diligence Intellectual Property Private Equity 152

Startup Professionals Musings

JULY 15, 2019

In fact, I would broaden the definition of partner from co-founder to “business partner.” The reason is that good attributes apply equally well to “external” partners, as they do to internal partners, like a co-founder or CTO. Thus you should do the same or more due diligence on educational background, previous work, and references.

Cofounder 221

Cofounder Software Review CTO Hire Founder 221

Startup Professionals Musings

MAY 22, 2020

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Technical Review 436

Technical Review Due Diligence Burn Rate Sweat Equity 436

Gust

NOVEMBER 28, 2023

This shows the increasing sophistication of investors and founders, the increasing experience and publicity surrounding the advantages/disadvantages of various options, and the increasing availability of model documents and online generators for different choices.

Due Diligence 91

Due Diligence Term Sheet Common Stock Stock 91

Gust

NOVEMBER 28, 2023

The principal roles of the lead investor was to negotiate the terms of an investment with the founder of the startup. That’s what you as a founder will have, which is why it’s also known as founders’ stock. That’s what you as a founder will have, which is why it’s also known as founders’ stock. Here’s why.

Due Diligence 91

Due Diligence Term Sheet Common Stock Preferred Stock 91

View from Seed

JANUARY 30, 2020

One of the often neglected parts of fundraising is the process of doing due diligence on potential investors. But assuming success, a moment will come when a founder will have multiple funding options. When you do your VC diligence, here are some of the things to consider focusing on. Raising money is super hard.

Due Diligence 195

Due Diligence Partner Term Sheet Finance 195

View from Seed

APRIL 14, 2020

This led to a number of repercussions that most VC’s have lamented during this time, including higher prices, larger rounds, shoddy due diligence, and many companies raising large sums of venture capital that probably aren’t suited to VC funding. VCs are always founder focused no matter the market environment.

Early Stage 374

Early Stage Software Review Technical Review Due Diligence 374

NZ Entrepreneur

AUGUST 4, 2021

That’s why it’s important for founders to understand that the clearer you can articulate the opportunity and its potential risks – and proposed mitigations – the better equipped investors will be to assess your business as a viable investment. Due diligence, information memorandums & data rooms.

Technical Review 61

Technical Review Software Review Founder Due Diligence 61

Startup Professionals Musings

OCTOBER 14, 2022

For startups, the entrepreneur and founder is almost always the face of the company. In addition to goodwill justified by a great leader and an outstanding team, investors will use their due diligence process to assess the organizational structure and effectiveness as well.

Technical Review 323

Technical Review Due Diligence Valuation Leadership 323

David Teten

AUGUST 1, 2017

So I put together some notes on how to due diligence a management team, from the point of view of a prospective colleague. For ideas on what to ask, see The Master List: Questions to Ask Potential Co-Founders and 8 Issues You Need to Discuss with Your Startup Co-Founder. CULTURAL FIT. guest-posted at Entrepreneur.com ).

Technical Review 60

Technical Review Due Diligence Management Cofounder 60

Startup Professionals Musings

DECEMBER 22, 2017

In my activities as an angel investor, and my work with new ventures seeking investment, I find the “due diligence” stage to be fraught with the most risk. Most founders consider the story already told and the deal pending, so they aren’t sure what more then can do. Identify and resolve any pending personnel situations.

Due Diligence 148

Due Diligence Bankruptcy Angel Investor Stock 148

Startup Professionals Musings

FEBRUARY 18, 2023

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Burn Rate 207

Burn Rate Sweat Equity Technical Review Intellectual Property 207

The Startup Magazine

FEBRUARY 21, 2024

Arif Bhalwani is the co-founder and CEO of Third Eye Capital (TEC) in Toronto, Canada. While these conditions might seem unfavorable, they create a fertile ground for private credit firms that excel in rigorous due diligence and crafting structured deals that mitigate risks effectively. The firm has made more than $4.5

Technical Review 126

Technical Review Due Diligence Bankruptcy Intellectual Property 126

Startup Professionals Musings

APRIL 13, 2020

In any case, before you select a specific outsourcing or contract alternative, there is no substitute for doing thorough due diligence. If you are a typical startup operation, consisting of an unpaid founder and co-founder, both working part-time, outsourcing is not likely the solution to your resource constraints.

Intellectual Property 306

Intellectual Property Non-disclosure Agreement Software Review Technical Review 306

Both Sides of the Table

SEPTEMBER 15, 2022

But it will be patiently deployed, waiting for a cohort of founders who aren’t artificially clinging to 2021 valuation metrics. Pitchbook estimates that there is about $290 billion of VC “overhang” (money waiting to be deployed into tech startups) in the US alone and that’s up more than 4x in just the past decade. What is a VC To Do?

Technical Review 416

Technical Review Pre-Money Valuation San Francisco Valuation 416

Startup Professionals Musings

DECEMBER 16, 2013

If you really want to impress a startup founder as a potential employee, or you want to be a smart investor, you need to know the right questions to ask. These are the questions that get past the hype of a founder “vision to change the world,” and into the realm of real business strengths, weaknesses, and current health. Now you know.

Due Diligence 253

Due Diligence Sweat Equity Intellectual Property Burn Rate 253

The Startup Magazine

SEPTEMBER 15, 2020

This is the first piece of paper that a founder sees from a venture capital firm when they are communicating their interest in investing in the company. The corporate governance section defines the power distribution between the founders and the investors. Due Diligence and Closing the Deal. Understand VC Term Sheets.

Venture Capital 143

Venture Capital Technical Review Software Review Security 143

VC Cafe

JANUARY 30, 2023

” – Andrew Carnegie As a founder, one of the key tasks in raising capital is to effectively communicate the value of your company to investors. It’s also worth checking YC’s series A due diligence checklist. “Organization is the foundation of success.”

Technical Review 103

Technical Review Due Diligence Cap Table Startup 103

The Startup Magazine

MARCH 14, 2022

At this stage, the founder mainly raises funding from their sources or family and friends. At this stage, since the company has created a presence for itself, the founder turns to Venture Capitalists to secure funding for further company growth. After doing the requisite due diligence, investors can select their preferred companies.

Technical Review 138

Technical Review Due Diligence India Startup 138

The Startup Magazine

MARCH 30, 2022

A well constructed business plan , which not only shows ambition, but demonstrates that the founders have an understanding of the market pressures they have to overcome and the kinds of customers they are hoping to win, is a must. Rigorous research is your responsibility.

Technical Review 129

Technical Review Due Diligence Angel Investor Startup 129

The Startup Magazine

AUGUST 11, 2023

At the pre-seed stage, when the creator has a concept, the founder’s background, educational qualifications, domain experience, previous ventures, market size, and the complimentary talents brought by the cofounders are some of the most critical variables to consider before investing in a startup.

Seed Stage 119

Seed Stage Technical Review Early Stage Due Diligence 119

Startup Professionals Musings

FEBRUARY 11, 2012

Due diligence should always be a two-way street. A while back, I published an article on “ Startup Due Diligence Is Not a Mysterious Black Art ,” describing what investors do to validate your startup before they invest. I’ve had startup founders tell me that it’s only about the color of the money, but I disagree.

Due Diligence 241

Due Diligence Entrepreneur Offshore Angel Groups 241

Startup Professionals Musings

FEBRUARY 27, 2021

More and more entrepreneurs are hearing about the successful graduates and investors queued behind a few well-known startup incubators, including Y Combinator, TechStars, and the Founder Institute. Then it’s time for due diligence on the incubators in your area, to see who has the track record and credentials you need.

Incubator 366

Incubator Technical Review Due Diligence Venture Capital 366

Startup Professionals Musings

NOVEMBER 19, 2018

I often wonder how many more startups would succeed if their founders could master the art and science of delegation. In my role as mentor and advisor to many founders, I consistently fail in convincing them of the power in wise delegation. Not trusting key team members to get required results.

Leadership 241

Leadership Technical Review Due Diligence Founder 241

The Startup Magazine

DECEMBER 13, 2018

As part of The Startup Magazine Female Founder Series, we interviewed Ms. Get a company ready for sale: per due diligence work and support during the sale process. As you have a history of building early stage companies, what is the most important thing you tell startup founders? Gabriela Rodil. Gabriela Rodil, CEO.

Technical Review 84

Technical Review Founder Due Diligence Early Stage 84

Startup Professionals Musings

JANUARY 15, 2020

For startups, the entrepreneur and founder is almost always the face of the company. In addition to goodwill justified by a great leader and an outstanding team, investors will use their due diligence process to assess the organizational structure and effectiveness as well.

Valuation 311

Valuation Technical Review Due Diligence Leadership 311

TechEmpower

AUGUST 21, 2023

Due diligence prep: You’re coming up on a funding round or looking at a potential exit. If you’re a CEO, product leader, investor, or a founder looking for investors, a technical review conducted by a neutral, experienced third party will help you discover what’s really happening and what’s needed to make improvements.

Technical Review 260

Technical Review Development Team Review Software Review Architecture 260

The Startup Magazine

AUGUST 21, 2023

With so many other challenges to address, many founders regard using a lawyer to draft bespoke commercial contracts as a luxury rather than a necessity. This means that founders and third party developers and suppliers (including freelancers) need to have assigned the IPR to the business in writing.

Technical Review 104

Technical Review Intellectual Property Due Diligence Early Stage 104

Both Sides of the Table

MAY 24, 2018

Find one that’s on the earlier-stage size or one that raised a long time ago and never scaled and get to know the founder & CEO. Find a portfolio company or two that they’ve invested in. They can likely give you the entire playbook of the partnership if you build a meaningful relationship with them and they trust you.

Technical Review 314

Technical Review Due Diligence Partner Term Sheet 314

Gust

DECEMBER 8, 2013

If you really want to impress a startup founder as a potential employee, or you want to be a smart investor, you need to know the right questions to ask. These are the questions that get past the hype of a founder “vision to change the world,” and into the realm of real business strengths, weaknesses, and current health. Now you know.

Due Diligence 174

Due Diligence Sweat Equity Intellectual Property Burn Rate 174

The Startup Magazine

DECEMBER 13, 2018

As part of The Startup Magazine Female Founder Series, we interviewed Ms. Get a company ready for sale: per due diligence work and support during the sale process. As you have a history of building early stage companies, what is the most important thing you tell startup founders? Gabriela Rodil. Gabriela Rodil, CEO.

Technical Review 65

Technical Review Founder Due Diligence Early Stage 65

VC Cafe

FEBRUARY 27, 2023

Most founders reported (in several different surveys) that knowledge and belief in their industry/sector and personal connection is one of the key reasons they would choose one investor over another. See the recent reports by Frontline Ventures and Creandum on what makes founders choose one offer over another.

Venture Capital 215

Venture Capital Technical Review LP Institutional Investors 215