Haystack

JULY 4, 2019

Most folks who are not close to early-stage startups and new company formation would be surprised to discover that a high number of companies, after receiving funding from individuals or institutions, do not send updates to their investors. For me, I am pretty zen about this after six years of early-stage startup investment.

Early Stage 167

Early Stage Deal Flow Finance Metrics 167

Startup Company Lawyer

AUGUST 31, 2012

Over the past few years, convertible debt has emerged as a quick and inexpensive method for startup companies to raise money from angel investors and early stage venture funds. ” As a result, Ted introduced the Series Seed preferred stock documents as an alternative to convertible debt for early stage investments.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Both Sides of the Table

NOVEMBER 9, 2014

There’s another issue I can add to your list of things to be aware of – information rights. This is no different than a public company where of course most investors are not given detailed financial and performance information and when they are it is quarterly and after the fact. The reality is that you cannot.

SEC 352

SEC Venture Capital Early Stage Cofounder 352

Hippoland

AUGUST 21, 2016

Just providing dollars at the early stages of a round is helpful to jumpstart fundraising traction. Major investor / information rights? In fact, these are the investors that I personally like best! That being said, even if the prospective investor is not able to provide operational help, that can also be ok.

Technical Review 48

Technical Review Due Diligence Silicon Valley Portfolio 48

Startup Company Lawyer

MARCH 14, 2010

In addition, I think that a “peace treaty&# between early-stage investors and startup companies on standard terms (at least at a term sheet level) is a step in the right direction. Right of first offer on future financings. Information rights. Information rights. Registration rights.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

View from Seed

JANUARY 11, 2017

2) Is now the right time for us? All things being equal, seed and early stage startups are not usually well suited to take strategic investments. Startups at this stage are still seeking PMF and scalable growth, so their long-run strategic fit with a corporate VC is often still in flux.

Strategic Investors 120

Strategic Investors Post-Money Valuation Seed Stage Cofounder 120

OnlyOnce

APRIL 27, 2021

One thing to think about, particularly for early stage companies, is only giving new directors a 1 or 2-year vest on their first option grant, so you can make sure they’re a high value director…and so you can have the option of an easy exit (or re-up) in a shorter period of time than a traditional 4-year vest.

Vesting 48

Vesting Cofounder Startup Term Sheet 48