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Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First

Both Sides of the Table

That means that the likely have a minimum of $15 million in liquidation preferences. It will usually be higher because the liquidation preference has a dividend so if the deal is long in the tooth assume that the liquidation preference might be $20-22 million. Take liquidation preferences head on.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors. Second a liquidation preference and a participation.

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Working for Equity Instead of Cash

genylabs.typepad.com

I wont bother going into details on start-up financing terms ( see this post for an overview of typical VC terms) except to say if you dont know and understand: the firms cap table and valuation. where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have.

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ProfessorVC: Negotiating an Angel Deal in your PJ's

Professor VC

One comment made by Jason was that angels tend to be less sensitive than VCs on valuation and can potentially make it difficult to get a venture financing done at acceptable valuation. Email This BlogThis! Labels: Angel Investors , fundraising , term sheets , venture capital , venture financing. Steve Bennet. at 11:15 AM.

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Using warrants to pump up your VC valuation

www.mattbartus.com

I just worked on a financing for a company that received a term sheet from a group of VCs at a $7 million pre-money valuation. ” Share this: Facebook Twitter Email Reddit StumbleUpon. I've just seen many startups unhealthily focus on the valuation versus things such as the liquidation preference or board control.

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Top 30 Startup Posts in June 2010

SoCal CTO

How-to learn about angel/vc term sheets - Gabriel Weinberg , June 28, 2010 I think every startup entrepreneur (and angel investor) should have a good understanding of financing term sheets. liquidation preference. You can also email us at ha@hackerangels.com. Yes, even bootstrappers. For the foreseeable future.

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New Plain Preferred Term Sheet

www.founderinstitute.com

Connect with HU via email at CONNECT@HarrisburgU.edu to learn more about HU and its entrepreneurship and mentoring programs, too. He has been actively involved in merger, acquisition and disposition transactions with a combined value of over $1 billion, and financing/investment transactions and securities offerings worth over $600 million.