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 IRR 68

Startup Professionals Musings

SEPTEMBER 26, 2015

Perhaps they're way off in their valuation (usually far too high), or paralyzed by fear at seeing the other terms, because they have no idea what's normal, and what's worth a fight to the death (their startup's). Investors, on the other hand, look at the money figure, and even the equity, as the easy part.

Term Sheet 120

Term Sheet Demand Preferred Stock Liquidation Preference 120

Both Sides of the Table

SEPTEMBER 25, 2010

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. He’s fine with equity provided it’s cheap to paper it legally. Tags: Raising Venture Capital Startup Advice Tech Market Analysis Term Sheets.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Startup Professionals Musings

JANUARY 27, 2012

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from either. Your best strategy is to bring your own term sheet to the negotiation as a starting point. Define equity type.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 223

Startup Professionals Musings

SEPTEMBER 10, 2014

Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. 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.

Technical Review 257

Technical Review Due Diligence Term Sheet Offshore 257

Startup Professionals Musings

SEPTEMBER 14, 2010

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from an angel, either. Your best strategy is to bring your own term sheet to the negotiation as a starting point. Define equity type. Marty Zwilling.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

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. Though RBI will displace some traditional equity VC, its much bigger impact will be to expand the pool of capital available for early-stage entrepreneurs. . All term sheets are a negotiation.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

David Teten

JANUARY 19, 2021

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. On average, founders own just 43% of equity by Series B , declining thereafter. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

The Next Web

FEBRUARY 15, 2015

If you haven’t read the first part on equity term sheets, I strongly recommend doing so before moving on. For a general introduction to term sheets and the trade-off between high valuation and complex investment structure, please refer to the introductory post to the guide.

Term Sheet 60

Term Sheet Equity Liquidation Preference Valuation 60

Gust

OCTOBER 17, 2011

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from either. Your best strategy is to bring your own term sheet to the negotiation as a starting point. Define equity type.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

Startup Professionals Musings

MARCH 27, 2016

Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. 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.

Technical Review 120

Technical Review Due Diligence Term Sheet Offshore 120

ReadWriteStart

JUNE 1, 2020

Forms of funding. ? Equity investment. Equity investment is the most popular and most talked-about avenue for startup funding. These investments are made instead of shares or equity in your startup. Equity investors. The third source of funding is from equity investors. Stages of Equity-based funding. ?

Startup 150

Startup Elevator Pitch Entrepreneur Seed Stage 150

The Next Web

FEBRUARY 7, 2015

In the introductory post to my term sheet guide, we covered a general introduction to term sheets and the trade-off between high valuation and complex investment structure, as well as focused on the basics of a convertible loan. Andrej Kiska is an Associate at Credo Ventures.

Term Sheet 60

Term Sheet Equity Valuation Web 60

Mucker Lab

JUNE 23, 2014

There is no word more sacred and yet over-used than “term sheet” in the entrepreneurial circle. The pursuit of the mythical VC term sheet has blinded entrepreneurs from the real goal of building a business: revenue, customers, users, engagement and retention. It’s validation. Continue at Techcrunch. Venture Creation'

Term Sheet 60

Term Sheet Retention Equity Security 60

View from Seed

APRIL 30, 2015

Glen Mello: Venture debt is a good complement to equity. It’s generally got a lower cost compared to equity capital and can help support growth. So it makes it a lot more challenging when you have debt on the books that isn’t as longer term as equity. In terms of negotiation, there are always hot buttons.

Term Sheet 120

Term Sheet Equity Startup Warrant 120

ReadWriteStart

MARCH 31, 2020

According to Ben Narasin , “in 2020, investors will require firmer governance and oversight structures to safeguard against negative impact and ensure these protections are mandated in their term sheets.”. This may probably drive entrepreneurs to alternative funding options, such as equity crowdfunding.

Technical Review 175

Technical Review Artificial Inteligence Startup Term Sheet 175

Startup Company Lawyer

AUGUST 31, 2012

Quick answer: convertible equity (or a convertible security) is convertible debt without the repayment feature at maturity or interest. ” In response, Seth Levine wrote a very thoughtful post on convertible debt versus equity. Fred Wilson has been openly critical of convertible debt , and prefers priced equity rounds.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Early Growth Financial Services

MARCH 13, 2014

getting the first term sheet can be a critical milestone in nurturing a successful business. Things to keep in mind: Anticipate investors’ concerns and information requirements; Be aware of the pitfalls; remember that all agreements are Conditional, with the terms subject to change. What is a term sheet?

Term Sheet 55

Term Sheet Equity Valuation Founder 55

Early Growth Financial Services

DECEMBER 4, 2014

But do you know what to do once you’re asked to sign a term sheet? And a good lawyer can be a real advocate for you: by keeping negotiations on track, explaining terms, and making sure any deal you sign doesn’t have problematic (and costly) clauses that could leave you at risk. You came, you pitched, you conquered.

Term Sheet 51

Term Sheet Liquidation Preference Vesting Option Pool 51

The Startup Lawyer

AUGUST 24, 2010

Just like the preferred equity financing process, the convertible debt financing process can start with a term sheet, rather than a full set of financing documents. Convertibility : What amount of equity financing is required to trigger automatic conversion of the convertible notes to equity (i.e., 2X/3X, etc.)

Term Sheet 62

Term Sheet Pre-Money Valuation Liquidity Event Warrant 62

Both Sides of the Table

MAY 24, 2018

You company is the product and you’re selling an equity ownership in your company but much more broadly you’re selling trust & confidence that you’re going to build something enormously valuable and that you’re going to be enjoyable to work hand-in-hand with over the coming decade of each other’s lives.

Technical Review 314

Technical Review Due Diligence Partner Term Sheet 314

Startup Professionals Musings

JULY 16, 2023

A few, like Silicon Valley Bank (SVB), despite recent failures, actually do provide management services to startups, invest in startups, or provide early-stage venture capital, but that is not called an investment service and is part of a function called Emerging Technologies, or sometimes Private Equity.

Early Stage 182

Early Stage Silicon Valley Private Equity Initial Public Offering 182

Startup Professionals Musings

FEBRUARY 4, 2012

After you have successfully attracted angels or venture capital with your business case, your million dollar product idea, and you have a signed term sheet, there is still one more hurdle to overcome before investors write the check. This is the dreaded “due diligence” process.

Technical Review 237

Technical Review Due Diligence Intellectual Property Private Equity 237

YoungUpstarts

OCTOBER 28, 2015

Investors typically negotiate from a term sheet, which if not handled properly can create problems that can hurt or kill the startup’s chances when they do their Series A round of funding. They also need to decide whether to structure terms as an equity deal or a convertible security deal. Convertible Securities.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

Startup Professionals Musings

OCTOBER 26, 2020

A few, like Silicon Valley Bank (SVB), actually do provide management services to startups, invest in startups, or provide early-stage venture capital, but that is not called an investment service and is part of a function called Emerging Technologies, or sometimes Private Equity.

Silicon Valley 362

Silicon Valley Private Equity Initial Public Offering Term Sheet 362

YoungUpstarts

OCTOBER 12, 2017

For many startups this results in a need to raise additional financing through debt or equity arrangements. Obtaining term sheets, note agreements, or even emails from lead investors stating their intentions to continue funding the entity may help support management’s assertion that they can raise more capital.

San Francisco 114

San Francisco Forecast Early Stage Term Sheet 114

www.mattbartus.com

SEPTEMBER 24, 2011

Equity for Consultants – Keep it Simple! posted Feb 3 in Equity , People issues. for every hour works, consultant accrues [hourly wage]in debt that will convert to equity in the next round). Is it atypical for founders to vest more than 25% of their equity after one year? Term Sheets. Quora Answers.

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40

Startup Professionals Musings

JANUARY 17, 2015

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. Startup equity investments imply a long-term business relationship, lasting an average of five years.

Technical Review 120

Technical Review Due Diligence Startup Term Sheet 120

Gust

NOVEMBER 11, 2011

Angel investment events where the group investment is supposed to go to the winner, but the winner ends up hating the term sheet. Usually these term sheets involve convertible notes, which are supposed to convert to equity at the next round of financing, like when the serious venture capitalists do a Series A.

Software Review 79

Software Review Term Sheet Due Diligence Angel Investor 79

chrischandler.name

NOVEMBER 1, 2010

If you’ve considered finding and asking a developer for his or her time in exchange for sweat equity, I’m going to strongly advise you against it. All the engineers I trust to execute a project swiftly, professionally and with quality, especially under startup conditions, will not touch an upfront equity deal with a 10-foot pole.

Equity 40

Equity Developer Entrepreneur Syndicate 40

Startup Professionals Musings

OCTOBER 22, 2010

After you have successfully attracted angels or venture capital with your business case, your million dollar product idea, and you have a signed term sheet, there is still one more hurdle to overcome before investors write the check. This is the dreaded “due diligence” process.

Technical Review 225

Technical Review Due Diligence Intellectual Property Private Equity 225

David Teten

AUGUST 19, 2019

This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. We don’t have any equity or control over the business….”. “As Key elements: . “We

Revenue 60

Revenue Technical Review Software Review Equity 60

Both Sides of the Table

APRIL 19, 2011

He met with 8 companies and got 6 term sheets, decided to take General Atlantic deal and that’s when Experian came back to buy the whole thing. o On 1/11/05 his daughter was born at 8AM, at 6 PM email showing first million dollar rev day for the company and 8 PM term sheet from Experian to buy the company – all on the same day!

Acquisition 304

Acquisition Warrant Customer Term Sheet 304

David Teten

MAY 19, 2017

I’ve also published research here on private equity , venture capital , hedge funds and mutual funds , and angel investing , as well as on fund management : origination , due diligence , investment research , and portfolio acceleration. TheDeal Corporate Governance Conference. PrivCapAcademy. RAISE conference/Fundapalooza.

Private Equity 60

Private Equity Venture Capital Equity New York City 60

Early Growth Financial Services

NOVEMBER 13, 2012

What is a term sheet, and why should you care about it? Questions about term sheets? Ask in comments below, or contact Early Growth Financial Services for help understanding your term sheet, and other financial support. Check out my quick overview.

Term Sheet 41

Term Sheet Video Venture Capital Equity 41

Up and Running

MAY 11, 2016

corporation from a foreign country, a sample convertible preferred term sheet, a sample convertible note term sheet, and the Founders Accord. This book includes everything from guidance on drafting your dream team and allocating equity, to understanding the funding process and what investors want to see.

Technical Review 60

Technical Review Term Sheet Due Diligence Startup 60

Gust

NOVEMBER 14, 2011

After you have successfully attracted angels or venture capital with your business case, your million dollar product idea, and you have a signed term sheet, there is still one more hurdle to overcome before investors write the check. This is the dreaded “due diligence” process.

Technical Review 152

Technical Review Due Diligence Intellectual Property Private Equity 152