article thumbnail

Venture Capital Q&A Session

Both Sides of the Table

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. In fact, far better if you haven’t raised venture capital.

article thumbnail

How to Scale a Venture Capital (or Private Equity) Fund

David Teten

Another example is Correlation Ventures ($300M+ AUM), a VC firm which co-invests in financings with at least one other new outside VC. If you’re thinking of hiring a Partner, I suggest see How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm. – Launch a venture capital fund of funds.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

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. “A startup could also give better deals to investors they expected to help them most&# – That is a quote from Paul on the “high resolution financing&# post.

Finance 286
article thumbnail

Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? It’s like we need a finance 101 course for entrepreneurs. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. We raised a seed round. About $1 million. Me: At what price?

article thumbnail

Who Should be on Your Startup Board?

Both Sides of the Table

If angel investors are pressuring you to set up a board and if you don’t have the leverage to push back a little then I might suggest a 3-person board in which all 3 seats are appointed by the common stock and you agree to appoint one of these seats to the angel investor but perhaps make it either time based or event based.

article thumbnail

What Type of Business Structure is Right for a SaaS, AI or IoT Company?

ReadWriteStart

In addition, they can neither issue stocks nor bonds. Lower tax rates allow an LLC to be more flexible with finances. However, most institutional investors (venture capital groups, for instance) don’t mind this structure, and they, in fact, prefer to invest in corporations due to protections from issuing stocks.

article thumbnail

Cram Down – A Test of Character for VCs and Founders

Steve Blank

Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. A cram down is different than a down round. They’re Back.

Cram Down 404