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

Tim Keane

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.

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How Much Information Should you Give VCs for Due Diligence?

Both Sides of the Table

which really means, are you really so naïve as to have a discussion with a VC and you’re worried about sharing your high-level financial results and forecasts?). It is always appropriate for a VC to ask you for your past 12-month financial performance and your going forward forecasts. “So why are we here?”

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Going Concern Rules And Your Company

YoungUpstarts

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. Company growth and future forecasts are a critical component of going concern analysis.

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LinkedIn: The Series A Fundraising Story ? AGILEVC

Agile VC

This also appears as a guest post at Fortune’s Term Sheet. In another we decended into a debate about our 5 year forecasts (I built the models so fielded most of these questions), and it became clear they probably weren’t the best fit for our Series A round (this group is no longer in the early-stage VC business).

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

In all these cases, capital is provided to fuel forecasted growth without creating a commitment to a particular vision for future funding rounds, exit goals, and associated blitzscaling. Womble Bond Dickinson has released a white paper on Performance Aligned Stock and a term sheet on ImpactTerms.org. . (If Emily Campbell, Esq.

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Looking for investors? Here’s how to value your startup

The Next Web

In terms of techniques investors use to value your business, investors will study things like: revenue, cash flow or net income multiples from recent financings in your industry. a discounted cash flow analysis of forecasted cash flows from your business. Forecasted earnings growth is typically the #1 driver of your valuation (e.g.,

Valuation 167
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How To Keep Your Company Alive – Observe, Orient, Decide and Act

Steve Blank

Forecasted recovery date. If you were raising money, validate whether your investors are still on board – with the same terms – or at all. Sales pipeline/forecast. Some VC’s are walking away from signed term sheets. Shelter in place yes/no? Health of Your Current Target Market(s). Actively buying?