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How Many Angels is the Right Amount for a Startup to Have?

Both Sides of the Table

I love how open Danielle has been throughout the development of her startup Mattermark including honest reflections of when she has changed her opinion. They now have a strong VC lead from Foundry Group and from experience when you get advice from Foundry it comes with authority, experience, empathy and the right amount of straight talk.

Cap Table 150
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The Truth About Investor Updates

Haystack

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.

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Three Questions Founders Should Ask Scouts Before Taking An Investment

Hunter Walker

The format differs but let’s generally describe Scouts as, individuals using money fully or partially fronted by another VC fund to make investments in early stage companies with hopes of giving the sponsoring fund an advantage in leading a larger round for the startup later on. Are you a Scout? Sometimes post-investment.

Founder 69
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Should you go after value-add investors for your seed round?

Hippoland

Portfolio founder: There’s an investor who wants to invest about $500k. Portfolio founder: That’s the problem. This especially happens when founders start getting a lot of inbound requests from investors to meet, so they think that they have a lot of investor options. Major investor / information rights?

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My new Startup Board Mantra: 1-1-1

OnlyOnce

Last week, I blogged about Bolster’s Board Benchmark survey results , which really laid bare the lack of diversity on startup boards. My new mantra for Startup Boards is simple: 1-1-1. The conversation with your co-founder about only one founder/executive on the board. Independent seats aren’t necessarily easy to open up.

Vesting 48
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Why You Don’t Want to Give Financial Information to All of Your Investors

Both Sides of the Table

We all know that funding markets have changed for startups. We all can intuit the benefits to founders of these trends so there’s little reason to elaborate. How founders get screwed on convertible notes. There’s another issue I can add to your list of things to be aware of – information rights.

SEC 352
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What is convertible equity (or a convertible security)?

Startup Company Lawyer

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. However, most typical convertible debt issued by startups have a maturity date of typically one year or later from the time of issuance. Background.