Startup Professionals Musings

SEPTEMBER 26, 2013

Some aspiring entrepreneurs are so desperate for funding, or naïve, that they ignore the obvious signs of scams and rip-offs on the Internet, praying for a windfall. Unsolicited foreign investors that contact you on the Internet need extra scrutiny. Deposit required to hold your terms. Phantom fund investors. Marty Zwilling.

Technical Review 202

Technical Review Non-disclosure Agreement Due Diligence Entrepreneur 202

Both Sides of the Table

OCTOBER 19, 2014

By September 26th we had submitted a term sheet which was signed on October 4th and financing was closed in less than 30 days. We funded about $2 million, which allowed a full team in Finland to be recruited for building the app and an international management team led from Los Angeles.

Technical Review 373

Technical Review North America Los Angeles Cofounder 373

Diego Basch

FEBRUARY 28, 2012

We could have insisted on a term sheet, even though term sheets are non-binding. Many years ago I was running a consulting business, and one of our customers was a famous internet company at the time. I believe the startup should have pushed for the term sheet as soon as possible.

Term Sheet 56

Term Sheet Redemption Acquisition Reputation 56

Both Sides of the Table

APRIL 19, 2011

As internet crashed media became cheaper so they bought more and their tracking and analysis became really good so they did better. 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. He wanted to see all the data himself.

Acquisition 304

Acquisition Warrant Customer Term Sheet 304

View from Seed

AUGUST 17, 2021

I was speaking to the former CFO of one of our most valuable portfolio companies the other day, and she recounted how this company once pitched 70 investors to barely get a term sheet. Some folks in the audience jeered because I was young, inexperienced, and hadn’t been an investor when the internet bubble burst.

IRR 205

IRR Dilution Founder Portfolio 205

Both Sides of the Table

OCTOBER 19, 2009

My blog linked to Brad Feld’s blog because I was so grateful for his series on term sheets and he was one of the biggest reasons that as a VC I felt compelled to blog. I set up my laptop, connected to the Internet, opened the compulsory 15 page PowerPoint deck and waited for my adoring fans. That changed very quickly.

Venture Capital 274

Venture Capital Term Sheet San Diego Viral 274

View from Seed

AUGUST 17, 2021

I was speaking to the former CFO of one of our most valuable portfolio companies the other day, and she recounted how this company once pitched 70 investors to barely get a term sheet. Some folks in the audience jeered because I was young, inexperienced, and hadn’t been an investor when the internet bubble burst.

IRR 156

IRR Dilution Founder Portfolio 156

Mucker Lab

AUGUST 27, 2014

Encyclopedic knowledge of term sheets and startup buzzwords can be quickly learned, trained, and packaged. The best entrepreneurs have been coached to run a tight process, to shop their term sheets to a myriad of VCs, all of whom have great reputations and large networks.

Los Angeles 138

Los Angeles Southern California Silicon Valley Technical Review 138

View from Seed

AUGUST 17, 2021

I was speaking to the former CFO of one of our most valuable portfolio companies the other day, and she recounted how this company once pitched 70 investors to barely get a term sheet. Some folks in the audience jeered because I was young, inexperienced, and hadn’t been an investor when the internet bubble burst.

IRR 136

IRR Dilution Founder Portfolio 136

This is going to be BIG.

SEPTEMBER 30, 2012

The other day, I noticed an eye-catching headline: "Internet Funding Boom Ends as Fast as It Began". This is a company that, according to the article, got term sheets from half of the VCs that expressed interest in the company. Perhaps I need to rethink that. Not a bad close rate, I'd say--and a pretty great pay day.

Venture Capital 114

Venture Capital Marketing Term Sheet Software Review 114

Both Sides of the Table

MARCH 23, 2015

My initial blogging inspiration was actually Brad Feld because as an entrepreneur I always wanted to work with Brad after reading his advice on term sheets and the like. Back then people remained skeptical about the long-term value of video (“It’s a hits-driven business!”)

Los Angeles 150

Los Angeles Silicon Valley Term Sheet Video 150

ReadWriteStart

JUNE 1, 2020

Let’s take an example – In the case of an internet or app business, the user traction and market penetration is a must. It is essential to understand the funding structure stated in your term sheet and the advantages and disadvantages it may have for your business. Establish a competitive advantage.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Gust

SEPTEMBER 29, 2011

For a traditional VC financing round structured as a sale of preferred stock, the best resources I can recommend are the Term Sheet Series by Brad Feld and Jason Mendelson and Startup Company Lawyer by Yokum Taku. I’ve posted a sample convertible note term sheet on my website.) There are two principal reasons.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

The Next Web

JUNE 27, 2012

The term sheet was ready, all they had to do was sign. Their decision not to sign the term sheet with the VC, however, is an interesting one, although you can already guess why it was made. Except they ultimately decided not to.

Term Sheet 115

Term Sheet Angel Investor Software Internet 115

www.founderinstitute.com

MARCH 2, 2010

New "Plain Preferred" Term Sheet 08/24/2009: by Adeo Ressi Public: TheFunded Founder Institute has just released a new "Plain Preferred" term sheet with support of the blogosphere, including top-rated venture capitalist, Fred Wilson. The Plain Preferred term sheet aligns the investor and the entrepreneur incentives.

Term Sheet 40

Term Sheet Liquidation Preference Vesting San Diego 40

Both Sides of the Table

APRIL 17, 2012

Home to the Internet’s first true “accelerator,” Idealab led by Bill Gross. Deviant Art, led by Angelo Sotira, which is one of the largest online communities on the Internet [Hollywood]. World-class education including Caltech, USC and UCLA. Home of JPL (Jet Propulsion Laboratory), which helps put rockets into space.

Community 304

Community Los Angeles Startup Silicon Valley 304

Both Sides of the Table

APRIL 14, 2012

Is your crappy little 12-person company really worth they and their shareholders diluting by 2% given more than a decade they’ve put in building one of the Internet’s most solid business social networks? ” Getting a term sheet on the table is the second most sure way to get a potential acquirer to move faster.

Valuation 316

Valuation Balance Sheet Dilution Term Sheet 316

Up and Running

FEBRUARY 19, 2014

Term Sheets. Oftentimes, early-stage companies think they can grab funding documents off the Internet without a lawyer. You don’t necessarily need a lawyer to draft a brand new term sheet from scratch, but you do want the experienced eyes of a seasoned startup lawyer on your side. - Adam Lieb , Duxter.

Non-disclosure Agreement 97

Non-disclosure Agreement NDA Term Sheet Early Stage 97

Reid Hoffman

DECEMBER 10, 2020

My conclusion was that I should have realized that the first person who pitched me on Airbnb wasn’t a great consumer internet investor, which means I should have realized that he might not describe the opportunity accurately. So I got the license to put a term sheet down, and we made the investment. Clearly I had made a mistake.

Hosting 69

Hosting Hockey Stick IPO Silicon Valley 69

Steve Blank

JANUARY 4, 2010

Staring at us in the board meeting were three term-sheets from brand name VC’s and an unexpected buy-out offer from Google. The Internet has created a series of new and innovative business models. In fact, Google’s offer for $15 Million was equal to the highest valuation from the venture firms. The Web and Startups.

Hockey Stick 276

Hockey Stick Venture Capital Startup Cofounder 276

Scott Edward Walker

JULY 14, 2014

Q: What are the “ethics” of a founder shopping a VC deal after signing a term sheet? I’m watching “The Internet’s Own Boy” on Google Play – a solid documentary re Aaron Swartz (here’s the trailer: bit.ly/1lq7nbk ” - @venturehacks bit.ly/1oe2WmP. ” bit.ly/1mtGTdw.

Term Sheet 55

Term Sheet Cofounder Internet Founder 55

This is going to be BIG.

MAY 26, 2022

They’ll obviously see the value of what you built and will be compelled to offer a term sheet on the spot. What are those people finding when they poke around your internet presence? That’s just not how it works. There are so many companies out there and the reality is, many of them kind of look like each other.

Founder 103

Founder .Net Term Sheet Aggregator 103

Both Sides of the Table

FEBRUARY 8, 2010

But what about once you have a term sheet? Nobody wanted anything to do with Internet companies. As in real life – those that rush into marriage often find out what their partner is really like after the fact. I wrote a post linked as follows about how to build relationships with VCs over time. My story briefly.

Venture Capital 288

Venture Capital Term Sheet Cofounder Partner 288

Both Sides of the Table

JANUARY 31, 2011

But we had a term sheet !!! It was 2002 – the “dog days&# of the Internet and we were running out of cash. It’s a very tough decision to walk away from a senior role at what I consider one of the most successful tech companies of Internet era. It was well past the Internet boom, well into Web 2.0,

Entrepreneur 384

Entrepreneur Startup Salary Egypt 384

Gust

JULY 3, 2012

For those who may not have tried the service, Pinterest is an online “pinboard” of sorts, enabling users to create “boards” on various areas of interest (see mine, Term Sheet , as an example).

Intellectual Property 163

Intellectual Property Social Bookmarking IP Term Sheet 163

VC Cafe

OCTOBER 27, 2011

There are some well respected junior VCs doing Internet investments. Having multiple term sheets makes a difference. If you get multiple term sheets, don’t engage in a bidding war. Choose the terms that are fair and you are more likely to close the round.

Venture Capital 109

Venture Capital Term Sheet Angel Investor Due Diligence 109

The Startup Lawyer

DECEMBER 13, 2010

Burn the term sheet unless they delete that provision. The $10,000 sentence is why no matter how many “free&# legal documents are out there thanks to Google or any other “kit&# you’ll see on the internet, human legal counsel will never be replaced. That’s f ing crazy. hours billed on the legal invoice.

Term Sheet 87

Term Sheet Vesting Hiring Finance 87

Feld Thoughts

OCTOBER 15, 2010

Dan Primack, who is now writing a great column at Fortune called Term Sheet used to do this; there are now guest writers (including me) who do this column. Ive been helping create software and Internet companies for over 25 years, starting with my first company, Feld Technologies, in 1985 when I was in college. Really hard.

Term Sheet 106

Term Sheet Seattle Angel Investor Bootstrapping 106

Both Sides of the Table

JANUARY 29, 2010

Company B had already lined up a significant funding round ($20 million) from some of the most elite VCs on Sand Hill Road but hadn’t signed the term sheet. When the Internet part of their business took off there were a number of initial competitors. Vente Privee already had market power.

Entrepreneur 296

Entrepreneur Silicon Valley Term Sheet France 296

SoCal CTO

JULY 13, 2010

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. had two occasions recently to review products which had clear market leadership. Yes, even bootstrappers. liquidation preference.

Cofounder 175

Cofounder Technical Cofounder Term Sheet Startup 175

Both Sides of the Table

MAY 25, 2013

33% of the world is on the Internet on average of 3.1 Many entrepreneurs come by with great pitches and say, “I’m hoping to have term sheets in the next 30 days.” By 2009 had reduced to around $15 billion in capital from LPs. In 2013 it is expected to be around $35 billion. hours / day. Shame on you.

LP 374

LP Later Stage IRR Term Sheet 374

reidhoffman.org

NOVEMBER 12, 2013

the consumer internet landscape in 2004 vs. today. In 2004, the consumer internet was just beginning to rebound. In 2004, investors regained interest in the consumer internet again. And remember, LinkedIn was a consumer internet play with moderate consumer traction and without a dime of revenue. Reid Hoffman.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

Both Sides of the Table

JANUARY 22, 2011

But we had a term sheet !!! It was 2002 – the “dog days&# of the Internet and we were running out of cash. It’s a very tough decision to walk away from a senior role at what I consider one of the most successful tech companies of Internet era. It was well past the Internet boom, well into Web 2.0,

Entrepreneur 176

Entrepreneur Startup Salary Egypt 176

Rob Go

JULY 17, 2014

NextView Ventures II is $40M, twice the size of our first fund, and we continue to be exclusively focused on seed-stage companies pursuing internet-enabled innovation. On behalf of our team at NextView, I’m very pleased to announce that we have just closed our second fund. In most ways however, Fund II is a carbon copy of fund I.

Seed Stage 69

Seed Stage Early Stage Due Diligence Liquidity Event 69

Startup Professionals Musings

DECEMBER 26, 2021

Do your homework on the Internet and through contacts to find out their strengths, weaknesses, biases, curiosities, and insecurities, Knowledge is power, and that can be used for leverage. On the other hand, when negotiating a financing for your company, you should never present your term sheet first.

Term Sheet 328

Term Sheet Bootstrapping Finance Startup 328

Pascal's View

AUGUST 21, 2011

In April 2011, just prior to the Linked In, Pandora, and RenRen IPO’s, Fred Wilson reaffirmed his belief on his blog that we were not in a bubble in this sector: “I n all the posts over the past year or so outlining my thoughts on the financing and valuation environment in the internet sector, I’ve avoided using the word Bubble.

Valuation 50

Valuation Social Media Media IPO 50

Startup Professionals Musings

MARCH 12, 2023

Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles. Sending unsolicited business pitches to every angel and VC investor you can find on the Internet is a waste of your time as well as theirs.

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246