Bad Notes on Venture Capital

Both Sides of the Table

If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy. If you want to give them a 33% discount you offer them half of a $1 common-stock warrant for every $1 share they purchase. This week. On the phone … Me: So, you raised venture capital? Him: Yeah. We raised a seed round. About $1 million. Me: At what price? Him: It wasn’t priced. We raised a convertible note. Me: With a cap?

Venture Debt 101

Up and Running

This sometimes even includes your IP assets, though this is negotiable and should be part of your decision on the lender you choose to work with. Warrant coverage: the lender will request warrants over equity in the range of five percent to 20 percent of the value of the loan.

Trending Sources

Bad Notes on VC

Gust

If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy. If you want to give them a 33% discount you offer them half of a $1 common-stock warrant for every $1 share they purchase. This week. On the phone …. Me: So, you raised venture capital? Him: Yeah. We raised a seed round. About $1 million. Me: At what price? Him: It wasn’t priced. We raised a convertible note. Me: With a cap? Him: Yes, $8 million.

How to Work with Lawyers at a Startup

Both Sides of the Table

Shame about not getting it in legal writing that you owned the original IP. They usually ask for warrants (basically like a stock option) in exchange for taking a deferred fee. But if you can stomach that he’s a star and contingency work / risk sharing on IP claims is key!

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

So money spent should add equity value or create IP that eventually will. If you were able to raise at a $50 million post-money valuation and have $2 million in the bank and the markets turn you better be sure that your valuation warrants raising at at least $50 million even in a tough market or I’d be more cautious about a higher burn. I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal.

Royalty Based Financing As A New Tool for Start-Up Financing?

Recent Buzzes - VC Experts, Inc.

And, if like many of these royalty-based financing investors, the investor takes a warrant for a small equity position, the investor could see some additional reward from a future sale or IPO of the company without taking any additional risk. The founder of the company does not suffer much dilution as the dilution comes only from the warrant position. IP litigation , and?tax. By Beth J.

Getting Funded: Step 4, Due Diligence

Passionate Intensity

So, if they are on fund SIX, it means that they have been successful enough in funds 1-5 to warrant a six but, also, that the money for your company is coming from fund six which can be a much lower figure than the total.

Different “flavors” of startup pitches

Andrew Payne

In his recent blog post, “ A hierarchy of pitches “, Eric Ries points out each situation warrants a different presentation emphasis, and he neatly categorizes the different types. A breakthrough technology project needs to show clear IP ownership, and ideas for making products out of the technology. I frequently get asked: what should my investor presentation look like? There’s no unilateral answer, because every situation is different.

New Anti-Piracy Bill Still Threatens Start-ups

Inc Startups

If the ITC decides that action is warranted, it can prohibit the importation of the infringing goods. A full vote on IP legislation could happen in early 2012

This Man Fought an Online Stalker Off His Company

Inc Startups

Troutwine did some investigating and found that many of the reviews originated from the same IP address, which he traced to MLIC. If the attacks truly warranted a response, they could have created a site with a name like truth.veritasprep.com.

Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

People raised rounds with “a discount to the next round&# or “warrant coverage.&# Yes, these give cheaper prices to early angels but potentially not much of a discount if the company becomes hot.

What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

If your idea is so amazing that it warrants my hard-earned angel money or the money of my LP investors from our fund then why should I take a risk on you if you won’t take a risk on yourself? This is part of my series on what makes an entrepreneur successful.

CEO Friday: Why we don’t hire.NET programmers

blog.expensify.com

Expensify Blog. Expense Reports That Don't Suck. CEO Friday: Why we don’t hire.NET programmers. Update: The end is near, Expensify is hiring a.NET programmer! Learn more… Saturday edit: Wow, quite a response to this. Some additional comments at the end. Sunday edit : Still going!

Java 62

The Importance of Due Diligence in M&A Transactions

Scott Edward Walker

” Obviously, this is a relatively small transaction; however, it is still imperative that, at a minimum, you conduct financial due diligence (to validate the numbers [Target] has provided to you) and IP diligence to confirm the ownership and functionality of the software. The Schedules will also flesh-out particular issues that warrant additional diligence. INTRODUCTION.

What you should know about Angel Investors and Convertible Notes

Don Dodge on The Next Big Thing

Warrants to purchase additional shares are common, usually 20%, but sometimes more based on how long it takes to raise the first round. The notes are usually secured by all assets and IP of the company. Angel Investors are a special breed. They take on the riskiest investments at a stage that VCs will not engage. That’s why they call them angels. For a struggling entrepreneur they are heaven sent. They are usually experienced entrepreneurs that have built and sold several companies.

"When in doubt, look different". Geoffrey Moore at Business of Software. Video & transcript.

Business of Software Blog

This is what allowed this to platforms like the client/server platform to proliferate the TC IP platform in that. There must be an end-to-end solution that you personally will warrant works. What is context, what is core? "I "I have to say if I have, to be in a business during this economy, I would want to be in a software business. A service led software business. Because it's the most flexible.

Leader driven Harmony #4: How to make your writing Crisp, Flavorful and Satisfying (Part II)

Active Garage

If you have Intellectual Property (IP) that needs to be discussed in the report, you should try to discuss it in sufficient detail for the customer to get a feel for its significance, but not in so much detail that you lose competitive advantage to a competitor. Why should you read this post?

The cardinal sin of community management

Startup Lessons Learned

Lessons Learned by Eric Ries Friday, September 11, 2009 The cardinal sin of community management Once you have a product launched, you will the face the joys – and the despair – of a community that grows up around it. I won’t sugar-coat this: it is one of the most difficult and frustrating aspects of building a company online. There are many articles by many experts ( myself included ) extolling the virtues of listening to customers.

Making Decisions in Context

Austin Startup

Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services. If you’ve got patent or other IP needs, you may want to engage specialists in those areas. August 20, 2017: This is another in my series of posts all leading up to a book on Startup Decision Making. One of the most common mistakes I see in startups is making decisions that lose sight of the context , including the past, present, and future.

Getting Funded: Step 4, Due Diligence

Passionate Intensity

So, if they are on fund SIX, it means that they have been successful enough in funds 1-5 to warrant a six but, also, that the money for your company is coming from fund six which can be a much lower figure than the total. You made it through the partner meeting , your email dings, your phone rings — good news: the VCs liked your company enough to proceed to the next step: due diligence. Usually, the word will come from your “inside coach”, as explained in a prior post.

Ask the Angels

Ask the Angels

To prepare the venture for this type of exit might be as simple as sorting out the IP. Your resources will focus instead on creating additional IP and scalability, making contact with potential buyers and building the deal team. Accordingly, they can help the entrepreneur get the best deal warranted given the progress of the business.

Ask the Angels

Ask the Angels

To prepare the venture for this type of exit might be as simple as sorting out the IP. Your resources will focus instead on creating additional IP and scalability, making contact with potential buyers and building the deal team. Accordingly, they can help the entrepreneur get the best deal warranted given the progress of the business.

Ask the Angels

Ask the Angels

To prepare the venture for this type of exit might be as simple as sorting out the IP. Your resources will focus instead on creating additional IP and scalability, making contact with potential buyers and building the deal team. Accordingly, they can help the entrepreneur get the best deal warranted given the progress of the business.

Ask the Angels

Ask the Angels

To prepare the venture for this type of exit might be as simple as sorting out the IP. Your resources will focus instead on creating additional IP and scalability, making contact with potential buyers and building the deal team. Accordingly, they can help the entrepreneur get the best deal warranted given the progress of the business.