David Teten

JANUARY 19, 2021

Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate. That said, Jonathan Bragdon, General Partner, Capacity Capital , points out that Flexible VC terms “twin” well with equity: providing less dilution while still providing investor assistance. . Emily Campbell, Esq.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Rob Go

SEPTEMBER 4, 2018

We are also seeing more investors try to be a part of syndicated A rounds for companies that are raising $5M or more and are really not what most would consider “seed” stage. As seed funds have raised larger and larger funds, more have developed the muscle around issuing term sheets and “leading”.

North America 36

North America Seed Stage Early Stage Lead Investor 36

View from Seed

OCTOBER 22, 2015

Here’s a quick look at the graphic as published in David’s article (click to view a larger version): In some cases, these steps are blurred or shuffled slightly in terms of sequence, but broadly speaking, most VC firm processes look basically like this. Work on securing a lead investor who can then help in forming a syndicate.

Term Sheet 120

Term Sheet Due Diligence Seed Stage Seed Capital 120

Haystack

FEBRUARY 9, 2019

The story behind the deal is just as interesting — as you can imagine, Gade and Paka had a lot of interest in their round, so given that I knew Gade well from before, I did a few things I’ve never done before — I wrote a term sheet, committed my largest ever first check (gulp!),

Artificial Inteligence 107

Artificial Inteligence Algorithm Term Sheet Cofounder 107

Scott Edward Walker

NOVEMBER 26, 2017

In fact, in this new fundraising environment (with syndicates on AngelList , etc.), Accordingly, the goal is to get several term sheets and to play investors off of each other to negotiate the best possible structure and terms (or, better yet, have your lawyer draft the term sheet and control the drafting).

Term Sheet 63

Term Sheet San Francisco Founder Investment Bankers 63

View from Seed

AUGUST 12, 2015

I once showed a company to another VC for an investment we were syndicating. In particular, he asked one very clever question of VCs to run a smoother, more effective process, culminating in four term sheets from interested, lead investors. This investor loved the team and thought the solution they were building was compelling.

Seed Stage 120

Seed Stage Marketing Angel Investor Term Sheet 120

View from Seed

AUGUST 12, 2015

I once showed a company to another VC for an investment we were syndicating. In particular, he asked one very clever question of VCs to run a smoother, more effective process, culminating in four term sheets from interested, lead investors. This investor loved the team and thought the solution they were building was compelling.

Seed Stage 120

Seed Stage Marketing Angel Investor Term Sheet 120

K9 Ventures

APRIL 27, 2011

I helped introduce the company to various angels and lead the effort to form a syndicate for their fund-raising round. The day before we were supposed to sign the term sheet for the investment, Like.com sued Ugmode (the parent company of Modista.com) for patent infringement.

Software Review 134

Software Review Technical Review IP Finance 134

Professor VC

JULY 25, 2013

Another area where I''m not sure I stand is with some of the more formal referral and syndication programs that are emerging now. AngelList (which I remain a big fan) also recently launched a syndicate program. In this program, an angel can ask the entrepreneur for an allocation of the round and then syndicate through AngelList.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Professor VC

APRIL 1, 2010

There has been a lot of discussion and publishing of standard term sheets, including Y Combinator, TechStars and SeriesSeed. A good comparison of the various "standard" term sheets can be found at Start-up Company Lawyer. Marios firm, Wilson, Sonsini, even has a term sheet generator on their site.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

Feld Thoughts

APRIL 29, 2015

Another company that did an awesome transparent funding announcement was Buffer (and app and company I love, but am only a tiny investor in via an AngelList syndicate) when they announced We’re Raising $3.5m in Funding: Here is the Valuation, Term Sheet and Why We’re Doing It. Data, data everywhere. And lots and lots of story.

Atlanta 70

Atlanta Valuation Term Sheet Seattle 70

Feld Thoughts

JULY 14, 2015

The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless. So they recapitalize the company. The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Both Sides of the Table

APRIL 3, 2010

We used the Y Combinator open source term sheet. We signed the term sheet within 48 hours and had funded in under 2 weeks. If you accept my terms you’re done. They elected to sign my term sheet. We offered them more : $750k-1 million. We took the $500k. How did it go so quickly?

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

www.paulgraham.com

APRIL 28, 2010

Some angel investors join together in syndicates. One experienced CFO said: The better ones usually will not give a term sheet unless they really want to do a deal. Heres a partial solution: when a VC offers you a term sheet, askhow many of their last 10 term sheets turned into deals.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

David Teten

DECEMBER 3, 2019

Atlassian open-sourced their M&A term sheet , a very aggressive move which helps smooth the M&A process, by reducing the number of degrees of freedom in a negotiation. This move also undoubtedly created more inbound M&A opportunities for them. .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

chrischandler.name

NOVEMBER 1, 2010

Be prepared with your business plan, term sheet, and probably a beer. Equity to a developer works the same way, except it’s often approached as hiring an employee instead of bringing on an investor. An “I’m giving you the opportunity to get in on the ground floor&# attitude is going to make you the target of contempt.

Equity 40

Equity Developer Entrepreneur Syndicate 40

Agile VC

FEBRUARY 28, 2012

Entrepreneurs can sink a lot of time into fundraising discussions that go nowhere or end with actual term sheets but ones they’re not prepared to accept (firms you don’t want to work with, terms you don’t like, etc). What’s Your Favorite Future?

Early Stage 100

Early Stage Syndicate Syndication Silicon Valley 100

David Teten

SEPTEMBER 6, 2015

Others follow independent financial lead investors and most require that independent investors be part of the syndicate. They invest alongside financial VCs. Some corporate funds now lead rounds. This sector has come a long way and matured a lot. . Teten: What makes for a good vs. bad corporate venture investor?

Venture Capital 60

Venture Capital Balance Sheet Technical Review Portfolio 60

Both Sides of the Table

FEBRUARY 25, 2010

We had many term sheets (it was 1999 and we had a pulse) and we were deciding which one to take. We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. We ended up agreeing a term sheet for $16.5 We ended up agreeing a term sheet for $16.5

Technical Review 301

Technical Review Term Sheet Venture Capital Due Diligence 301

Berkonomics

DECEMBER 17, 2020

Some can supply more when syndicating with other such groups. And even though angel groups syndicate their best deals within their respective associated networks, it is always best to apply to the angel groups nearest your physical location. Angel groups invest from $250,000 to $1,000,000 or more in qualified investments.

Equity 62

Equity Finance Liquidity Event Angel Groups 62

Both Sides of the Table

AUGUST 1, 2010

They either do too many seed investments (for which they can spend no quality time with any) or they treat it as an option (“if you succeed come back and see us and we’ll match any term sheet you get&# ) – they view it as a sort of “right of first refusal.&#. The signaling affect is overrated.

Post-Money Valuation 298

Post-Money Valuation Term Sheet Partner Warrant 298

Rob Go

APRIL 19, 2017

Just last week, Axios announced that Stephen Marcus is raising a fund called Riot Ventures and Term Sheet announced that Nilanjana Bhowmik from Longworth will be joining Converge. Recently, I’ve been spending a fair bit of time with a number of the new early-stage investors in Boston. There are a lot of new folks in the space.

Early Stage 34

Early Stage Boston Artificial Inteligence Term Sheet 34

Rob Go

JULY 17, 2014

To date, we have led roughly 2/3 of the seed rounds we’ve been a part of, and even if our name isn’t the lead on the top of the term sheet, we act like a lead and drive to fast, independent decisions rather than hang back to see how syndicates take shape. 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

Professor VC

JUNE 20, 2011

At this time, we had secured a term sheet from a co-investor from one of my other angel investments (Thanks, Graeme!) In fact, since the iControl system was busy taking pictures of all entering our conference room, we could put together a photo album of all these meetings. So what does this all mean.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

Berkonomics

APRIL 3, 2014

And even though angel groups syndicate their best deals within their respective associated networks, it is always best to apply to the angel groups nearest your physical location. You will be given a “term sheet” during the process, calling out the terms proposed for the investment.

Equity 92

Equity Finance Liquidity Event Angel Groups 92