Startup Professionals Musings

OCTOBER 6, 2023

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. This is the mysterious and dreaded due diligence process, which can kill the whole deal.

Technical Review 296

Technical Review Due Diligence Startup Entrepreneur 296

The Startup Magazine

SEPTEMBER 15, 2020

Understand VC Term Sheets. A venture capital term sheet is a “non-binding listing of preliminary terms for venture capital financing”. The funding section of the VC term sheet explains the financial guidelines that need to be followed.

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Venture Capital Technical Review Software Review Private Equity 143

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.

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Term Sheet Liquidation Preference Vesting San Diego 40

Startup Professionals Musings

MAY 11, 2020

If all this checking sounds a bit paranoid and unnecessary, it may be time to take another look at some questionable investor practices and onerous term sheet requests. To get the terms you want, it’s better to start with your own term sheet. It’s no fun for either side.

Technical Review 310

Technical Review Due Diligence Term Sheet Entrepreneur 310

www.quora.com

JANUARY 16, 2011

Find Questions, Topics and People Add Question Add Question Venture Capital Venture Capital Term Sheets Startups Term Sheets What are examples of good startup term sheets? Ycombinator open source term sheet is a good start for Seed deals. Brad Feld does the best blog term sheet series.

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Term Sheet Startup Venture Capital Angel Investor 41

Startup Professionals Musings

SEPTEMBER 26, 2015

Here is a summary of the key terms to expect on the term sheet, or the contract between the founder and investor: Consideration given for the money invested. In very early startups, which have no valuation, the term sheet may specify a convertible note. Term sheets are something you can’t avoid.

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Term Sheet Startup Demand Preferred Stock 120

Both Sides of the Table

SEPTEMBER 30, 2015

What Can You Do if a VC Pulls Their Term Sheet? A term sheet is not a legally binding document. So if you’re a VC – you better have a pretty damn good reason for pulling out of deal after offering a term sheet. I was asked to answer this exact question on Quora and I did so some time ago.

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Term Sheet Warrant Entrepreneur Founder 150

Hunter Walker

AUGUST 7, 2021

The phases of fundraising, how to get to a first term sheet, and what to do once you’ve got an initial offer is probably a blog series of its own. But end of the day, if you screw a founder, they’ll never forget. Addendum: When is a verbal or email offer as good as a termsheet?

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Term Sheet Founder Due Diligence Reputation 149

Startup Professionals Musings

JANUARY 27, 2012

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from either. Your best strategy is to bring your own term sheet to the negotiation as a starting point.

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Term Sheet Pre-Money Valuation Angel Investor Post-Money Valuation 223

Both Sides of the Table

MARCH 17, 2012

The very first time I ever negotiated a term sheet (and then legal docs for closing the round) I found the experience very frustrating. He marks up the term sheet. Seems like the term sheet will be done in a day or so. In it I list some books and also link to some of my previous posts. Nor did their lawyer.

Term Sheet 301

Term Sheet Startup Cofounder Ireland 301

Genuine VC

APRIL 29, 2013

all talk about the best way for entrepreneurs to optimize their fundraising process with the end-goal of receiving a term sheet. It’s often spoken as if the second that magical term sheet document is in hand, the process is over. Some VCs merely view term sheets as “marketing documents.”

Term Sheet 150

Term Sheet Entrepreneur Valuation Partner 150

Startup Professionals Musings

SEPTEMBER 14, 2010

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from an angel, either. Your best strategy is to bring your own term sheet to the negotiation as a starting point. The check won’t clear in time to save you.

Term Sheet 227

Term Sheet Pre-Money Valuation Angel Investor Post-Money Valuation 227

VC Cafe

AUGUST 11, 2022

If you agree that the top founders are likely to receive multiple term-sheets, then the importance of founder-investor fit increases. In the case of Echo3D, I didn’t wait for the term sheet to be signed to start providing value. Personal fit. Choose a partner, not just a fund. .” ”, Creandum.

Founder 187

Founder Cofounder Venture Capital Term Sheet 187

Both Sides of the Table

JULY 22, 2010

Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. No hidden terms.

Valuation 405

Valuation Founder Pre-Money Valuation Term Sheet 405

Feld Thoughts

NOVEMBER 7, 2011

For some time Jason and I have felt that VC’s have had an unfair advantage when it comes to understanding term sheets. So a few years back we wrote a whole series of blog posts (the Term Sheet series ) which became the basis for the book Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist.

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Term Sheet Entrepreneur Naming 133

Ben's Blog

JUNE 22, 2019

a16z Managing Parter Scott Kupor’s new book, Secrets of Sand Hill Road , is a guide to engaging with and understanding VC that covers everything from terminology and term sheets to the fundraising process, governance, and more. In this video, …

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Term Sheet Government Video Management 58

Both Sides of the Table

MAY 10, 2018

When you finally get a term sheet you get three. When a VC submits a term sheet all of those angels & seed funds who wanted to fund you “once you got a lead” are your new best friends. When you get your term sheet your existing investors suddenly fight over prorata rights.

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Term Sheet Founder Technical Review Restful 232

Startup Professionals Musings

JANUARY 24, 2021

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. This is the mysterious and dreaded due diligence process, which can kill the whole deal.

Technical Review 379

Technical Review Due Diligence Startup Entrepreneur 379

Startup Professionals Musings

APRIL 18, 2021

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process. Some startups do nothing to prepare for the due diligence process, assuming the people and business plan documents will speak for themselves.

Technical Review 380

Technical Review Due Diligence Angel Investor Term Sheet 380

Gust

OCTOBER 17, 2011

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from either. Your best strategy is to bring your own term sheet to the negotiation as a starting point.

Term Sheet 158

Term Sheet Pre-Money Valuation Angel Investor Post-Money Valuation 158

Genuine VC

OCTOBER 2, 2012

After completing a long process identifying the right venture firms to pitch, running an exhaustive fundraising process, finding a mutual fit, and successfully negotiating terms… at last, the term sheet is signed. The two- to six- week time between the signing of the term sheet and closing is “venture limbo.”

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Term Sheet Founder Vesting Due Diligence Entrepreneur 162

Both Sides of the Table

JULY 29, 2009

You finally get your first term sheet. They’re giving me 48 hours to sign the term sheet or it expires? Will they really pull the term sheet if I don’t sign? Will they really pull the term sheet if I don’t sign? First, every term sheet has an expiration date in it.

Term Sheet 197

Term Sheet Technical Review Due Diligence Venture Capital 197

YFS Magazine

OCTOBER 8, 2016

It can be tempting to skip the term sheet and simply have your lawyer prepare the investment documents.

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Term Sheet Startup Venture Capital Finance 112

Startup Professionals Musings

NOVEMBER 7, 2021

Deposit required to hold your terms. In this scam, you are offered a very attractive term sheet due to close in 90 days or so, with a deposit required to hold your position while due diligence is being conducted. The SEC and local law enforcement agencies can’t help you much with foreign scams.

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Technical Review Due Diligence Startup Non-disclosure Agreement 371

Mucker Lab

JUNE 23, 2014

There is no word more sacred and yet over-used than “term sheet” in the entrepreneurial circle. The pursuit of the mythical VC term sheet has blinded entrepreneurs from the real goal of building a business: revenue, customers, users, engagement and retention. It’s validation. Continue at Techcrunch. Venture Creation'

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Term Sheet Entrepreneur Equity Retention 60

Mucker Lab

FEBRUARY 24, 2021

When meeting with founders, we often find ourselves answering questions about what to expect with our diligence process and timeline between the first conversation and a term sheet. Today, Emotive announces their $50M Series B closed just 7 months after to accelerate growth after a transformative year for eCommerce brands.

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Seed Stage Term Sheet eCommerce Technical Review 135

Berkonomics

MAY 15, 2014

A good example was during the negotiation of a term sheet. These usually involve a handful of angel investors, and a few entrepreneurs, who all want to build the very best term sheet for their exciting nascent enterprise. It was not until the later 1980s that the preferred share structure became popular.

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Term Sheet Angel Investor Angel Groups Deal Structure 91

Both Sides of the Table

AUGUST 28, 2012

The only real benefit of their having this information is in preparation for a term sheet. ” Heading into a Term Sheet – Final Due Diligence. Obviously once a partner seems inclined to work on a term sheet you can expect a proctology exam and this gets even more intrusive after the term sheet.

Technical Review 316

Technical Review Due Diligence Term Sheet Cap Table 316

Feld Thoughts

DECEMBER 28, 2010

On the heels of all the noise around Groupon’s $ 100m financing at a $7.5b (billion) post valuation, I thought I’d put out a call for “old VC term sheets – prior to 1990.&#. The basis for the book comes from the Term Sheet series that Jason and I wrote on this blog in 2005.

Term Sheet 118

Term Sheet Search Finance Valuation 118

The Startup Lawyer

APRIL 2, 2014

My firm and Tech Wildcatters are co-hosting a live mock Series A term sheet negotiation on April 25th from 1-3pm. The event will take place at Tech Wildcatters at 2700 Fairmount St in Dallas Texas. Brad Hunstable, founder and CEO of Ustream, will play the role of the startup founder and a “TBD” VC will […].

Term Sheet 71

Term Sheet Cofounder Dallas Startup 71

David Teten

AUGUST 19, 2019

The traditional NVCA term sheet works well for founders who are comfortable substituting VC capital for revenues, running typically at a loss for many years. Convertible notes , which typically look like the Cooley Series Seed Convertible Note Financing Package , YC SAFE Term Sheet , or similar.

Revenue 60

Revenue Founder Term Sheet Venture Capital 60

Both Sides of the Table

MARCH 3, 2012

Had he not heard about our commitment it’s not clear whether he would be rushing to submit a term sheet. But for me I care too much about my long-term reputation. One of the best known VCs in Silicon Valley had decided to come in at the last minute and fund the company even though a term sheet was already signed.

Silicon Valley 356

Silicon Valley Term Sheet Reputation Partner 356

The Startup Lawyer

JANUARY 10, 2011

There’s a lot of advice about (1) how to attract VCs, and (2) how to negotiate a venture capital term sheet. Both sets of advice tend to ignore the gap between an investor’s expression of investment interest and your startup’s receipt of the term sheet.

Term Sheet 64

Term Sheet Pre-Money Valuation Liquidation Preference Option Pool 64

Startup Professionals Musings

SEPTEMBER 10, 2014

If all this checking sounds a bit paranoid and unnecessary, it may be time to take another look at some questionable investor practices and onerous term sheet requests. To get the terms you want, it’s better to start with your own term sheet. It’s no fun for either side.

Technical Review 257

Technical Review Due Diligence Term Sheet Entrepreneur 257

Scott Edward Walker

SEPTEMBER 14, 2011

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. The Investors’ Right to Walk VC Term Sheets Are Non-Binding. VC Term Sheets Are Conditional.

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Term Sheet Due Diligence Liquidation Preference Cofounder 76

NZ Entrepreneur

AUGUST 4, 2021

Lead investors and term sheets. Those investors interested in becoming lead will issue what’s called a term sheet – this details the terms they’re willing to invest on. Unless an interesting proposition comes along, try and stick to the terms on the term sheet. Legal documentation.

Founder 61

Founder Technical Review Software Review Due Diligence 61

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. Q: “If you have a term sheet on the table how should you leverage with other VCs?&#

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Venture Capital Term Sheet Valuation Entrepreneur 282