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 Offshore 310

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.

Venture Capital 179

Venture Capital Technical Review Software Review Security 179

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 Term Sheet Angel Investor 380

SoCal CTO

JANUARY 5, 2011

. - 500 Hats , July 30, 2010 Kathy Sierra at Business of Software 2009 - Business of Software Blog , May 4, 2010 Customer Development Checklist for My Web Startup – Part 1 - Ash Maurya , February 16, 2010 How-to learn about angel/vc term sheets - Gabriel Weinberg , June 28, 2010 Why Every Entrepreneur Should Write and 9 Tips To Get Started - OnStartups (..)

Silicon Valley 378

Silicon Valley Startup Term Sheet Venture Capital 378

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 Offshore 257

Both Sides of the Table

MARCH 15, 2010

I was raising money for my second company and having been burned by term sheets on my first company I was eager to get myself knowledgeable before signing up to take VC again. I started reading Brad’s “term sheet&# series. Brad Feld : I first learned of Brad Feld like many of you – through his blog.

Social Network 347

Social Network Networking Southern California Term Sheet 347

Both Sides of the Table

APRIL 13, 2011

The following is a brief series of quotes from just ten of the approximately 30 different topics discussed in this incredible interview. Is that when it became big? Yeah, that was when I changed for me…” “…there was so much positive feedback on demystifying this one element of venture capital.

Technical Review 288

Technical Review Venture Capital Silicon Valley Software Review 288

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 Term Sheet Bankruptcy 296

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.

Term Sheet 232

Term Sheet France Technical Review Restful 232

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.

Technical Review 371

Technical Review Due Diligence Non-disclosure Agreement Term Sheet 371

Both Sides of the Table

AUGUST 8, 2009

And I know many stories of Benchmark or similar investors writing term sheets after the first meeting. Doing an investment is more permanent then marriage – there are no divorces for irreconcilable differences. I know that in a booming market people fund quickly. But I also read stories about people winning the lottery.

Technical Review 309

Technical Review Term Sheet Venture Capital Revenue 309

Both Sides of the Table

SEPTEMBER 5, 2012

I can’t say it much simpler than this: “What if I took some of the worst, most egregious terms in a standard term sheet and made them the defacto standard in most convertible debt deals? Let me explain it more clearly in equity terms. Some thoughts on raising angel money. That’s right.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

Both Sides of the Table

APRIL 19, 2011

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. o On 1/11/05 his daughter was born at 8AM, at 6 PM email showing first million dollar rev day for the company and 8 PM term sheet from Experian to buy the company – all on the same day!

Acquisition 304

Acquisition Warrant Customer Term Sheet 304

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 Ireland Cofounder Finance 301

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 Due Diligence Post-Money Valuation 227

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.

Technical Review 373

Technical Review North America Los Angeles Cofounder 373

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.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Angel Investor 223

Both Sides of the Table

FEBRUARY 14, 2010

During the final pre-term sheet due diligence we discovered that the CEO had had a felony arrest for a significant crime that he hadn’t disclosed to us. Another CEO presented to us from a company that was growing at a tremendously fast clip. When confronted with this he told us, “Oh, I thought I told you.

Technical Review 284

Technical Review Due Diligence Entrepreneur Early Stage 284

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 Term Sheet Cofounder Venture Capital 187

Startup Professionals Musings

JUNE 29, 2012

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 245

Technical Review Due Diligence Term Sheet Startup 245

Both Sides of the Table

APRIL 23, 2017

Or ask anybody who has had a VC pull a term sheet for whatever reason. Summary There is so much fund raising press these days that it’s easy to imagine founders strolling into pitch meetings and walking out a week later with a term sheet. You’re not done until you’re done. That’s fantasy land. Fund raising is hard.

Burn Rate 238

Burn Rate Term Sheet CTO Hire Fractional CTO 238

Startup Professionals Musings

JULY 26, 2013

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 242

Technical Review Due Diligence Startup Term Sheet 242

Gust

DECEMBER 27, 2012

This person will be critical in rounding up other investors, drafting a term sheet, and generally getting the deal done. Before you start negotiating a term sheet with any potential investor, make sure that you GET A LAWYER , specifically, a lawyer with experience directly in the early stage financing world.

Software Review 164

Software Review Term Sheet Technical Review Angel Investor 164

Both Sides of the Table

DECEMBER 2, 2010

His term sheet series helped me at a time when I needed help. Help somebody negotiate their compensation package, introduce someone to your favorite startup CEO, agree proactively to be a reference client for somebody who didn’t ask. Give somebody a break because you would have benefited if somebody did that for you.

Europe 352

Europe France San Francisco Chicago 352

Startup Professionals Musings

DECEMBER 28, 2010

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 229

Technical Review Due Diligence Term Sheet Angel Investor 229

Startup Professionals Musings

JANUARY 20, 2019

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.

Technical Review 228

Technical Review Non-disclosure Agreement Due Diligence Term Sheet 228

This is going to be BIG.

MAY 12, 2014

I send out my own term sheets and review docs myself--especially since I''m in sydicated rounds. The creation of the fund was charged to the assets of the fund itself, and outside of that, I really don''t have a lot of legal work that needs to be done.

Investment Bankers 167

Investment Bankers Term Sheet Venture Capital Technical Review 167

This is going to be BIG.

APRIL 13, 2022

Whenever I submit a term sheet, I always caveat it by saying the following: “This is the one time we’re completely misaligned. I’m incentivized to buy up as much of the company at as low a price as possible and you’re incentivized to sell as little of the company as possible by raising the price.”. Founders seem to get that.

Founder 164

Founder Fiji CTO Hire Term Sheet 164

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.

Seed Stage 135

Seed Stage Term Sheet eCommerce Technical Review 135

View from Seed

MARCH 11, 2020

Typically, founders ask for investor references after a term sheet as been presented or there has been some clear approval from their team to move forward with the investment. Fourth, in the course of this process, you should start doing your own due diligence on your prospective investors.

Technical Review 279

Technical Review Due Diligence Term Sheet Seed Stage 279

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 Due Diligence Angel Investor 158

Startup Professionals Musings

SEPTEMBER 26, 2013

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.

Technical Review 202

Technical Review Non-disclosure Agreement Due Diligence Entrepreneur 202

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 Valuation Partner Conversion 150

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.”

Term Sheet 162

Term Sheet Founder Vesting Due Diligence Syndicate 162

Startup Professionals Musings

MARCH 27, 2016

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 120

Technical Review Due Diligence Term Sheet Offshore 120

YoungUpstarts

FEBRUARY 6, 2017

As an entrepreneur, your goal when raising financing is to get several term sheets — the documents describing the terms and conditions of financing. This is the firm that will give you a term sheet, take a leadership role in driving financing, and likely be your most active new investor. Close the deal.

Venture Capital 100

Venture Capital Term Sheet Technical Review Due Diligence 100

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.

Term Sheet 150

Term Sheet Warrant Founder Entrepreneur 150