The document summarizes key deal elements in venture capital term sheets, including preferred returns, valuation protection, management rights, and exit strategies. It analyzes and compares term sheets from two venture capital firms, Acorn Ventures and Beach Fund, on elements such as liquidation preferences, anti-dilution, dividends, conversion rights, and board representation. While there are similarities, the term sheets differ in ways that allocate control and future financing outcomes between investors and founders.
Negotiating Venture Capital Term Sheets Joyce Chuang
This document summarizes key terms for negotiating venture capital financing. It discusses structuring the financing round and valuation, investor return mechanisms like liquidation preferences and dividends, control provisions including board composition and protective voting rights, liquidity events, and other standard investor rights and closing conditions. The overall summary is that the document outlines the major components that are negotiated in a venture capital term sheet to structure the financing round and define the rights and obligations of investors and the company going forward.
This document summarizes key points from a presentation on term sheet negotiations. It discusses how to allocate value between investors and founders regarding valuation, capitalization, liquidation preferences, dividends, and other terms. It also covers managing the company through board composition, protective provisions, and drag along rights. Investor rights like right of first offer, anti-dilution, right of first refusal, and redemption are examined. Recommendations are provided on negotiating favorable terms for founders.
Deal Structures for Early Stage Financinglerchearly
The document discusses common structures for early stage financing, including common stock issued to founders and friends/family, convertible notes often used in friends/family rounds and by angels, and preferred stock. It provides details on these structures such as rights conveyed, benefits of convertible notes, liquidation preferences for preferred stock, and rights/protections included in financing agreements. The document is intended to educate startups and investors on typical deal terms for early financing rounds.
Before Series A - Convertible Note and Series Seed Funding for Startups ldef2001
Presentation explaining the differences between Convertible Notes and Seed Stage Equity, the important terms of each funding structure and the pros/cons of each.
This document summarizes key terms in a Series A term sheet for financing. It discusses control terms such as board composition, investor protective provisions, and voting rights. It also discusses economic terms such as valuation, liquidation preferences, anti-dilution, and registration rights. The document provides an overview of major issues to consider for each term and emphasizes negotiating favorable terms for founders like limiting investor control and liquidation preferences.
The document provides an overview of convertible notes as a fundraising tool for startups. It begins with background on the speaker and objectives. It then defines convertible notes and provides an example of a $500,000 note with 5% interest, a $4 million pre-money valuation cap, and a 20% discount. The document outlines key terms, pros and cons compared to equity rounds, and considerations around choosing convertible notes or a priced equity round. It concludes with parting thoughts on principles of financing strategy.
Pre-Series A Funding Vehicles ( Convertible Notes, SAFE, KISS, etc.)ideatoipo
Obtaining funding for early stage startups can be challenging. The array of funding options available to entrepreneurs can be confusing and fraught with pitfalls.
This presentation covers:
1) convertible notes
2) SAFE documents
3) KISS documents
and more!
Negotiating Venture Capital Term Sheets Joyce Chuang
This document summarizes key terms for negotiating venture capital financing. It discusses structuring the financing round and valuation, investor return mechanisms like liquidation preferences and dividends, control provisions including board composition and protective voting rights, liquidity events, and other standard investor rights and closing conditions. The overall summary is that the document outlines the major components that are negotiated in a venture capital term sheet to structure the financing round and define the rights and obligations of investors and the company going forward.
This document summarizes key points from a presentation on term sheet negotiations. It discusses how to allocate value between investors and founders regarding valuation, capitalization, liquidation preferences, dividends, and other terms. It also covers managing the company through board composition, protective provisions, and drag along rights. Investor rights like right of first offer, anti-dilution, right of first refusal, and redemption are examined. Recommendations are provided on negotiating favorable terms for founders.
Deal Structures for Early Stage Financinglerchearly
The document discusses common structures for early stage financing, including common stock issued to founders and friends/family, convertible notes often used in friends/family rounds and by angels, and preferred stock. It provides details on these structures such as rights conveyed, benefits of convertible notes, liquidation preferences for preferred stock, and rights/protections included in financing agreements. The document is intended to educate startups and investors on typical deal terms for early financing rounds.
Before Series A - Convertible Note and Series Seed Funding for Startups ldef2001
Presentation explaining the differences between Convertible Notes and Seed Stage Equity, the important terms of each funding structure and the pros/cons of each.
This document summarizes key terms in a Series A term sheet for financing. It discusses control terms such as board composition, investor protective provisions, and voting rights. It also discusses economic terms such as valuation, liquidation preferences, anti-dilution, and registration rights. The document provides an overview of major issues to consider for each term and emphasizes negotiating favorable terms for founders like limiting investor control and liquidation preferences.
The document provides an overview of convertible notes as a fundraising tool for startups. It begins with background on the speaker and objectives. It then defines convertible notes and provides an example of a $500,000 note with 5% interest, a $4 million pre-money valuation cap, and a 20% discount. The document outlines key terms, pros and cons compared to equity rounds, and considerations around choosing convertible notes or a priced equity round. It concludes with parting thoughts on principles of financing strategy.
Pre-Series A Funding Vehicles ( Convertible Notes, SAFE, KISS, etc.)ideatoipo
Obtaining funding for early stage startups can be challenging. The array of funding options available to entrepreneurs can be confusing and fraught with pitfalls.
This presentation covers:
1) convertible notes
2) SAFE documents
3) KISS documents
and more!
MIT enterprise forum alternative financing - 11-17-11lerchearly
This document discusses alternative financing options for startups, including convertible notes and preferred stock. It describes convertible notes as debt that can convert to equity and offers benefits like a simple structure and priority over common stock. Convertible notes may include features like a discount on future rounds or a valuation cap. Preferred stock represents an equity ownership interest that comes with rights over common stock. Key negotiation points for preferred stock include the company valuation, investor rights, and protective provisions.
This document summarizes key terms related to a preferred stock financing. It discusses warrant terms, offering size and valuation, liquidation preferences, participation rights, and conversion rights. The main points covered are:
- Warrants may be issued with bridge loans or preferred stock financings and allow the holder to purchase shares at a set exercise price.
- The term sheet will specify the pre-money valuation, number of shares sold, and whether warrants are included.
- Liquidation preferences typically return the purchase price to investors first and are often 1-2x the purchase price. Participating preferred may share residual proceeds.
- Conversion rights allow preferred stock to convert to common stock, usually automatically upon an
Learn from Jeffrey Char (President & CEO of J-Seed Ventures, serial entrepreneur) how to negotiate a typical venture capital term sheet.
Takeaway
-understand the terms & conditions of a term sheet
-negotiating and structuring investment deals
-negotiating terms for the benefit of founding team
The MSA Launch (http://bit.ly/1yhQPZV) is a 5-day event aiming to provide an introduction to MaGIC Academy. It is presented as a condensed version of how MaGIC Academy is going to contribute to you and the startup community. You will be able to experience a series of workshops, skill and sharing knowledge opportunity, and mentoring with our selected network of mentors.
Website : www.mymagic.my
Facebook : https://www.facebook.com/magic.cyberjaya
Twitter : https://twitter.com/magiccyberjaya
Youtube :
SlideShare : http://slidesha.re/1BfSncP
Email : enquiries@mymagic.my
This document discusses convertible debt financing. Convertible notes are short-term debt instruments that convert to preferred stock upon a qualified financing round, allowing companies to raise funds without setting a valuation. Typical terms include interest rates of 4-8%, 12-24 month terms, and conversion discounts or caps on valuation. While convertible notes provide cheaper funding than equity, terms can have unintended consequences. Alternative instruments like SAFEs (Simple Agreements for Future Equity) and KISSes (Keep It Simple Securities) aim to be more founder-friendly. The presenter recommends consulting an attorney to properly structure agreements.
How Do Convertible Notes Work For Early-stage FinancingEquidam
What is the definition of convertible debt and how to use it in early-stage startup financing. You can also see the calculations we made using our Convertible Note Calculator.
To read more take a look at this article: https://www.equidam.com/practical-advice-pricing-convertible-note/
Compute your company valuation for free at https://www.equidam.com/
The Entrepreneur's Guide to Negotiating a Venture Capital FinancingAllen Matkins
The document provides an overview of key terms that are negotiated in a venture capital financing. It discusses valuation, liquidation preference, dividend preference, anti-dilution provisions, board representation, veto rights, restrictions on founder stock transfers, and registration rights. The goal is to help entrepreneurs understand what to expect and negotiate effectively in a VC financing.
Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from Early Growth Financial Services (www.egfs.co).
This presentation explores how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!
Private Equity and Venture Capital Investment AgreementsJanice Lederman
The document summarizes key aspects of private equity and venture capital investment agreements. It discusses deal structures, essential term sheet elements, due diligence processes, equity purchase agreement terms, warrants, management equity, down-road financing issues and exit strategies. Specific issues covered include valuation, security attributes, representations and warranties, indemnities, remedies, collateral agreements and sample clause provisions.
This is the presentation deck from Real Estate Investing 101: Financing, PeerRealty's fourth in a series of on-demand educational videos. In this series, PeerRealty Head of Investments Jeff Rothbart takes viewers through the fundamentals of real estate investing, and discusses some of the key metrics that real estate investors should consider. This Financing course analyzes the different types of debt instruments that investors can expect to find in real estate deals. It also discusses common loan agreement provisions, and explains how they can affect your real estate investment.
You can view this webinar at http://resources.peerrealty.com/real-estate-investing-101-financing
Preferred stock is a type of equity security that has characteristics of both debt and equity. It has a higher claim on assets and earnings than common stock, but is subordinate to bonds and other debt. Key features include: a fixed dividend that must be paid out before common dividends; no voting rights unless dividends are in arrears; and seniority over common stock in liquidation. Preferred stock comes in different classes with varying rights, and provides tax advantages for corporations.
Understanding the effects of dilution for your startup: definition, formula, risks to take into account and term sheet rights involved.
Read more at: https://www.equidam.com/an-angel-investor-and-an-economist-on-dilution/
Compute your valuation for free at: https://www.equidam.com/
This document discusses various sources of financing for startups, including self-funding, friends and family investments, angel investors, venture capitalists, and government grants. It notes that angels and VCs have different priorities when evaluating deals, with angels focusing more on involvement and filling gaps, while VCs prioritize potential exit routes. For early financing, startups typically use convertible debt, as it has minimal costs and postpones valuation negotiations. The document also outlines some key venture capital investment terms.
Startup Seed Funding: From Bootstrapping to Equity FinancingDavid Ehrenberg
Are you ready to make the leap from bootstrapping to investment capital? If so browse through this static deck to find the following topics:
- Preparing your company for investment capital
- Current deal flow
- Convertible notes vs series seed preferred
- Valuation and purchase terms
- Term sheet negotiation
- And more!
Venture Capital Term Sheets (April 7, 2009)glencaplan
This document discusses key aspects of venture capital term sheets, including sources of capital for startups, typical capital structures, angel investors versus venture capitalists, how to approach angels, venture capital requirements, the current venture capital environment, and four key principles of term sheets: valuation, exit strategy, downside protection, and control. It provides examples and explanations of liquidation preferences, anti-dilution provisions, and rights typically granted to investors in term sheets.
This document provides an overview of topics relevant to early-stage startups seeking funding, including when to incorporate, what investors examine in due diligence, and common terms in funding agreements. It recommends incorporating with legal counsel to limit personal liability, establish clear ownership of intellectual property, and facilitate a smooth due diligence process for investors. Key points covered include the differences between equity and debt financing, typical preferred stock terms like valuation, liquidation preference, and protective provisions, and debt financing terms such as interest rates, maturity dates, and conversion qualifications. The document emphasizes being prepared with organized corporate records to impress investors and simplify closing a round of funding.
FOR PUBLICATION - Piedra, Daniel - After Cuozzo Speed Tech LLC v LeeDaniel Piedra
The document discusses the Supreme Court's 2016 decision in Cuozzo Speed Technologies v. Lee regarding inter partes review (IPR) procedures established by the America Invents Act. It surveys top patent litigators on their views of the decision's implications. The litigators suggest that changes to patent rules, including those from Cuozzo, do not ultimately affect patent litigation or innovation. This raises questions about whether substantive and procedural patent law changes have significant impacts on inventors, industry, and innovation.
IP & Business Presentation - Daniel Piedra - PublicationDaniel Piedra
The document discusses the Supreme Court case Cuozzo Speed Technologies, LLC v. Lee, which addressed two issues regarding inter partes review (IPR) under the America Invents Act: 1) whether the Patent Trial and Appeal Board's (PTAB) decisions to institute IPR are judicially reviewable, and 2) whether PTAB can use the "broadest reasonable interpretation" standard to construe patent claims in IPR. The Court held that PTAB's institution decisions are generally not reviewable but may be in limited circumstances, and that PTAB can continue using the broadest reasonable interpretation standard in IPR. The decision was seen as preserving the current IPR system but limiting opportunities for patent owners to
MIT enterprise forum alternative financing - 11-17-11lerchearly
This document discusses alternative financing options for startups, including convertible notes and preferred stock. It describes convertible notes as debt that can convert to equity and offers benefits like a simple structure and priority over common stock. Convertible notes may include features like a discount on future rounds or a valuation cap. Preferred stock represents an equity ownership interest that comes with rights over common stock. Key negotiation points for preferred stock include the company valuation, investor rights, and protective provisions.
This document summarizes key terms related to a preferred stock financing. It discusses warrant terms, offering size and valuation, liquidation preferences, participation rights, and conversion rights. The main points covered are:
- Warrants may be issued with bridge loans or preferred stock financings and allow the holder to purchase shares at a set exercise price.
- The term sheet will specify the pre-money valuation, number of shares sold, and whether warrants are included.
- Liquidation preferences typically return the purchase price to investors first and are often 1-2x the purchase price. Participating preferred may share residual proceeds.
- Conversion rights allow preferred stock to convert to common stock, usually automatically upon an
Learn from Jeffrey Char (President & CEO of J-Seed Ventures, serial entrepreneur) how to negotiate a typical venture capital term sheet.
Takeaway
-understand the terms & conditions of a term sheet
-negotiating and structuring investment deals
-negotiating terms for the benefit of founding team
The MSA Launch (http://bit.ly/1yhQPZV) is a 5-day event aiming to provide an introduction to MaGIC Academy. It is presented as a condensed version of how MaGIC Academy is going to contribute to you and the startup community. You will be able to experience a series of workshops, skill and sharing knowledge opportunity, and mentoring with our selected network of mentors.
Website : www.mymagic.my
Facebook : https://www.facebook.com/magic.cyberjaya
Twitter : https://twitter.com/magiccyberjaya
Youtube :
SlideShare : http://slidesha.re/1BfSncP
Email : enquiries@mymagic.my
This document discusses convertible debt financing. Convertible notes are short-term debt instruments that convert to preferred stock upon a qualified financing round, allowing companies to raise funds without setting a valuation. Typical terms include interest rates of 4-8%, 12-24 month terms, and conversion discounts or caps on valuation. While convertible notes provide cheaper funding than equity, terms can have unintended consequences. Alternative instruments like SAFEs (Simple Agreements for Future Equity) and KISSes (Keep It Simple Securities) aim to be more founder-friendly. The presenter recommends consulting an attorney to properly structure agreements.
How Do Convertible Notes Work For Early-stage FinancingEquidam
What is the definition of convertible debt and how to use it in early-stage startup financing. You can also see the calculations we made using our Convertible Note Calculator.
To read more take a look at this article: https://www.equidam.com/practical-advice-pricing-convertible-note/
Compute your company valuation for free at https://www.equidam.com/
The Entrepreneur's Guide to Negotiating a Venture Capital FinancingAllen Matkins
The document provides an overview of key terms that are negotiated in a venture capital financing. It discusses valuation, liquidation preference, dividend preference, anti-dilution provisions, board representation, veto rights, restrictions on founder stock transfers, and registration rights. The goal is to help entrepreneurs understand what to expect and negotiate effectively in a VC financing.
Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from Early Growth Financial Services (www.egfs.co).
This presentation explores how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!
Private Equity and Venture Capital Investment AgreementsJanice Lederman
The document summarizes key aspects of private equity and venture capital investment agreements. It discusses deal structures, essential term sheet elements, due diligence processes, equity purchase agreement terms, warrants, management equity, down-road financing issues and exit strategies. Specific issues covered include valuation, security attributes, representations and warranties, indemnities, remedies, collateral agreements and sample clause provisions.
This is the presentation deck from Real Estate Investing 101: Financing, PeerRealty's fourth in a series of on-demand educational videos. In this series, PeerRealty Head of Investments Jeff Rothbart takes viewers through the fundamentals of real estate investing, and discusses some of the key metrics that real estate investors should consider. This Financing course analyzes the different types of debt instruments that investors can expect to find in real estate deals. It also discusses common loan agreement provisions, and explains how they can affect your real estate investment.
You can view this webinar at http://resources.peerrealty.com/real-estate-investing-101-financing
Preferred stock is a type of equity security that has characteristics of both debt and equity. It has a higher claim on assets and earnings than common stock, but is subordinate to bonds and other debt. Key features include: a fixed dividend that must be paid out before common dividends; no voting rights unless dividends are in arrears; and seniority over common stock in liquidation. Preferred stock comes in different classes with varying rights, and provides tax advantages for corporations.
Understanding the effects of dilution for your startup: definition, formula, risks to take into account and term sheet rights involved.
Read more at: https://www.equidam.com/an-angel-investor-and-an-economist-on-dilution/
Compute your valuation for free at: https://www.equidam.com/
This document discusses various sources of financing for startups, including self-funding, friends and family investments, angel investors, venture capitalists, and government grants. It notes that angels and VCs have different priorities when evaluating deals, with angels focusing more on involvement and filling gaps, while VCs prioritize potential exit routes. For early financing, startups typically use convertible debt, as it has minimal costs and postpones valuation negotiations. The document also outlines some key venture capital investment terms.
Startup Seed Funding: From Bootstrapping to Equity FinancingDavid Ehrenberg
Are you ready to make the leap from bootstrapping to investment capital? If so browse through this static deck to find the following topics:
- Preparing your company for investment capital
- Current deal flow
- Convertible notes vs series seed preferred
- Valuation and purchase terms
- Term sheet negotiation
- And more!
Venture Capital Term Sheets (April 7, 2009)glencaplan
This document discusses key aspects of venture capital term sheets, including sources of capital for startups, typical capital structures, angel investors versus venture capitalists, how to approach angels, venture capital requirements, the current venture capital environment, and four key principles of term sheets: valuation, exit strategy, downside protection, and control. It provides examples and explanations of liquidation preferences, anti-dilution provisions, and rights typically granted to investors in term sheets.
This document provides an overview of topics relevant to early-stage startups seeking funding, including when to incorporate, what investors examine in due diligence, and common terms in funding agreements. It recommends incorporating with legal counsel to limit personal liability, establish clear ownership of intellectual property, and facilitate a smooth due diligence process for investors. Key points covered include the differences between equity and debt financing, typical preferred stock terms like valuation, liquidation preference, and protective provisions, and debt financing terms such as interest rates, maturity dates, and conversion qualifications. The document emphasizes being prepared with organized corporate records to impress investors and simplify closing a round of funding.
FOR PUBLICATION - Piedra, Daniel - After Cuozzo Speed Tech LLC v LeeDaniel Piedra
The document discusses the Supreme Court's 2016 decision in Cuozzo Speed Technologies v. Lee regarding inter partes review (IPR) procedures established by the America Invents Act. It surveys top patent litigators on their views of the decision's implications. The litigators suggest that changes to patent rules, including those from Cuozzo, do not ultimately affect patent litigation or innovation. This raises questions about whether substantive and procedural patent law changes have significant impacts on inventors, industry, and innovation.
IP & Business Presentation - Daniel Piedra - PublicationDaniel Piedra
The document discusses the Supreme Court case Cuozzo Speed Technologies, LLC v. Lee, which addressed two issues regarding inter partes review (IPR) under the America Invents Act: 1) whether the Patent Trial and Appeal Board's (PTAB) decisions to institute IPR are judicially reviewable, and 2) whether PTAB can use the "broadest reasonable interpretation" standard to construe patent claims in IPR. The Court held that PTAB's institution decisions are generally not reviewable but may be in limited circumstances, and that PTAB can continue using the broadest reasonable interpretation standard in IPR. The decision was seen as preserving the current IPR system but limiting opportunities for patent owners to
Understanding Terms in Venture Capital Financingsideatoipo
This presentation covers the key terms negotiated between a growth stage company and its investors in financing transactions, including:
1) pre-money valuation and deal pricing
2) dividend rights
3) liquidation preferences and participation
4) conversion rights
5) anti-dilution protection
6) veto rights
7) preemptive rights
8) redemption rights
Harvard Law Entrepreneurship Project (HLEP) - Fundraising 101David Chang
This document summarizes a lunch talk on fundraising basics given by David Chang. It discusses determining the appropriate funding source based on a company's growth trajectory, the stages of venture capital funding, how to structure a fundraising round, negotiating valuation, and tips for pitching to investors. Key points include having a financial model, use of proceeds, milestones, creating a target investor list, closing deals over preferred stock or convertible debt, and the fundraising process typically taking 3-6 months.
Early Stage Venture Financings: Terms, Negotiations, and Closingideatoipo
Getting your first round of financing closed is a critical milestone for every start up.
The speakers will review how to find the right investor, how to negotiate the key terms with a view to future rounds, and how to prepare for the due diligence process to get to a quick closing.
This document provides guidance on fundraising for a seed round of funding. It outlines key steps including preparing financials and pitch materials, identifying target investors, socializing your idea, conducting the fundraising campaign, and closing the deal. Important considerations are determining how much funding is needed based on financial projections, establishing milestones to prove business model risks are mitigated, and negotiating valuation and equity stakes. The process typically takes 3-6 months and success relies on building relationships, finding investors, and addressing their diligence needs.
Moneyball: A Quantitative Approach to Angel Investing (Austin, TX - Aug 2012)Paul Singh
The document discusses an approach to early stage startup investing called "Moneyball startups". It advocates treating startup investing as a process rather than random bets. The approach focuses on risk mitigation through diversification across a large portfolio of deals, with initial bets designed to provide data for follow-on investments. It also emphasizes terms like convertible notes that are quicker to execute and avoiding innovating on legal documents.
2015 Venture Capital & Startup Traction ReportMattermark
Dive into venture funding trends
Take an in-depth look at the funding events, growth signals, exits and other insights into the fastest growing private companies. It’s compiled by our independent, in-house editorial staff to help you make fast, informed and accurate decisions.
Moneyball: A Quantitative Approach to Angel Investing (DC - Sept 2012)Paul Singh
The document discusses an approach to early stage startup investing called "Moneyball startups". It advocates for a quantitative portfolio approach using data analysis, diversification across many deals, and smaller initial investments to allow for experimentation and fast failure. This approach aims to provide controlled risk and outsized returns through high deal volume, early exits, and follow-on funding for top performers. The document provides advice on deal terms, avoiding board seats, and being an active investor focused on information asymmetry.
Building Startup Ecosystems (Cairo, Oct 2014)Dave McClure
The document discusses changes in venture capital and building startup ecosystems globally. It notes that technology startups now require less capital to develop products and reach customers due to reduced infrastructure costs and access to online platforms. Venture capital has also evolved, with more "lean" or quantitative approaches involving many small bets on early-stage startups. Critical factors for building startup ecosystems include education, mentoring, capital access, and distribution platforms. The speaker argues there is large potential for funding startups globally, not just in major tech hubs, given the availability of skilled entrepreneurs and growing markets worldwide.
- There has been significant disruption in the venture capital industry due to changes like the rise of internet users, faster internet speeds, increased mobility, and social connectivity.
- The venture capital model has changed from relying primarily on board interactions and "VC knows best" to providing more operational support, thought leadership, peer learning platforms, and industry insights for portfolio companies.
- Leading venture capital firms are differentiating themselves by investing in extensive operational support services, transparency through blogging, peer-to-peer learning opportunities, and leveraging their domain expertise and relationships within specific industries.
The State of the Venture Capital Industry is an annual report produced by TrueBridge Capital Partners highlighting the trends in venture fundraising, investing, valuations, exits, and performance.
All data sourced from Thomson Reuters, VentureSource, CB Insights, PitchBook, and Cambridge Associates.
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Dave McClure
500 Startups is a global seed fund and startup accelerator with over 1,500 companies and 3,000 founders in its portfolio. It has 125 people across 30 partners in 20 countries. Some of its notable exits include Credit Karma ($3.5B), Twilio ($1B+), Grab ($1B+), and Wildfire (acq. by Google for $350M).
The presentation discusses how building startups and venture capital investing has changed, with startups now requiring less capital and having more distribution channels online. It outlines 500 Startups' "lean" portfolio approach of making many small bets across different stages. The final section discusses how 500 Startups aims to engineer startup ecosystems in emerging markets by providing capital
Patterns of Successful Angel Investing by Simeon SimeonovSimeon Simeonov
Sim Simeonov's presentation from Angel Bootcamp 2011 teaches lessons for successful angel investing based on statistical analysis of thousands of angel investments over a twenty year period. For more info, see http://sim.vc/angels
An inside look at a $1M seed round. Props to Daniel Odio of Appmakr for working with me on this.
Check out the full map at http://brendanbaker.co/anatomy.pdf and join the Quora fun at http://b.qr.ae/m3xRAI.
Dave McClure, a founding partner at 500 Startups, gave a presentation on technology trends in 2017. He discussed how startups have become cheaper, faster, and better. He also talked about how VCs are making lots of small bets through many new, small funds. McClure highlighted several investment areas including fintech, AI, AR/VR, blockchain, and other new technologies. He emphasized 500 Startups' strategy of making many small investments to find the next big winners.
This document summarizes a presentation on seed financing structures for startups. It discusses common share equity, convertible debt, and preferred shares as options for seed financing. It also covers topics like capitalization tables, valuation, and terms of convertible notes from the Business Development Bank of Canada (BDC). Examples of capitalization tables are provided to illustrate how ownership is allocated for founders, investors, and option pools through different financing rounds.
- Early stage financing is the fifth of five key elements of startup success and involves obtaining funding from sources like venture capital.
- Venture capital involves investors providing funds to startups in exchange for equity, with the goal of a high return on investment within a few years, typically through acquisition or IPO. It is best for opportunities that require large amounts of cash but the startup must have a clear path to an "exit."
- When considering venture capital, founders should understand what types of companies typically receive funding, evaluate their strengths on the five factors of startup success, and seek outside advice to improve their chances.
The document discusses key factors that determine venture capital deal terms. It notes that deal terms are influenced by the type of investor, size of the investor's fund, and economics of the investment opportunity. Some major deal elements discussed include preferred returns for investors, protection of investor valuation and position for future funding rounds, management rights for investors, and exit strategies for investors such as IPOs, acquisitions, and stock redemption.
This document provides an overview of key considerations when structuring international series A investment rounds. It discusses company valuation, investment amounts, capitalization tables, liquidation preferences, anti-dilution protection, conversion rights, use of proceeds, board appointment rights, protective provisions for investors, and other common terms in a term sheet. The goal is to negotiate a comprehensive term sheet that will guide the preparation of binding investment documents.
Equity Fundraising Founders Basics for Founders | Mohammed Elayan | Lunch & L...UCICove
This document provides an overview of equity fundraising basics for founders, including convertible notes, typical considerations for equity fundraising, and economics terms like price, liquidation preference, and pay-to-play provisions. It discusses how convertible notes can help founders and investors defer valuation decisions, and explains seed rounds, venture rounds, pre-money and post-money valuation. It also defines liquidation preferences, participating vs. non-participating shares, and different types of pay-to-play provisions.
This document discusses convertible debt financing, which is a loan that can be converted to equity. Convertible debt is commonly used as a "bridge" between equity rounds, and has become a typical way to do seed stage deals. While it puts off discussions of valuation and can be simpler than equity deals, convertible debt financing can also become complex. The document outlines basic terms like interest rates, conversion discounts, caps on conversion value, and conditions for conversion. It also notes potential complexities and subtleties to consider from the perspectives of both entrepreneurs and investors.
This document summarizes key terms in a typical Series A term sheet for startup financing. It discusses whether to use convertible notes or equity, including valuation considerations for each. The economics section outlines terms like pre-money valuation, option pools, liquidation preferences, dividends, and vesting. Control terms include board composition, investor protective provisions, drag-along rights, and mandatory conversion. Other sections cover representations, information rights, registration rights, future financing rights, and closing conditions. The document provides an overview of important deal points for founders to understand in a Series A term sheet.
Funding 101 for Tech Entrepreneurs & StartupsRoger Royse
Roger Royse, founder of the Royse Law Firm, discusses the various options available to entrepreneurs when it comes to funding their startup.
Topics include:
1) What are the best funding options for entrepreneurs to scale their business?
2) When should entrepreneurs pursue external funding?
3) How do entrepreneurs choose the right investor?
4) What alternative sources of funding are available?
5) How and why should a founder stage their funding rounds?
6) When should a founder think about exiting?
7) How can advisors help with the funding process?
This presentation discusses financing options for early stage companies, including convertible notes and seed rounds. Convertible notes are simple and inexpensive, but can accumulate debt on the balance sheet. Seed rounds value the company through preferred stock but are more complex and expensive. The presentation provides details on key terms and considerations for each option.
This chapter provides an overview of equity securities. It describes the main types of equity investments including common shares, preferred shares, private equity, and foreign equities. It also discusses the risk and return characteristics of different equity securities and how equity finances a company's assets. The chapter aims to describe various equity securities and compare their features including their role in corporate financing, relative risk-return profiles, and implications for required rates of return.
1) The document outlines key lessons learned from a corporate finance course, including that companies should choose projects and capital structures that maximize shareholder value.
2) Capital budgeting involves finding and analyzing long-term investment projects using techniques like payback period, NPV, and IRR to select projects that maximize shareholder value.
3) When raising external equity or debt, companies should consider the various financing options and terms to minimize their overall cost of capital.
This document provides an overview of common terms in debt and equity term sheets. It discusses key terms related to valuation, security type, control, liquidation events, governance, and closing conditions. The most negotiated terms typically relate to valuation, type of security, board composition, financing thresholds, and anti-dilution provisions. The document is intended to outline the key concepts and terms that are generally included in term sheets for debt and equity financings.
This document discusses various capital market instruments. It defines capital markets as dealing with medium to long term funds and describes primary roles as raising funds for governments, banks and corporations through stocks and bonds. It then discusses types of capital market instruments including equity (common/preferred stocks), debt (bonds, mortgages), hybrids (convertible bonds) and insurance instruments. The document provides details on features and types of these various capital market instruments.
This document summarizes various network solutions, wireless broadband offerings, and telecom value-added services. It provides a wide variety of scalable network solutions that can enable lightning-fast network speeds. It also offers customized content-based services over SMS, USSD, and WAP.
The document discusses various types of early stage financings for startups, including bootstrapping, founder preferred shares, friends and family funding, customer funding, convertible debt/equity, SAFE instruments, incubators, angel investments, seed rounds, and Series A venture rounds. It provides brief descriptions of each type of financing, highlighting key elements like size, source of funding, security type used, valuation requirements, control rights implications, and liquidation preferences.
How to Get Your Startup Ready for Venture Capital Funding (Idea To IPO)Roger Royse
Venture capital funding is seen as the holy grail for a startup, often improving the company’s chances of a big IPO or exit dramatically. Most companies start their lives with the hope, if not the expectation, that they will eventually receive venture funding. This presentation will cover what a company should do to prepare for venture funding, what steps to take, what the venture capitalists expect and how to avoid venture capital deal breakers.
The speaker will discuss:
1) what types of companies are candidates for venture capital funding
2) the essential assets, qualities or aspects that your company must have to approach a venture capitalist
3) how (and when) you should value your company for venture capitalists
4) how you can protect yourself against dilutive rounds, losing control and being removed from management
5) how to get your company in front of venture capitalists
and more!
This document discusses various forms of non-conventional financing, including seller financing, hard money lending, private investors, and joint venture partnerships. Seller financing involves the seller providing financing terms to the buyer. Hard money lending provides short-term, high-interest loans backed by property assets rather than borrower qualifications. Private investors require a return on their money through interest payments. Joint venture partnerships allow individuals to partner and share risks, resources, and expertise to finance deals together. The document provides examples of different deal structures that creatively combine these non-conventional financing options.
More here: http://www.thecapitalnetwork.org/
Are you thinking about what you need to fund your company? Where do you start? Funding is not “one size fits all”. Every company has to approach their pathway to funding with a unique approach. Join our fundraising experts for an in-depth discussion of what options you have for funding and how to decide which paths are right for you and your company. We’ll have a specific focus on life science focused companies and technologies and the funding choices available.
Experts:
Jeremy Halpern – Nutter McClennen & Fish
Yumin Choi – HLM Venture Partners
Paul Hartung – Cognoptix, Inc
Are you thinking about what you need to fund your company? Where do you start? Funding is not “one size fits all”. Every company has to approach their pathway to funding with a unique approach. Join our fundraising experts for an in-depth discussion of what options you have for funding and how to decide which paths are right for you and your company. We’ll have a specific focus on life science focused companies and technologies and the funding choices available for them.
Similar to Presentation - Venture Capital Financing, Major Deal Elements (20)
Presentation - Venture Capital Financing, Major Deal Elements
1. Major Deal Elements
Venture Capital Term Sheets Analysis
Daniel J. Piedra
J.D., expected ‘16
University of San Diego School of Law
2.
3. Major Deal Elements
1. A Preferred Return
2. Protection of Valuation
and Position re: Future
Money
3. Management of the
Investment
4. Exit Strategies
4. Preferred Return
❖ Perception of the VC Investor:
❖ When the Investor writes the check, he has done
almost everything he promised
❖ The entrepreneur has done nothing yet
❖ Result: The VC wants its money to be paid back
before the Entrepreneur gets his/her return.
❖ Instrument: CONVERTIBLE PREFERRED STOCK
5. Preferred Return
❖ Dividends:
❖ Paid to Preferred First
❖ Cumulative or Accruing
❖ Liquidation Preference
❖ “Straight” Liquidation Preference: The Preferred receives its original
investment amount plus accrued dividends (if any) before Common
receives anything.
❖ Participating (“Double Dip”) Preferred: The Preferred first gets its
liquidation preference and then shares any remaining proceeds with
Common. Increasingly subject to a cap of 3X or 4X (including preference).
6. Preferred Return: Liquidation Events
❖ Liquidation, dissolution, sale of assets
❖ Money comes into corporation
❖ Money paid out to stockholders to redeem stock
❖ “Deemed liquidation”— merger or other positive
event
❖ Consideration may be stock or cash
❖ Consideration may go directly to stockholders
7. Protection of Valuation:
Conversion and Anti-dilution
❖ Anti-dilution Adjustment increases the number of
shares received on conversion of Preferred
❖ What Triggers Anti-dilution Adjustment?
❖ Issuance or “deemed issuance” of Common at less than
preferred issuance price
❖ “Deemed issuance”— adjust upon issuance of derivative
security; if common never issued, readjust later
❖ Options, warrants
❖ Convertible securities
8. Protection of Valuation:
Conversion and Anti-dilution
❖ Conversion Events: When Does Preferred Convert Into Common?
❖ Voluntary
❖ Forced: often some % of Preferred can force conversion of all
❖ Automatic--upon “Qualified IPO”
❖ Minimum total offering; minimum share price (usually 3 to 5 times
initial purchase price)
❖ Conversion Ratio--initially 1:1
❖ Adjustments--stock splits, etc; price anti-dilution
❖ Exceptions--option pool, conversion of preferred, outstanding
warrants, other existing conditions, other special exceptions
9. Valuation
❖ Conversion Ratio:
❖ Original Purchase Price (OPP)/ Conversion Price (CP)
❖ Initially OPP = CP, so Conversion Ratio = 1:1
❖ “Full ratchet”: CP reset to equal price at which diluting security is sold
❖ “Weighted average”: CP new = CP old x R
❖ Where R = (N + M/CP old)/(N+S)
❖ N = old shares outstanding (fully diluted)
❖ S = new shares to be issued
❖ M = new money ($)
10. Protection of Position: Preemptive Rights
❖ Permits Investors to participate pro rata in future
financings, to preserve their percentage ownership
❖ Subject to exclusions:
❖ Option pool issuances
❖ Strategic alliances & licenses
❖ “Pay to Play”
11. Preemptive Rights, cont'd
❖ Granted by Founders/Other Investors
❖ First Refusal: Gives Investors the right to acquire
shares offered by the grantor, pro rata
❖ May be partial or “all or nothing”
❖ Tag Along (Co-Sale): Gives Investors the right to sell
shares pro rata if a Founder sells shares to others
❖ Helps lock in Founders
12. Management of the Investment
❖ Board Seat(s)
❖ Importance of the “Independent Director(s)”
❖ Business Approvals
❖ Capital Expenditures, etc.
❖ Approval of Annual Budget and Operating Plans
❖ Information Rights
❖ Reports, financial statements — NDA advised
13. Other Management Considerations
❖ Option Pools
❖ Traditionally 12% to 18% at Round One
❖ Two Year Pool
❖ Vesting of Founders/Key Management Stock
❖ Non-Competition and Invention Agreements
14. Exit Strategies
• IPOs and Registration Rights
• Sale/Acquisition
• Redemption of Stock
• Registration Rights
15. Registration Rights
❖ Shares cannot be freely sold without filing a
Registration Statement with the SEC
❖ Only the Company can file
❖ So the Investors negotiate for certain
Registration Rights to insure a contractual
ability to exit into the public markets
16. Registration Rights, cont’d
❖ Enables Investors to sell shares publicly by means
of a registered offering
❖ Sales prior to end of 1-year holding period
❖ Avoid compliance with volume limitations of
Rule 144
❖ Registration paid for by the Company
❖ Are Founders included?
17. Demand Registration Rights
❖ Exercisable after the IPO or within 3-7 years of
investment
❖ Can be exercised 1 to 3 times;
❖ Can be exercised by holders of 20-50% of the
registrable shares, with value of [$$$]
18. Piggyback Registration Rights
❖ Investors “piggyback” on another registration
❖ Can they participate in other shareholders’ demand
rights?
❖ Subject to underwriter “cutback”
❖ S-3 Registrations generally unlimited
❖ Acorn
❖ Beach
19. Redemption
❖ The Company’s repurchase of Preferred Stock at
the demand of the Investors
❖ When Used: When the Company hasn’t gone
public
❖ Because Founders Don’t Want To
❖ Because Business Doesn’t Develop Into an IPO
Type
20. Redemption, cont’d
❖ When Does Redemption Kick In?
❖ Typically after Five (5) years
❖ Often phased over Three (3) years
❖ Trigger
❖ Automatic
❖ Upon vote of Preferred
❖ Price
❖ Initial Purchase Price paid plus accrued dividends
❖ Sometimes additional return
❖ Different classes of preferred — later classes won’t let earlier investors out
first
21.
22. Macon, Inc.
Venture Capital Term Sheets Analysis
Daniel J. Piedra
J.D., expected ‘16
University of San Diego School of Law
29. Similarities
❖ Investment Amount: $5 million
❖ Series A Convertible Preferred Stock
❖ Conversion Rate
❖ Registration Rights
❖ Information Rights
❖ No Termination Rights
❖ Closing Conditions: Acorn — “Securities Purchase Agreement”;
Beach — “Conditions Precedent to Financing”
❖ No “No-shop” Provision
30. Differences
❖ Valuation
❖ Acorn: Pre-Calculated
❖ $7.53 million, with 3 million “performance shares”
❖ Performance Shares: “Shares held in escrow; non-
issuable if Macon doesn’t reach performance
milestone
❖ Beach: Standard, with employee option pool
31. Dividends (Differences)
❖ Acorn:
❖ Non-cumulative — $0.08 (standard) on a Series A Preferred
Outstanding, when and as declared by the Board of Directors
❖ Other dividends: Participates with Common Stock on an as-converted
basis
❖ Most beneficial to company
❖ Beach
❖ Cumulative — most beneficial to investors; bad for company
❖ 10% (above standard) per year commencing on one year
anniversary of issuance of Series A Preferred
❖ Ends when dividend accrual reaches 25% of Series A Purchase Price
❖ Can also cease with consent of Board of Directors
32. Liquidation (Differences)
❖ Acorn
❖ 3x multiple — A return of three times the initial pay
issuance price
❖ Lower than standard 5x
❖ Beach
❖ 1 1/4 multiple — A return of 1.25 the initial purchase
price plus all declared but unpaid dividends
❖ Pro rata distribution
33. Automatic Conversion (Differences)
❖ Acorn
❖ Majority of Preferred can consent to conversion
❖ No assurance that VC can control or at least veto and /or change
number of holders
❖ Valuation: $25 million offering at $5 million/share
❖ Beach
❖ Valuation: $25 million offering at $20/share
❖ Consent of Preferred not required
❖ Automatic conversion at IPO
34. Liquidation Differences, cont’d
Acorn:
❖ Better option
❖ Investor payment is approx. $5,330,000 at a $0.08 dividend
❖ Preferred is capped at three times initial investment amount
❖ Lower than standard (5x)
❖ Better for a merger and IPO because Investors are capped at
3x their initial investment
35. Liquidation Differences, cont’d
Beach:
❖ Larger initial payback to the investors of roughly
$7,500,000 at a $0.25 unpaid dividend
❖ Allows for pro rata distribution of remaining
proceeds to all shareholders
❖ No multiplier on distribution of remaining assets
❖ Excludes reference to subsequent financings
36. Anti-Dilution (Differences)
❖ Acorn
❖ Broad-based weighted average
❖ Carve out: No adjustment for issuance up to 3 million Common to
employees, directors, etc., pursuant to board-approved equity
incentive plans
❖ Helps to retain talent and incentivize employees
❖ Beach
❖ Weighted average
❖ Share issuance of less than 50% of Series A Purchase Prices slips to
full ratchet
❖ Conditional: Only if Series A holder invests its pro rata share
37. Voting Rights
Acorn
❖ Standard list that requires 60% approval of Preferred, including:
❖ Creation / issuance of senior securities
❖ Increase in number of authorized shares of Preferred
❖ Any changes in rights adverse to Preferred (typical)
❖ Change of control
❖ Dividend or distribution of capital stock
❖ Any transaction involving all or substantially all company assets
Beach
❖ Friendlier terms
❖ Class vote with Common on as-converted basis on all matters presented to stockholders
❖ Exception: Preferred entitled to separate vote under Protective Provisions —
supermajority (does not state exact number) consent required for corporate actions to be
agreed upon at a later date
38. Rights of First Refusal & Co-Sale
❖ Acorn
❖ Right of First Refusal
❖ Preferred has
❖ (1) pro rata right based on equity ownership to
participate in subsequent equity financings; and
❖ (2) right to consider purchase of any potential sale of
Common stock
❖ Right of Co-Sale: Except through an IPO sale, Preferred have
right to participate in Common transferring of shares
❖ Beach
❖ Neither Right of First Refusal nor Co-Sale Rights
40. Board Representation
❖ Acorn
❖ Favorable to investors
❖ If Performance Shares released, then investors have option to replace the
outside director with a investor-chosen director
❖ Harmful to control
❖ Beach
❖ More favorable to Founders
❖ Arrangements include:
❖ One member elected by the Founder;
❖ Two Series A Investor-elected representatives;
❖ One outsider company nominated; and
❖ One outsider company nominated and acceptable to all
41. #2: The No Frills
Term Sheet
On-its-Face
Selection of One Term
Sheet
42. Selection: Beach Fund
❖ Acorn has three investors;
potential conflicts
❖ Dividend term concerning but
negotiation — Board’s consent
authority mitigating factor
❖ Simple Board structure
❖ Acorn’s Registration Rights
potential to be expensive
❖ Better liquidation preference
(except for merger)
43. #3: Term Alterations During Negotiations
1.Valuation
2.Liquidation Preference
1. Caps
3.Anti-Dilution Provisions
4.Dividends
5.Voting Rights
6.Redemption Rights
7.Founders Vesting Rights
8.Board Composition
9.Miscellaneous
44. Valuation
❖ Risk of "counting chickens before the eggs have
hatched”
❖ Goal: Increase value placed on company to
minimize cost of VC investment
❖ Develop financial projections for time of likely VC
exit
45. Liquidation Preference
❖ Goal: Cap on Participating Preferred
❖ Non-Participating Preferred
❖ Cannot participate as common shareholders
❖ Aim for non-participating preferred shares, but
odds are slim
❖ IPO inapplicable
46. Dilution
❖ Focus on definition of “Outstanding Securities”
❖ Investors want full ratchet
❖ Conversion price of preferred is adjusted downward for a dilutive
issuance on a dollar-for-dollar basis
❖ Least favorable to company
❖ Always try to get a “floor” on ratchet
❖ Company wants broad-based provision
❖ Calculating dilution based upon a “weighted average” more beneficial to
the company
❖ Easily negotiable
47. Dividends
❖ “When as declared by Board” – a non-cumulative dividend
❖ If Board does not declare then there is no dividend
❖ Standard for an early stage company
❖ Typical not to get a dividend every year – VC more
interested in getting a bigger return at end, rather than a bit
back every year
❖ For later-stage companies, it is more common to see
cumulative dividend, generally paid out
❖ These companies have more money and investors may
want to start seeing return
48. Voting Rights
❖ Focus on limiting to events that directly impact preferred
rights or investments
❖ holder of Preferred will have the
❖ 1:1 votes / share ideal
❖ Avoid provisions that give investors too much management
control
❖ Acorn: Substantial control requirements
❖ Beach: Certain corporate actions requires “supermajority”
vote by Series A Preferred
❖ Indicated flexibility
49. Founders Vesting Rights
❖ Negotiate for acceleration in the event of change of
control or termination
❖ Request shorter vesting period
❖ Acorn: 4 years for employees with 12-month cliff
❖ Founders: 25% instant vesting, the rest spread out
for three years
❖ Beach: Same, except unvested portion subject to
buyback provision
50. Board Composition
❖ Heavily negotiated
❖ All about control
❖ Critical for exits
❖ Common for VCs to want at least one seat on the board (and perhaps
more depending on the amount invested)
❖ Focus on the final seat
❖ Will preferred and common vote together as a single class or
separately?
❖ Additional control granted if Company fails to meet benchmarks?
❖ Negotiations will focus on amount invested and level of control sought or
required
51. Rights of First Refusal & Co-Sale
Acorn
❖ Right of First Refusal too broad — includes all Series
A Preferred
❖ Recommended: Preferred may exercise such right
only at a price equal to the lower of:
❖ (i) the price offered by the proposed third party
purchaser; and
❖ (ii) the price most recently set by the Board of
Directors as the fair market value of the Common.
52. Miscellaneous
❖ Information Rights
❖ Seek appropriate restrictions such as a non-disclosure
agreement
❖ Protective Provisions
❖ Ensure that VCs do not have too much control
❖ Drag Along Rights
❖ Focus on appropriate thresholds
53. #4: Slow Growth or
Fast Growth
Benefits &
Drawbacks for
Company
54. • Instant growth mean results in higher valuation from subsequent investors
• If passion for company is high, then slow growth best option — but VC
investors wary
• Hobson’s Choice
• Key Determinant of Valuation: Risk
• Low valuation at start up
• Limit involvement with too many investors so as not to set unreachable
milestones
• Value of company grows and risks decrease as milestones are reached
• Result: Cost of company shares increase
• Ultimate Question: What is goal of company?
• Large Business
• Small Business
56. Acorn:
•Automatic Conversion: Upon IPO, preferred shares are converted to
common, whereas the VC loses liquidation preference
•Beneficial to Company
•Vesting Provision
•One-year accelerated vesting following change of control transaction
•Favorable to Founder
Beach:
•Automatic conversion: For IPO, subject to share price limitation and
aggregate proceeds offering
•70% preferred holders, acting as single voting class, can elect to not treat a
consolidation or merger as a dissolution or winding up
•Favorable to preferred, because liquidation preference survives merger or
consolidation
•Vesting Provision
•Restricts Founders’ access to shares with 48-month vesting period; early
exit poses challenge
58. •Reputation
•Good chemistry with leaders
•Experience
•Track record
•Length of operation
•Successful investments
•Post-exit relationships with previous partners
•Successful management and operational structure
Personalities, Management
& Track Record
59. VC Involvement:
Normally involves a representation on board
Other factors:
Active
•Value-added services (i.e., marketing, market knowledge, recruitment, etc.)
•An active partnership
Passive / Major Decisions
•Involvement in major decisions
•Appointed board member as watchdog
•Information rights (periodic statements of financial and other information.
•Get-in and get-out
60. Viability
Fund must have committed financiers who are “going for
the gold”
Flexibility:
• Founders should seek out flexible in adjusting to
unpredictable events and changes in Company
• Many VCs have rigid rules
Geographic Proximity