Question: I am currently shopping VCs, or should I say I am letting them shop me. We have a service that will launch Q1 of 2007 and have had numerous discussions with large and small websites that want to use the service. Is it beneficial to get Letters of Intent from these people to bring […]
Tim Wolters – the CTO of Collective Intellect – is in the middle of a financing and blogging about some of the terms. Today’s is the liquidation preference. It’s interesting to compare it to what Jason and I wrote in 2005 about liquidation preferences in our Term Sheet series.
Q: In modeling out an early-stage deal, do you think it would be reasonable to start with a 20% option pool (Round A) and then plan to refresh that on subsequent rounds (ie, make an assumption about having key hires in place by round C or B)? Or should we just allow that option pool […]
Q: I’ve been re-reading back through your term sheet series as was wondering if you had a sample one that you could send my way (yes, I have found several others online already but they don’t seem to contain much of the same jargon that you give in your examples). Also, I’m trying to find […]
I co-own a startup company recently founded between myself and a partner. Neither of us have the core skills to write a clear and coherent business plan. However, we have very forward vision, goals, built-up clients and community, a strong advisory panel and all around great prospects. What would you advise we do, if not […]
Rick Segal has today’s VC Post of the Day with his excellent post A Fatal Paper Cut. Rick tells the story of the death of a promising young startup as a result of a messy early capital structure that wasn’t managed correctly from the beginning. In due diligence, the VC chickened out and the company […]
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