Question: One thing that I think would be incredibly helpful would be to have a spreadsheet showing how a cap sheet evolves under a set of financing rounds with the important variables parameterized so we can play with them. Having spent the past 15 years trying to come up with the definitive spreadsheet model for […]
Monday is a tough day to be a VC blogger because you are competing with Fred Wilson’s MBA Mondays series. Fred once again delivers with his post Financing Options: Capital Equipment Loans and Leases. In this post, he talks about ways to finance your capital equipment without using cash from your equity financing, which is usually […]
Every book we’ve ever read has mistakes in it. Ours is no exception. We tried hard to get everything right, and say it clearly, but we know some errors snuck in. We’ve created an Errata page on this site. Whenever we find an error, or someone reports a mistake, we’ll put it up on the […]
While most people ask themselves “What should I do?” when seeking VC financing, there are also some things that a person should not do. Doing any of the following at best makes you look like a rookie (which is okay, we all were rookies once) and at worst kills any chance that you have of […]
Regardless of how much you know about term sheets, you still need to be able to negotiate a good deal. We’ve found that most people, including many lawyers, are weak negotiators. Fortunately for our portfolio company executives, they can read about everything we know online and in this book, so hopefully in addition to being […]
Before we talk about the dynamics of the negotiation of the deal, it’s useful to understand the motivation of the person you’ll be negotiating against, namely the venture capitalist (VC). We’ve been asked many times to divulge the deep, dark secrets of what makes VCs tick. One night over dinner we talked through much of […]
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