(Brad) In response to the post Compensation In A Very Early State Company I got the following question: Q: If comp is at say 50% with 2x equity vesting over a standard term, then in 6 months a series A is completed and there’s more comfortable level of cash in the bank, salary can be renegotiated […]
Q: How do I do multiple closings on a single round work? In our case, we have an investor wishing to give us headstart, certainly I imagine not an uncommon case in friend and family scenarios, though here we’d have multiple rounds of angels, without kicking up the gears to flush out a full seed […]
Q: Can you please explain what sort of adjustments you should expect to the price that a VC promises in a term sheet between the signing of the term sheet and signing of a final stock purchase agreement (SPA)? A: (Jason) To answer your question, we first need to determine what the definition of "price" […]
Q: Can you please touch on issues associated with first round financings from corporate or strategic investors. Particularly when the strategic is a competitor. What are some of the pitfalls and opportunities associated with this type of an investor in an early stage company? A: (Jason) There are both potential positives and negatives taking money […]
Q: Everyone tells me the way to approach a venture capitalist I don’t know is through a friendly introduction from someone who already knows that VC. But what happens if I don’t have the connections to get that introduction? Am I screwed? A: (Chris) Every entrepreneur who has raised venture capital has heard it a […]
Today’s great post is from Paul Graham and is titled A Fundraising Survival Guide. Paul runs Y Combinator and has been involved in numerous early stage financings since starting Y Combinator several years ago. Worth a long, slow, and detailed read for any entrepreneur raising money for their startup.
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