Question: I own shares in a company in a 5 year old private company. The company to date has raised its capital through a series of convertible notes and warrants. The company has failed to gain traction over the past few years and the CEO needs to be replaced. Do any of the debt and […]
Q: Can you explain what supra pro-rata is? It seems to be showing up in some VC term sheets now. What’s the impact on the entrepreneur? How hard should one try to negotiate it out? If a VC insists on this term, should the entrepreneur walk away? A: (Jason) First of all, for those of […]
Q: I am looking to raise some money around an early stage business opportunity and have been instructed to raise a convertible note before doing a Series A round. The VCs providing the convertible note would give a handshake deal to continue onto the A round should milestones be met… Is this smart? Or should […]
Q: We are in the midst of raising capital and was trying to “Think outside the box” and come up with innovative ideas. We thought of our website. We decided to put our fundraising efforts on our website. For instance: “We are raising $1.5 Million – if you’re interested “click here.” “Click here” leads you to […]
Seth Goldstein has today’s great post up titled Schilling’s Laws for Perfect Start(up)s. If you’ve been hiding under a rock or are a cricket fan (vs. a baseball fan), you probably know that Schilling was one out away from a no-hitter and one-error away from a perfect game last Thursday. Seth was at the game, […]
How much should you pay board members and advisors to your company? If your board members are VC investors, the answer is simple: nothing. They are on your board to help maximize the value of your company and their investment. If you have a VC that wants to invest and wants to be paid (in […]
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