Q: What type of structure have you seen where the VC agrees to fund over some time period 18-24 months and up to some level. A: (Brad): These are commonly called "Tranched Financings." The typical approach is that a VC commits to fund a specific amount in multiple "tranches" based on the company achieving some […]
Q: Say I have an angel (SEC accredited) who’s ready to invest at an amount well below $100k. How would this impact on a future round with VCs? Is there some standard or average pre-money and post-money that happens in angel deals? Also, the angel in question is a family member of a friend, so […]
One of the questions we get often is whether or not there is a central clearinghouse or hub (social network?) where VCs and entrepreneurs can connect. The idea is that VCs would find good deals and entrepreneurs would find funding. The answer is "no." Lately, on top of the questions, I’ve gotten several business plans […]
Q: Is it customary for an equity investor to have a veto right over future investments that are at parity or senior to that series? Do you see it often? Do you ever see it limited by the percentage ownership (e.g. if the series becomes a less than 10% shareholder, the veto right goes away)? […]
Q: My client is looking for a 5 million dollar investment from a VC firm. What can he do to protect himself if he is worried that the VCs will acquire the rights to his product and then try to fire him and keep those rights? Does this happen often? In addition, he anticipates that […]
Q: I’m the founder of a small internet start-up. Among my duties are editing and posting content daily, creating media partnerships, and bolstering our growth with creation of widgets, facebook apps, etc, but I’m also doing all of the fund-raising which feels like it should be my full-time job…if I could. I’m finding it hard […]
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