Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist
When fundraising, it’s important to raise just the right amount. As Katrina Lake has pointed out, raise too much and the freedom to allocate resources to every project and idea could distract the management team from understanding the real issues that are blocking growth in the core business. Raise too little and the constraints could put undue pre
... See moreAli Tamaseb • Super Founders: What Data Reveals About Billion-Dollar Startups
To attract seed stage investors, consider a convertible debt deal with two additional features: a reasonable time horizon on an equity financing and a forced conversion if that horizon isn’t met, as well as a floor, not a ceiling, on the conversion valuation.
Brad Feld • Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist
(That said, until you are comfortable with the ins and outs of the angel-funding process, it is imperative that you engage an attorney with experience in early-stage financing. This is not a situation where you want to rely on your family's personal lawyer, or on a local real estate attorney you happen to know. If you hire a skilled professional, t
... See moreDavid S. Rose • Angel Investing: The Gust Guide to Making Money and Having Fun Investing in Startups
Venture capital funds provide capital and guidance. But this comes with billion-dollar expectations.