VDR Ch. 6, Part 1: Other Terms of the Term Sheet
In this episode, we discuss the difference between compounding and non-compounding dividends, why VCs ask for redemption rights, when conditions precedent matter, what’s included in information rights, and suggested thresholds for registration rights and ROFO.
VDR Ch. 5: Control Terms of the Term Sheet
In this episode, we discuss which activities a company’s board of directors must approve, how long a company should keep control of its board, the difference between a board member and board observer, and negotiating a threshold for protective provisions.
VDR Ch. 4, Part 2: Economic Terms of the Term Sheet
In this episode, we discuss why venture-backed startups must vest their equity, why you shouldn’t give employees Restricted Stock Purchase Agreements, how to get VCs to agree to a smaller option pool, and the difference between full ratchet anti-dilution and weighted-average anti-dilution.
VDR Ch. 4, Part 1: Economic Terms of the Term Sheet
In this episode, we discuss why the difference between pre-money valuation and post-money valuation matters when negotiating with a VC, why price per share is critical in later financing docs, what is included in a fully-diluted basis, why accepting a lower valuation can be the best option, the difference between participating preferred stock and non-participating preferred stock, and why play-to-pay scenarios are no longer common.
VDR Ch. 3: Overview of the Term Sheets
In this episode, we discuss who is responsible for providing the term sheet, which parts of a term sheet are binding, the different types of term sheets, and what should be included in a term sheet.
VDR Ch. 2: How to Raise Money
In this episode, we discuss how to determine how much money to raise, how to prepare a pitch deck, whether or not you need a PPM, four key roles of a lead investor, and first practical steps after deciding to raise money.
Venture Deals Review Ch. 1: The Players
In this episode, we discuss the non-monetary value your VC should provide, issues with Friends and Family financing, how the angel investor ecosystem has evolved, and how paying advisors success fees can violate SEC laws. Note: We recommend listening VDR Ch.16 first, before VDR Ch.1
Term Sheets 101: Convertible Debt v. Equity (Part 1)
If you’re a startup looking to raise capital, here is some of the basic language you need to know.
Term Sheets 101: Convertible Debt v. Equity (Part 2)
If you’re a startup looking to raise capital, here is some of the basic language you need to know.
Interview: Daniel De Valdenebro Of LiftFund
Kevin interviews Daniel De Valdenebro of LiftFund about alternative lending sources for small businesses.