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
Three Things with Mark Clayton & Jason Fox
In this episode, Kevin and Aaron interview two clients who are former NFL players turned entrepreneurs – Mark Clayton, founder of LIVV Headphones, and Jason Fox, founder of EarBuds Music. They discuss life as an athlete v. life as an entrepreneur, unexpected setbacks, the key factor that leads to success, and how much you should spend on hiring web developers.
Silicon Valley Review S4, Ep10: Employee Handbooks & Terminating Employees
In this episode, we review S4, Ep10: “Server Error” and discuss legal and practical reasons for maintaining an employee handbook, distinguishing between policy and discrimination when terminating an employee, best practices for transitioning employees out, and more.
Silicon Valley Review S4, Ep9: A CEO’s Self-Destruction
In this episode, we review S4, Ep9: “Hooli-Con” and discuss Richard’s negative patterns of behavior as the CEO of Pied Piper as well as the viability of Keenan Feldspar’s company’s acquisition price.
Silicon Valley Review S4, Ep8: Key Man Insurance v. Key Holder Clauses
In this episode, we review S4, Ep8: “The Keenan Vortex” and discuss the difference between key man insurance and key holder clauses, using another company’s IP, and the likelihood of a venture deal blowing up.
Silicon Valley Review S4, Ep7: Did Bream Hall & Erlich Violate SEC Securities Regulation Laws?
In this episode, we review S4, Ep7: “The Patent Troll” and discuss the legality of Bream Hall paying Erlich a finder’s fee, the differences between finders and broker-dealers, the pros and cons of hiring an attorney to negotiate a demand letter, and the three acts that govern investment activity.