Posts Tagged 'term sheet'

What would be Reasonable Convertible Debt Deals for Angels

March 6 2014 No Commented

  I have written blogs on why I don’t invest in seed/startup stage deals using convertible debt instruments.  See: Angels: Convertible Debt Is Seldom the Right Security for Startup Investments and When is Convertible Debt the Right Instrument for Angel Investments? I was recently asked to quantify under what terms and conditions I might be […]

The Liquidation Preferences Debate

March 16 2011 No Commented

The terms and conditions under which angel investors fund startup entrepreneurs are defined by non-binding term sheets.  Liquidation preferences are a commonly negotiated term and come in several flavors: 1X non-participating liquidation preference – At exit, this preference give investors the option of getting their money back or participating pro rata in the exit with […]

Don’t Take Angel Investments from VCs – a dissenting opinion

April 19 2010 No Commented

Don’t Take Angel Investments from VCs – a dissenting opinion In his recent blog Don’t Take Angel Investments From VCs, Bill Burnham cautions entrepreneurs not to include venture capitalists among investors in an angel round.  His premise is that these same VCs may choose to offer the entrepreneurs an onerous term sheet (low valuation, etc.) […]

Angel Investor Relations: FAQ

April 16 2009 No Commented

What does this tool do? Once your company has received funding, this tool helps track your deal terms. You can also track the percentage of your company owned by each investor. Who will see the information I enter here? When an investor commits funds to your company, they will be brought to a similar page […]

ACA Session – Negotiate Now or Pay Later

April 16 2009 No Commented

Robert Robinson, founder of the Hawaii Angels, gave a session on negotiating at the recent ACA Summit. The following are some brief notes from his session: -Angels need to negotiate in the following areas- Expectations Process Term sheet Communications Portfolio Governance Follow on Financing Exit -Your negotiating strength is proportional to the value of your […]