The 411 On Startups ™

Follow @theStartup411

  • ANGELS 411
    • Angel Investing Statistics
    • Angel Primers
    • Common Deal Mistakes
    • Expected Returns
    • Founder Salaries
    • How Groups Work
    • Net Worth Allocation
    • Tax Incentives
  • ENTREPRENEURS 411
    • Common Mistakes
    • Dilution Through Exit
    • Employee Option Grants
    • Executive Summaries
    • Exit Strategy
    • Finding Angels
    • Founders Syndrome
    • Fundraising
    • General Primers
    • Gust / Angelsoft
    • Hiring The Team
    • Investor Presentations
    • Milestones/$$ to Raise
    • Money Finders
    • Pitching
    • Stealthy or Not
    • Technology Transfer
    • Type of Investors
    • Types of Entrepreneur
  • FUNDING SOURCES
    • Angel Groups
    • Angels
    • Bank Loans
    • Family and Friends
    • Funding Sources Overview
    • Grants
    • Revenue Based Financing
    • SBA Loans
    • Strategic Investors
    • Super Angels
    • Venture Capital
    • Venture Leasing
    • Web/Micro Loans & Crowdfunding
  • LEGAL/CORPORATE STUFF
    • Advisory Board
    • Board Of Directors
    • Founder Agreements
    • Get the Right Attorney
    • Legal Stuff Primers
    • License Agreements
    • LLC or C or S Corp?
    • Non-Disclosure Agreements
    • Patents and IP
    • Restricted Stock
    • Selling Stock — SEC Rules
    • Stock Options
    • Stock Terminology
  • NON-PROFIT CATALYSTS
    • Creating A Startup Culture
    • Economic Development
    • Incubators / Accelerators
    • Organizations
    • Venture Forums
  • OTHER
    • GOOGLE GENERIC SEARCHES
    • LIST OF LISTS
    • TOPICAL
  • PLANNING
    • Business Models
    • Business Planning Software
    • Business Plans
    • Financial Plans
    • Financing Plans
    • Marketing Plans
  • STARTUP MEDIA
    • Blogs
    • Books
    • Podcasts
    • Presentations
    • Videos
  • TAKING THE MONEY
    • Capitalization Tables
    • Convertible Notes
    • Due Diligence
    • Funding Documents
    • Preferred Stock
    • Private Placement Memorandum PPM
    • Term Sheets
    • Valuation
  • Uncategorized
  1.  
  2. TAKING THE MONEY
  3. Term Sheets

Ideal first round funding terms

May

28

2012

My last 2 posts were about things to avoid, so I thought it might be helpful to follow up with something more positive. Having been part of or observed about 50 early stage deals, I have come to believe there is a clearly dominant set of deal terms. Here they are: – Investors get either ...
read more →

Angel Primers · Founder Salaries · Term Sheets · Valuation

first round funding

Orrick – Start-Up Tool Kit – Term Sheet Creator – Start-Up Forms Library

Sep

26

2011

There are many items useful to entrepreneurs on the site including: Example cap (capitalization) table spreadsheet Term Sheet Creator Non-disclosure Agreements Employment Agreements Stock Option plans Confidential Information and Invention Assignment Agreement for Employees & Consultants and much more …..
read more →

Capitalization Tables · Hiring The Team · Non-Disclosure Agreements · Stock Options · Term Sheets

forms · spreadsheet

Why Super Pro-rata Rights are Not a Good Deal for Entrepreneurs

Sep

26

2011

Yesterday I saw a Tweet from Chris Sacca fly by that prompted me to want to write a blog post helping entrepreneurs understand why they should push back against VCs asking for “super pro-rata” rights. I’ll explain what they are and why you should avoid them if you can. A primer on “pro-rata” rights Institutional investors will ...
read more →

Preferred Stock · Term Sheets

pro-rata rights

Term Sheet Generator – WSGR

Apr

24

2009

This tool will generate a venture financing term sheet based on your responses to an online questionnaire. It also has an informational component, with basic tutorials and annotations on financing terms. This term sheet generator is a modified version of a tool that we use internally, which comprises one part of a suite of document ...
read more →

Term Sheets

legal · term sheets

What is upgradeable Series A preferred stock? : Startup Company Lawyer

Sep

27

2008

Occasionally, I see a new provision in a term sheet, which keeps things interesting for me. I’ve decided to call this type of Series A preferred stock ‘upgradeable’ (after recently realizing that there are economy class plane tickets that aren’t upgradeable despite having system-wide upgrade certificates). The term sheet provides:
read more →

Term Sheets

preferred stock

Series AA Equity Financing Documents — Y Combinator

Sep

4

2008

Y Combinator and Wilson Sonsini Goodrich & Rosati are happy to announce the Series AA Equity Financing Documents. Their goal is to make angel funding rounds for startups easier for both sides. These documents were originally created for YC-funded startups to use when raising angel rounds. They seem to have worked well in trial runs ...
read more →

Term Sheets

deal documents · fundraising · legal · series a

Full Ratchet Anti-Dilution Protection : Texas Startup Blog

Aug

26

2008

The word “dilution” has several meanings in deal making; it is critical to understand the context. An investor in any given round of financing is concerned that the next round could be at a lower price per share than what he is paying this round. Therefore, the investor will insist upon anti-dilution protection. If pressed ...
read more →

Term Sheets

anti-dilution · rachet

Down round financings – Harsh Founder Consequences

Aug

17

2008

A good explanation of how down rounds effect ownership for different kinds of antidilution provisions in term sheets: full ratchet, broad-based weighted-average, and narrow-based weighted-average.
read more →

Term Sheets

down round · term sheets

Popular Posts

  • Milestones – Biotech Startup Milestones – Venture Capital Deliverables
  • Spreadsheet for creating a startup financial plan
  • BizPlanIt Virtual Business Plan
  • Writing an Effective Business Plan — Deloitte & Touche LLP.
  • Discount or cap? A spreadsheet that shows what happens when a note converts.

© 2023 The 411 On Startups ™ — All Rights Reserved.