Venture Deals: Chapter 1: The Players. On day two of our romp through the table of contents of Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist, we cover the various players involved.
While it might seem like there are only two players in the financing dance—the entrepreneur and the venture capitalist—there are often others, including angel investors, lawyers, and mentors. Any entrepreneur who has created a company that has gone through multiple financings knows that the number of people involved can quickly spiral out of control, especially if you aren’t sure who actually is making the decisions at each step along the way. The experience, motivation, and relative power of each participant in a financing can be complex, and the implications are often mysterious. Let’s begin our journey to understanding venture capital financings by making sure we understand each player and the dynamics surrounding the participants. Venture Deals Is Officially Released. What Are Typical Employment Contract Terms and Severance Benefits for a Startup?
Q: I have read the your article on typical compensation for senior management of venture backed companies.
There was no mention of severance and length of contract terms. Can you opine? A: (Jason) Most everyone in the startup world is an at-will employee and does not have an employment contract. For those of you unfamiliar, “at-will” means “can be fired at any time for any reason.” Venture Deals: Chapter 2: How To Raise Money. In Chapter 2 of Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist, we cover the basics of the VC fundraising drill.
Your goal when you are raising a round of financing should be to get several term sheets. While we have plenty of suggestions, there is no single way to do this, as financings come together in lots of different ways. VCs are not a homogeneous group; what might impress one VC might turn off another. Although we know what works for us and for our firm, each firm is different; so make sure you know who you are dealing with, what their approach is, and what kind of material they need during the fund-raising process. Following are some basic but by no means complete rules of the road, along with some things that you shouldn’t do.
Hopefully we are whetting your appetite for the tasty morsels to come. Venture Deals: Chapter 3: Overview of the Term Sheet. Chapter 3 of Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist is a transitional one that sets up the next few chapters on Term Sheets.
At the end of 2005, we participated in a financing that was much more difficult than it needed to be. All of the participants were to blame, and ignorance of what really mattered in the negotiation kept things going much longer than was necessary. We talked about what to do and, at the risk of giving away super-top-secret VC magic tricks, decided to write a blog series on Brad’s blog (Feld Thoughts) that deconstructed a venture capital term sheet and explained each section.
That blog series was the inspiration for this book. The next few chapters cover the most frequently discussed terms in a VC term sheet. The specific language that we refer to is from actual term sheets. The various terms in a term sheet fall into three categories: (1) economics, (2) control, and (3) everything else. Two Kickstarter Projects You Should Know About. I backed a couple Kickstarter projects this week and I thought you ought to know about them.
The first is from Josh Harris. Yes, the Josh Harris who was one of NYC's most notable entrepreneurs in the mid and late 90s. The Josh Harris who threw killer parties, did the Quiet and We Live In Public projetcs, and the Josh Harris who was the first person I ever met who did podcasting and videocasting on the internet. Josh wants to build an Internet Television Network called The Wired City. Here's the video introducing the concept. The Wired City is an extension of everything Josh has been working on over the past fifteen years and is exactly the kind of super creative project that Kickstarter is perfect for. The second one is from Brian August. Brian's project has 17 days left and he's closing in on his target. Financer sa boîte. FinancerSaBoite est une plateforme de mise en relation entre des investisseurs et des entrepreneurs franciliens cherchant des fonds propres pour financer la création et le développement de leur activité FinancerSaBoite est un projet initié par la Région Ile-de-France et mis en œuvre par le Centre Francilien de l’Innovation.
Vous êtes un entrepreneur, votre société est basée en Île-de-France et vous cherchez à lever des fonds : FinancerSaBoite vous propose une plateforme reposant sur le principe de la qualification par des acteurs de l’accompagnement des TPE et des PME en Ile-de-France : Www.appuipme.fr. CDC Entreprises. Jaïna Capital. Kima Ventures. VENTECH.
Investisseur en capital-risque, Ventech s'associe depuis 1998 avec les meilleurs entrepreneurs dans les secteurs des Technologies de l'Information. Avec plus de 360 M€ sous gestion, Ventech sélectionne et finance les projets européens les plus ambitieux et les accompagne dans leur développement international. Grâce à son implantation en Chine, ISAI, le fonds des entrepreneurs internet. Fédération des réseaux de Business Angels français, investisseur. Venture Capital / Funding.