Image: Pink Floyd Update: Here’s a simpler approach I like. Scheduling meetings with investors — this topic is so banal you may wonder why someone needs to write about it all. But since we started AngelList, we’ve been making daily introductions between investment-grade startups and top-tier investors like Satish Dharmaraj (Posterous), Jeff Clavier (Mint), and [...]
Entries Tagged as 'Auctions'
Tips from a ex-VC who helps entrepreneurs raise money
April 16th, 2008 · 1 Comment · Auctions, Resources
In 4 Things to Do After You Get Your First Term Sheet, Bill Burnham, a former partner at Mobius and Softbank Capital, writes, “I’ve recently been involved in helping a couple companies with their first major round of VC financing. It’s actually been pretty interesting for me because I have historically been on the other [...]
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Should I shop around?
December 6th, 2007 · 2 Comments · Auctions, Negotiation
“We took the approach of wanting to get to know the different partners and the different possibilities and to see where there was the best fit. Partnerships take a lot of work—you want to go out on a few dates before you get married. Yes, we dated a few people but didn’t get married… and [...]
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Complete business diligence before you sign a term sheet
November 25th, 2007 · 1 Comment · Auctions, Closing, Due Diligence, Term Sheet
“Once the term sheet is signed, the power shifts away from the startup to the purchaser. The typical term sheet will give the purchaser the discretion to step away from the deal if due diligence is unsatisfactory, or if the necessary internal approvals are not obtained.” — Suzanne Dingwall Williams, on M&A “… there is [...]
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What's the biggest mistake entrepreneurs make?
October 14th, 2007 · 1 Comment · Auctions, Board of Directors, Protective Provisions, Valuation, VC Industry
Q: What’s the biggest mistake entrepreneurs make when they’re raising money? Entrepreneurs focus on valuation when they should be focusing on controlling the company through board control and limited protective provisions. Valuation is temporary, control is forever. For example, the valuation of your company is irrelevant if the board terminates you and you lose your [...]
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How is raising money like buying a car?
September 13th, 2007 · 8 Comments · Auctions, Case Studies, Negotiation
How many similarities can you find between hacking fund-raising and hacking a car purchase? Watch this video: The best answer gets a coveted Venture Hacks mug. (Via Lifehacker.)
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Create a market for your shares
September 11th, 2007 · 10 Comments · Auctions, Psychology
“Things are worth what people pay for them.” – Head of M&A at a Fortune 500 Company Summary: You need strong alternatives to hack a term sheet. Create alternatives with focus: pitch and negotiate with all your prospective investors at once. Focus compounds scarcity and social proof, which closes deals. Focus also yields a quick [...]
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Potpourri: Introductions, Auctions, Tranches, and Co-Investors
August 8th, 2007 · 2 Comments · Angels, Auctions, Co-Investors, Introductions, Tranches
Summary: Angels make more introductions than VCs because angels need co-investors. You can’t clear the market in series–you can only clear it in parallel. Tranches are dumb–they have zero upside and catastrophic downside. Two investors aren’t always better than one. Finally, a ‘very special’ message to graduating Y Combinator founders: don’t do deals on D-Day [...]
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Office Hours: Technical Error Edition
June 8th, 2007 · 10 Comments · Angels, Auctions, Dilution, Office Hours
“You cannot clear the market in series.” – Office Hours “Investors move in herds that are steered by scarcity and social proof.” – Office Hours Summary: This article includes audio and notes from our first office hours. Topics include selling 51% of the company, dead equity, and setting good terms with angels. Yesterday, we held [...]
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