VCIC
Everything is negotiable.
If you are negotiating - have better reasons to support something than “its standard.”
Monthly updates are very nice.
51% share ownership - BS. You can get control through board control and the shareholder agreement.
Think about milestones that add value. Increased cashflow, revenue targets, etc. Website is not a meaningful milestone.
Performance = control.
If you can’t get it the way you want - don’t make the investment.
Account for the risks you identify in the DD in your term sheet.
Direct questions - have you been arrested? Have you changed your name? You need to KNOW the investment.
Negotiations - don’t give in immediately.
You CAN reshape the deal to a format that works for you.
What struck the judges was how few people wanted to change things around from the business plan.
Most people picked up on the risks - but most did not put the risks into items on the term sheet.
There’s always one thing that is the barrier to value. Focus on it.
9% option pool is too low - needs to be 15% or so.
If you are negotiating - have better reasons to support something than “its standard.”
Monthly updates are very nice.
51% share ownership - BS. You can get control through board control and the shareholder agreement.
Think about milestones that add value. Increased cashflow, revenue targets, etc. Website is not a meaningful milestone.
Performance = control.
If you can’t get it the way you want - don’t make the investment.
Account for the risks you identify in the DD in your term sheet.
Direct questions - have you been arrested? Have you changed your name? You need to KNOW the investment.
Negotiations - don’t give in immediately.
You CAN reshape the deal to a format that works for you.
What struck the judges was how few people wanted to change things around from the business plan.
Most people picked up on the risks - but most did not put the risks into items on the term sheet.
There’s always one thing that is the barrier to value. Focus on it.
9% option pool is too low - needs to be 15% or so.