Thoughts on startups by investors that
fund them & entrepreneurs that run them

Blog Archives

What’s actually required to start or close a funding round?

Technically, a “funding round” simply means a company accepting one or more investments from one or more investors on similar terms within a certain period of time. As such, this could cover many different things, such as:

Your parents loaning you money to cover your expenses while you code your product 25 individual angel investors funding a startup on a

Read more >

What are some key points to look for when reviewing an investment offer in your startup?

There are two separate and distinct sets of things that you need to look at when evaluating an offer.

The first, and most important, has to do with who the investment is from. It is impossible to over-emphasize the value of “smart money” and “good money” over “dumb money” and “evil money”. You should do at least as much diligence on your potential investor

Read more >

Control Depends More on Results Than Term Sheets

Posted by on July 25th, 2012

Fred Wilson of Union Ventures writes Entrepreneurs Have Control When Things Work, VCs Have Control When They Don’t on his AVC blog.

This is one of those ideas that seem completely obvious but only after I’ve heard them. Whether we’re founders or investors, we focus on terms and percentages as determining control. But in the real world, as Fred points

Read more >

Keep Term Sheets Simple for Quicker Cash to Spend

Remember a term sheet agreement is not a deal until the check clears. Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received.  Due diligence and paperwork take time, and can change everything.