Tim Wolters – the CTO of Collective Intellect – is in the middle of a financing and blogging about some of the terms. Today’s is the liquidation preference. It’s interesting to compare it to what Jason and I wrote in 2005 about liquidation preferences in our Term Sheet series.
Archives for February 2007
Month: February 2007
Q: In modeling out an early-stage deal, do you think it would be reasonable to start with a 20% option pool (Round A) and then plan to refresh that on subsequent rounds (ie, make an assumption about having key hires in place by round C or B)? Or should we just allow that option pool […]
Q: I’ve been re-reading back through your term sheet series as was wondering if you had a sample one that you could send my way (yes, I have found several others online already but they don’t seem to contain much of the same jargon that you give in your examples). Also, I’m trying to find […]
Question: I’m curious. I understand that VCs have primarily four functions they perform: raising funds, screening and investing in new businesses, managing current portfolio companies and some level of investor relations and internal operations. How do you divide your work day? What percentage of time do you think you dedicate to each area? Maybe I’m […]
I co-own a startup company recently founded between myself and a partner. Neither of us have the core skills to write a clear and coherent business plan. However, we have very forward vision, goals, built-up clients and community, a strong advisory panel and all around great prospects. What would you advise we do, if not […]
Rick Segal has today’s VC Post of the Day with his excellent post A Fatal Paper Cut. Rick tells the story of the death of a promising young startup as a result of a messy early capital structure that wasn’t managed correctly from the beginning. In due diligence, the VC chickened out and the company […]