Q: Can you explain what supra pro-rata is? It seems to be showing up in some VC term sheets now. What’s the impact on the entrepreneur? How hard should one try to negotiate it out? If a VC insists on this term, should the entrepreneur walk away? A: (Jason) First of all, for those of […]
Q: I am looking to raise some money around an early stage business opportunity and have been instructed to raise a convertible note before doing a Series A round. The VCs providing the convertible note would give a handshake deal to continue onto the A round should milestones be met… Is this smart? Or should […]
Q: We are in the midst of raising capital and was trying to “Think outside the box” and come up with innovative ideas. We thought of our website. We decided to put our fundraising efforts on our website. For instance: “We are raising $1.5 Million – if you’re interested “click here.” “Click here” leads you to […]
How much should you pay board members and advisors to your company? If your board members are VC investors, the answer is simple: nothing. They are on your board to help maximize the value of your company and their investment. If you have a VC that wants to invest and wants to be paid (in […]
Last week I attended a dinner put on by Ed Zimmerman and the fine folks at Lowenstein Sandler. Ed has been an active participant in the NVCA model documents initiative and I’ve gotten to know him through the years as someone who is passionate about what he does, which among other things, is law and […]
Q: You’ve spoken at length about vesting for founders and key employees in your term sheet series. I was interested on your take concerning pre-existing employment contracts in which vesting terms and stock ownership has already been agreed upon by the Corporation and Employees including founders? A: (Jason). What VCs really want is to make […]
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