Archives / February, 2007

Tim Wolters on The Liquidation Preference

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.

What’s A Reasonable Starting Point For An Option Pool?

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…

Example Term Sheet

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…

How Do Venture Capitalists Spend Their Day?

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…

Should You Hire Someone To Write Your Business Plan?

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…

Dealing With All Those Early Shareholders

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…

Lies, Damn Lies, and Statistics

Ah – two great VC posts in one day – what more could you ask for?  Scott Maxwell of OpenView Venture Partners has an awesome post up titled 10 best ways to lie with metrics.  I’m glad to see Scott blogging again – his MIT background shines through with his critical thinking on any topic…

VC (or Entrepreneur) Madlibs

It’s late on Friday (queue Amy from background: “Brad, it’s 6:10 on a Friday – get off of your computer and come play.”) Before I figure out where we are going for dinner, I thought I’d leave you with a Madlib to fill in.  Remember Madlibs?  Yeah – sure you do.  I know I’m supposed to…

More Thoughts on Don’t Be Casual

Today’s Great VC Post doesn’t come from a VC (I couldn’t find any great ones this morning when I went through my feeds in FeedDemon.)  Instead, it’s a post by my long time friend Will Herman titled Prepare and Be Prepared that is a follow up to my post titled Don’t Be Casual.  I realize this…