Archives / June, 2008

Where Are My IPOs?

Today’s great post of the day is from Fred Wilson titled The IPO Debate.  There were no VC-backed IPOs in Q208 – the first time this has happened since 1978.  The National Venture Capital Association (NVCA) is doing a big media push to get the word out about this and what it thinks is the…

How Did We Get Our Idea For Our Startup?

Q:  We just started looking for venture funding and I have a question. Why do VC’s ask us how our idea came about? Are they looking for an emotional and inspiring story or are they worried that we may have taken our idea from someone else or, what I believe is the case, do they…

I’ve Got Angels Who Want To Invest But Not Lead – Now What?

Q: I have several angels that say the want to invest but non of them wants to lead. In your experience: 1) Is this a "call option" strategy rather than a serious investment intent? 2) any thoughts on how to turn "co investors" into lead? or should I try to get a lead of this…

What’s An Appropriate Equity Package For A Founding Board Member?

Q: I am trying to determine the appropriate equity position for my startup’s board members.  They are arguing that they are "founding" board members. They have put in a few hours a month of their time for around a year, have been very helpful with introductions, and have sat in on VC meetings.  We are…

More Thoughts on Structuring an Angel Investment

I’m not a fan of convertible notes as the form of an angel investment.  When I’m making an angel investment, I much prefer to price the round and do a "light Series A" (simple terms, but still a preferred instrument.)  Basil Peters has a series of posts up on Angel blog that talks about the…

Founders Termination Clause In Term Sheets?

Q: Thank you very much for your term sheet series.  Not being that familiar with "specific" term sheets, I have heard something about VC terms that effectively allow the VC to fire the founder(s) and in the process relieve them of their shares since they had then left the company before liquidity. I have read…