Exits

Do VC’s Guess The Exit At The Beginning?

Question: You often hear to leave out the possible exit scenario when you pitch. Brad states that its because its usually wrong. I suspect most VC’s discuss likely exits with their partners before making an investment, what percent of the time do you guys generally "guess" the exit on the front side of the investment?…

Do Venture Capitalists Fund A Company With An Intent To Steal It?

Q: My client is looking for a 5 million dollar investment from a VC firm. What can he do to protect himself if he is worried that the VCs will acquire the rights to his product and then try to fire him and keep those rights? Does this happen often? In addition, he anticipates that…

Will A Talented Entrepreneur Make $1m From His Startup?

Q: In your experience, what are the chances a talented entrepreneur will make $1M from his startup? (And no, I don’t mean making $150K/year for 6 years and 8 months. πŸ™‚ A: (Brad): I have no clue as it depends on many different inputs as to be an impossible question to answer simply (e.g. you…

Can You Conduct A Confidential Venture Capital Job Search?

Q:  I am part of the founding management team of a start-up. We are backed by a few well known VC’s. While I think the prospects of the company are good, I am entertaining the thought of moving into venture capital. I have a number of contacts in the venture capital community from grad school…

How Can You Replace the CEO of a Struggling Angel-Funded Company?

Question: I own shares in a company in a 5 year old private company. The company to date has raised its capital through a series of convertible notes and warrants. The company has failed to gain traction over the past few years and the CEO needs to be replaced. Do any of the debt and…

How Is Intellectual Property Split Between Separating Founders?

Question: What happens if two founders hit a crossroads and they are not able to agree on the strategic direction of the company prior to institutional funding and decide to separate? Is there an easy way to split the company at this point given that there are no hard assets? What rights does each party…

What To Do With An Alcoholic Business Partner

Question:  We have recently discovered that our business partner is an alcoholic.  He is integral to our business and we need to find him help.  He’s been to a couple of AA meetings, but doesn’t like the “atmosphere.”  Any recommendations?  I don’t expect you to provide recommendations for treatment facilities. However I am interested in…