Category

Term Sheet

Finance Fridays

Last week I expressed my frustration with the current lack of financial literacy that I see all around me. In the spirit of Fred Wilson’s awesome blog series MBA Mondays, I’ve decided to write a series of posts about this and asked for suggestions. I got a bunch, but one that stood out was from…

Financial Literacy

I’m stunned by the lack of financial literacy of so many people in so many contexts. The commentary by politicians, economists, and the media on the European debt crisis and the US debt ceiling dynamics is appalling. The general media and blogosphere commentary on the financials of high growth companies, especially those who have either…

Failing Fast at Standardized Seed Deal Documents

While some people hate the phrase “failing fast”, I find it instructive when it’s used to signify that one isn’t going to pursue a particular path in the context of a larger set of activities.  A few weeks ago, I wrote a post about The Proliferation of Standardized Seed Financing Documents. It generated several hundred…

The Proliferation of Standardized Seed Financing Documents

As of today’s announcement that Ted Wang at Fenwick & West has collaborated with a group of bay area early stage VC’s and angel investors to create the Series Seed Documents we now have – at my count – four different standardized seed financing documents floating around the industry. TechStars Model Seed Funding Documents (by Cooley)…

Have You Used Our Term Sheet Series In A Course?

Over the years my partner Jason Mendelson and I have heard from numerous people that they’ve been exposed to our Venture Capital Term Sheet Series as reference material in a college course.  We are delighted by this and whenever we’ve been asked, we’ve always said (and will continue to always say) “with our blessing.”  However,…

Beware the Hockey Stick in Your Budget

We are deep in budget season as the last board meeting of the year typically includes the 2010 Budget – or at least the “2010 Draft Budget” or “2010 Budget – Draft”.  This is also known as “the joy of cramming a spreadsheet into a powerpoint presentation.” The budgets I see generally fit into one…

Stock Option Vesting Calculator

Simeon Simeonov, the Founder & CEO of FastIgnite, has put together a nice Stock Option Vesting Calculator.  It works just fine for stock vesting as well.  Sim is a dynamite entrepreneur who has also done a tour of duty as a VC so he knows the drill well.  In the email he sent me about…

The Challenge of The Ideal First Round Term Sheet

Suddenly the blogosphere is talking about the need for a standardized first round term sheet.  The latest iteration of this seems to have blossomed when TheFunded Founder Institute released a “Plain Preferred Term Sheet” (developed with WSGR).  According to the article in TechCrunch, the goal is to (a) protect founders and (b) reduce legal fees. …

Terms, Terms, and First Round Terms

Fred Wilson has a nice post up titled The Ideal First Round Term Sheet.  In it he describes the process of closing a financing using a standard set of Series A terms from Gunderson that he agreed to as part of the term sheet.  In this case, the VC (Fred’s firm – Union Square Ventures)…