Category

Financings

Have You Used Our Term Sheet Series?

Brad and I are thinking about updating our Venture Capital Term Sheet Series. We’ve heard over the years from folks that they’ve used our series to teach classes.  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, we haven’t kept track…

Microsoft Does The Right Thing.

Yesterday I posted about Young Startup Ventures trying to rip off Boston-based entrepreneurs. Today, I’m pleased to report that after hearing of the pay-to-pitch requirements of Young Startup Ventures, Microsoft has done the right thing and no longer is allowing the group to use their facilities.  We should all congratulate them on doing the right…

Watch Out Boston, a Rip Off is Coming to Town (Young Startup Ventures)

Apparently, our work to weed out unscrupulous venture events is not done.  Today, I learned that Boston entrepreneurs will be the next victims to be fleeced out of their cash in order to have the opportunity to pitch to VCs.  To quote my partner Seth: THERE IS NO CIRCUMSTANCE IN WHICH ENTREPRENEURS SHOULD PAY TO…

Three things NOT to do when you are pitching me

Today has been a busy day meeting companies.  2-3 a day is about average for me, but today I’ll hit double digits. Several of the teams today exhibited red flag issues that most likely shot their chance for Foundry Group funding them.  And they were simple things that they should have gotten correct.  1. Not…

Why Don’t Venture Capitalists Tell You Why They Won’t Invest?

Today, I was asked through AskTheVC the following question: ‘”Why don’t VCs tell you the reason why they don’t invest? Any feedback would be useful. It’s just plain rude.” I figured that this is really a personal question, so I thought that I’d post on my personal blog, as I certainly can’t speak (or even…

When A Down Round Isn’t So Bad (Unless you are a VC)

All of us in the startup eco-system hear about the “evil” down round or “cramdown” financings that happen.  These days, the noise level around this financing dynamic is increasing, not decreasing. While most entrepreneurs worry about down rounds, I’d argue that many times the entrepreneurs and employees are the ones that come out ahead.  In…

Time to Reboot Venture Capital Deal Structures

Edwin Miller of Sullivan and  Worcester recently published an article called Time to Reboot the Basic VC Deal Structure, in which he argues that we should radically change the way VC deals get done.  In his words: "New York Times columnist Tom Friedman recently suggested that “It’s Time to Reboot America,” meaning that the financial…

Model Seed Documents – Direct From Techstars

Ever since Brad and I created our term sheet series, we’ve been regularly asked "okay, so what do some model documents look like?" Well, today, our friends at Techstars posted their model forms of seed financing documents. Techstars worked with Brad, myself and very closely with Cooley Godward Kronish, LLP (and specifically Mike Platt) to…