by Glenn Matthews on March 7, 2010
On a number of occasions I have written about Protecting Yourself through Shareholders Agreements, Corporate Governance. I’d also like to add to that list “Venture Funding Documents”.
Collectively, Venture Funding Documents are legal documents which form a great starting point for seed stage financing for companies. When securing seed funding, you will generally start with what’s know as a Term Sheet, a bullet-point document outlining the material terms and conditions of the investment. “The term sheet lays out the proposed capitalization which includes number and type of shares for each shareholder and their relative ownership percentages, post-financing. It goes on to describe the liquidation preference, mechanics of conversion, how the board of directors will be determined, protective provisions, and other rights and agreements. The term sheet is not a definitive document – it just describes the basic agreement. This is the one we promote and use” (TechStars Model Seed Funding Documents).
by Glenn Matthews on February 28, 2010
2010 is still relatively young, yet I feel like I’ve done so much. At the beginning of the year I burst through the door of 2010 with all guns a blazing. I have given my every effort to raise capital. I’ve telephoned, emailed, presented to, and networked with a large number of angel investors and VC’s.
Here are my statistics so far in 2010:
- 41 Angel Groups and VC’s received my executive summary
- 7 Angel Groups and VC’s have turned me down
- 6 Angel Groups accepted me to present to their selection committee
by Glenn Matthews on February 25, 2010
I’ve had first hand experience of the difficulties in gaining a work visa in the US. It isn’t as simple as filling out a form, getting it stamped and looking for a job. No, it’s actually quite backwards. First you need to find a job, then you apply for a visa. For those unlucky people residing in countries which aren’t listed on the visa waver program, finding a job must be done remote. That was one thing I had in my favor. Being an Australian citizen, I could travel to the US for up to 90 days to secure a job before returning home to apply for a visa.
by Glenn Matthews on February 22, 2010
If you are a start-up looking for capital, or an entrepreneur that will one day run with that great idea, then here are 10 blogs that are an absolute must. If you haven’t already, set up an RSS reader and subscribe to these blogs.
- A VC – Fred Wilson is a Managing Partner of two venture capital firms, Flatiron Partners and Union Square Ventures and has been a VC for 19 years. A VC offers a great insight of how a VC thinks and acts. A must for anyone wanting to approach a VC to finance their start-up.
by Glenn Matthews on February 9, 2010
Recently I was invited to present to the selection committee of an Angel Group. The role of the selection committee is to assess companies and approve/dissapprove them to present in front of their members.
The presentation went well, enthousiasm and excitement was generated amongst my audience and I successfully passed the test – our company has been invited to present to the Angel Groups members. Good oh!!!! Then comes the paperwork for me to fill out: company name (no problem), company description (easy), credit card details……. huh, for what?
by Glenn Matthews on February 1, 2010
In the later stages of 2009 I connected with an angel group: Band of Angels. Their deal coordinator put me onto a presentation where Dr. Ian Sobieski (a founder and managing director of the Band of Angels Fund) sits as a panel members for the presentation Funding Your Dream.
The presentation offers great advice for any entrepreneur seeking seed capital. A range of topics are covered including the mistakes entrepreneurs commonly make when presenting, the average number of deals each VC company makes and a very important topic for start-ups seeking capital: how to connect with investors.
by Glenn Matthews on January 22, 2010
This morning I came across a very interesting and insightful article written by Joseph G. Hadzima, Jr. – Senior Lecturer, MIT Sloan School of Management. In fact, following on from this one article I found an excellent resource for entrepreneurs.
Within his article, entitled “Consideration for Founders: Issues in Structuring Relationships Among Members of the Founding Team”, Joseph talks about the problems that commonly arise between the founding members of a start-up and throughout the article he offers simple and practical advise to solve these problems. Here is his opening paragraph:
