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 October 19, 2009
Today, The Sydney Morning Herald reported that Jim’s Group is facing a revolt by Franchisees.
For those who reside in Sydney, you would be all too familiar with Jim’s mowing. “Jim Penman, the founder of Jim’s Group – which spans 28 different franchises including mowing, plumbing and electrical with 2700 franchisees in Australia alone – faces being forced out of the company, and a class action, after a referendum held at the weekend”. (Source: Chalpat Sonti, Sydney Morning Herald, 20 October 2009)
by Glenn Matthews on September 30, 2009
I don’t have a problem with making mistakes. In an entrepreneur’s life mistakes are life lessons. In only recent years have colleges and universities offered entrepreneurial classes. Traditionally we had to learn through mentors, readings and ultimately our mistakes. I’ve made my fair share of mistakes and I offer them to you as a lesson to consider.
1. Having poor cash management:
Too many businesses operate on a shoestring; in fact the biggest contributor to business failures is lack of capital. I understand that all start-ups operate cash-poor, but there’s a difference between being cash smart and down right stupid. Don’t let finances rule the path of your idea. Time is always on your side so be patient with progress and plan, manage and always watch your cash flow.
