BRAD FELD has been an early stage investor and entrepreneur for over thirty years. Prior to cofounding Foundry Group, he cofounded Mobius Venture Capital and Intensity Ventures. He is also a cofounder of Techstars.
 
JASON MENDELSON has over twenty years experience in the venture capital and technology industries in a multitude of investing, legal, and operational roles. Prior to cofounding Foundry Group, Jason was a Managing Director and General Counsel for Mobius Venture Capital. He is also a cofounder of SRS/Acquiom.

Foreword by Fred Wilson (3rd Edition) xi
 
Foreword by James Park (3rd Edition) xiii
 
Foreword by Dick Costolo (1st and 2nd Editions) xv
 
Preface xvii
 
Acknowledgments xxiii
 
Introduction: The Art of the Term Sheet 1
 
Chapter 1 The Players 3
 
The Entrepreneur 3
 
The Venture Capitalist 4
 
Financing Round Nomenclature 7
 
Types of Venture Capital Firms 9
 
The Angel Investor 10
 
The Syndicate 12
 
The Lawyer 13
 
The Accountant 14
 
The Banker 15
 
The Mentor 15
 
Chapter 2 Preparing for Fundraising 17
 
Choosing the Right Lawyer 17
 
Proactive versus Reactive 18
 
Intellectual Property 20
 
Chapter 3 How to Raise Money 23
 
"Do. Or Do Not. There is No Try." 23
 
Determine How Much You are Raising 24
 
Fundraising Materials 26
 
Due Diligence Materials 32
 
Finding the Right VC 33
 
Finding a Lead VC 34
 
How VCs Decide to Invest 35
 
Using Multiple VCs to Create Competition 38
 
Closing the Deal 39
 
Chapter 4 Overview of the Term Sheet 41
 
The Key Concepts: Economics and Control 42
 
Chapter 5 Economic Terms of the Term Sheet 45
 
Valuation and Price 45
 
Employee Option Pool 47
 
Warrants 50
 
How Valuation is Determined 52
 
Liquidation Preference 54
 
Pay-to-Play 63
 
Vesting 66
 
Exercise Period 70
 
Antidilution 71
 
Chapter 6 Control Terms of the Term Sheet 77
 
Board of Directors 77
 
Protective Provisions 81
 
Drag-Along Agreement 85
 
Conversion 88
 
Chapter 7 Other Terms of the Term Sheet 91
 
Dividends 91
 
Redemption Rights 93
 
Conditions Precedent to Financing 95
 
Information Rights 97
 
Registration Rights 98
 
Right of First Refusal 100
 
Voting Rights 102
 
Restriction on Sales 102
 
Proprietary Information and Inventions Agreement 103
 
Co-Sale Agreement 104
 
Founders' Activities 105
 
Initial Public Offering Shares Purchase 106
 
No-Shop Agreement 107
 
Indemnification 110
 
Assignment 110
 
Chapter 8 Convertible Debt 113
 
Arguments for and Against Convertible Debt 114
 
The Discount 116
 
Valuation Caps 117
 
Interest Rate 119
 
Conversion Mechanics 119
 
Conversion in a Sale of the Company 121
 
Warrants 122
 
Other Terms 125
 
Early Stage versus Late Stage Dynamics 125
 
Can Convertible Debt Be Dangerous? 126
 
An Alternative to Convertible Debt 127
 
Chapter 9 The Capitalization Table 129
 
Price per Share with Convertible Notes 131
 
Pre-Money Method 132
 
Percentage-Ownership Method 133
 
Dollars-Invested Method 133
 
Chapter 10 Crowdfunding 137
 
Product Crowdfunding 137
 
Equity Crowdfunding 139
 
How Equity Crowdfunding Differs 141
 
Token Crowdfunding 143
 
Chapter 11 Venture Debt 145
 
The Role of Debt versus Equity 145
 
The Players 147
 
How Lenders Think about Loan Types 148
 
Economic Terms 151
 
Amortization Terms 154
 
Control Terms 157
 
Negotiation Tactics 161
 
Restructuring the Deal 163
 
Chapter 12 How Venture Capital Funds Work 167
 
Overview of a Typical Structure 168
 
How Firms Raise Money 169
 
How Venture Capit

Lieferung vom Verlag mit leichten Qualitätsmängeln möglich

Help take your startup to the next step with the new and revised edition of the popular book on the VC deal process--from the co-founders of the Foundry Group
 
How do venture capital deals come together? This is one of the most frequent questions asked by each generation of new entrepreneurs. Surprisingly, there is little reliable information on the subject. No one understands this better than Brad Feld and Jason Mendelson. The founders and driving force behind the Foundry Group--a venture capital firm focused on investing in early-stage information technology companies--Brad and Jason have been involved in hundreds of venture capital financings. Their investments range from small startups to large Series A venture financing rounds. The new edition of Venture Deals continues to show fledgling entrepreneurs the inner-workings of the VC process, from the venture capital term sheet and effective negotiating strategies to the initial seed and the later stages of development.
 
Fully updated to reflect the intricacies of startups and entrepreneurship in today's dynamic economic environment, this new edition includes revisions and updates to coverage on negotiating, gender issues, ICO's, and economic terms. New chapters examine legal and procedural considerations relevant to fundraising, bank debt, equity and convertible debt, how to hire an investment banker to sell a company, and more.
* Provides valuable, real-world insights into venture capital structure and strategy
* Explains and clarifies the VC term sheet and other misunderstood aspects of capital funding
* Helps to build collaborative and supportive relationships between entrepreneurs and investors
* Draws from the author's years of practical experience in the VC arena
* Includes extensively revised and updated content throughout to increase readability and currency
 
Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist is a must-have resource for Any aspiring entrepreneur, venture capitalist, or lawyer involved in VC deals as well as students and instructors in related areas of study.