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Keep Term Sheets Simple for Quicker Cash to Spend

Remember a term sheet agreement is not a deal until the check clears. Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received.  Due diligence and paperwork take time, and can change everything. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, […]
Martin Zwilling
Martin Zwilling , Founder and CEO , Startup Professionals
17 Oct 2011

The Rhythm Method of Product Iteration

Of course, Steve Jobs left us a lot of incredible lessons.  Unfortunately, some of the really key ones, like “Be a genius”, can be tough to execute (I’ve been trying for years).  But one crucial one that you can implement might be called the “Rhythm Method”: imparting a well-known beat to your product and service upgrades. […]
Bob Rice
Bob Rice
14 Oct 2011

Knowledge Is Power: Convertible Note Financing Terms, Part III

Last week, we took the plunge and began dissecting an example term sheet for a convertible debt financing round piece by piece.  I’ll continue with more specific terms and wrap up next week with some thoughts about recent changes and trends for the future. Readers may find it helpful to download the sample term sheet from my […]
Antone Johnson
Antone Johnson , Founding Principal , Bottom Line Law Group
12 Oct 2011

2011 Valuation Survey of North American Angel Groups

During the summer of 2010, I developed a workshop, A New ACEF Valuation Workshop for Angels and Entrepreneurs.  To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies.  See the 2010 data reported here:  Current Pre-money Valuations of Pre-revenue Companies.Because of the […]
Bill Payne
Bill Payne , Angel Investor , Frontier Angel Fund
12 Oct 2011

Two Great Moments in Pitches

You decide, after reading, which of these was a really good moment and which was really bad. Moment one: the annoying interruption It struck me at the time as an annoying interruption, ill timed, and off point. It was just a few minutes into the pitch. She, the CEO of a fledgling pharmaceutical company with […]
Tim Berry
Tim Berry , Founder , Palo Alto Software
11 Oct 2011