Term sheets: Exploding Offers

One of my mentors once said, VCs love to be the first to be second. They don’t want to be the first to issue a term sheet, but will issue one quickly once someone else has.

Don’t Try To Force Fit Your Model Into A VC’s Thesis

My colleague, Thatcher Bell, once told me that the challenge in the fundraising process is in the matching. Each VC is looking for something different and it’s usually difficult for entrepreneurs to figure out what a VC wants before…

Twitter Tech Communities

In an attempt to weave some more connective tissue into our community I have launched a few twitterbots.

Each of the bots below
is designed so that any message sent to them is published by the bot,
making that message visible to all of the bot’s followers. If…

The No Shop Clause

When a VC issues a term sheet, it typically includes a ‘no shop’ clause, which prohibits the entrepreneur from speaking to other investors while the VC completes his due diligence.

As a result, it’s very important that an entrepreneur asks the VC what his intentions are…

When VCs Issue Term Sheets

VC term sheets provide the investors with a fixed amount of time to conduct additional due diligence on the company before the deal closes. In this due diligence window the VC can opt to terminate the deal.