The Latest from Jonathan Friedman
The Erosion Of “Same Round, Same Price”
It seems most founders believe investors asking for “extras” on the side are simply greedy and short-sighted. While it’s easy to criticize investors, I believe this behavior is driven in large p
What To Do If Your Lead Investor Asks For ESOP
As valuations continue to rise, early stage VCs are getting more “creative” with their deal structuring. In particular, I’ve seen a rise in requests for ESOP shares to be allocated to lead inves
Buy/Hold/Sell In Venture Capital
A common rule of thumb among early stage VCs is to reserve 2–3X dollars for every $1 initially invested in a startup. This is in order to maintain ownership levels in selected portfolio companies an
Read This Before Meeting VCs For Pre-Pitch “Advice”
Startups often ask VCs for pre-pitch meetings. These requests usually are positioned along the lines of, “We aren’t looking for money yet, just advice.” Of course, we all know this is just a nic
Three Reasons Your Term Sheet May Fall Through
So you’ve made it past all the VC grilling and received a term sheet. Congratulations! But don’t celebrate just yet. Term sheets are non-binding, and even though they should signify a VC has convi
Is Competition Really For Losers?
While declaring “competition is for losers” has become fashionable among unicorn-chasing VCs, most founders still reject this line of thinking. They know there is a gray area, and that large marke
The “Common Plus” Opportunity
It’s become increasingly common for early-stage entrepreneurs to “lead their own rounds” via the use of convertible notes. In cases where they set financing terms themselves, they often set a hi
How Top Founders Juggle Term Sheets
Breakout startups that are ready for “Fundraising Acceleration” often face the challenge of managing interest from multiple investors. Having been involved in a number of these startups first-hand
The Key To Raising Your Seed Extension Round
Given the growth in seed funding driven by the combined forces of the "Micro-VC glut" and increasing activity by angel investors (often via crowd funding), it’s become increasingly common to meet so