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What Did I Learn From the First VC Check I Ever Wrote?

Both Sides of the Table

Defensible IP When I’m asked by newer, younger VC partners for advice on our sector, one of the things I always emphasize is looking for companies who have built defensible intellectual property (IP). Defensible IP becomes insanely valuable?—?particularly Of course the media doesn’t do nuance well so this is an emotional topic.

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5 Startup Killers And How to Avoid Them

Tech Zulu Event

Equity split. As part of the agreement, put a vesting plan in place for your equity. If you haven’t legally assigned the property rights to your company, you don’t own the IP even if your co-founder developed it while working on your business. Protect your IP : Patents are the gold standard. Relative cash contributions.

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Some Career Advice for Aspiring Tech CEOs

Both Sides of the Table

Of course you could start your own company. Of course I’m not suggesting people shouldn’t start a company. There are many companies with phenomenal IP that is truly differentiated but where the original executive team squandered their opportunity due to inability to sell, market or service customers.

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Bad Notes on Venture Capital

Both Sides of the Table

It’s like we need a finance 101 course for entrepreneurs. “But lawyers will charge much more for equity.” Try doing THAT with equity. Convertible notes have both features in them but for some reason entrepreneurs don’t understand it. There were no metrics. So a convertible note was easier. And so forth.

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How to Work with Lawyers at a Startup

Both Sides of the Table

You never got around to agreeing exact equity splits but you had many conversations about it. Shame about not getting it in legal writing that you owned the original IP. Oh, they didn’t cover that in your Stanford CS course? I write about some of the lessons in my post on Startup Mistakes.

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What Are We Talking About When We Talk Valuation?

Tech Zulu Event

Valuation is one of those ubiquitous words: at least when it comes to discussions around startups — and, of course, stock market multiples. Do you see the overlap with the factors that come into play for equity valuations? Recent equity sales i.e., comparables. But it can be confusing because there is not just one type.

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What is it Like to Negotiate a VC Round?

Both Sides of the Table

” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. Of course investors care about controls (board, protective provisions, IP assignments, non-solicitation) but these are all pretty standard. Those are the big three.