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Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

Your historical trading information including financials and a “customer file” which shows the history of your transactions so that investors can run “cohort” analyses Customer reference, personal references, key team members, compensation, cap table, stock option plan, etc. and then asking to take a brochure home with you.

Funding 336
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One Man’s Signal is Another Man’s Noise

Both Sides of the Table

I’m sitting at my computer now at 9.00pm writing this – which is an hour earlier than I normally write (there are about 8 women at my kitchen table having a book club (aka excuse to drink wine & gossip so I’m locked in another room writing. Mostly during the day I’m in meetings or doing work.

Email 287
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Don’t Cede Control: Why You Need to Cut out Middle Men in Negotiations

Both Sides of the Table

But as it goes to the legal docs naturally 20 issues arise the require negotiations. For one, due to the way liquidation preference work sometimes they have “flat spots&# which means that they might earn the exact same amount from a $40 million sale as they would from a $50 million sale. Very customer focused.

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The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

What the entrepreneurs were really saying is, “I don’t want to take a lower valuation now, while I don’t have customers or a full team. So if I write you a $500,000 check into a convertible note with a $4.5 million cap I am assuming when I write the check that I will own 10% of your company. That would suck.

Startup 354