This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
For those of us who’ve invested in early-stage companies, especially technology startups, we have confronted a universal problem. There are many ways to project the value of a company for purposes of pricing an investment, but all rely upon the revenue and profit projections of the entrepreneur as a starting point.
Here’s the problem: Investors sometimes join into investment rounds that have been pre–negotiated by others, receiving the paperwork already created by attorneys from that negotiation. How do you confront the investors who have already agreed to terms and even perhaps signed their documents? Passively sign and hope for the best?
For those of us who’ve invested in early stage companies, especially technology startups, we have confronted a universal problem. There are many ways to project the value of a company for purposes of pricing an investment, but all rely upon the revenue and profit projections of the entrepreneur as a starting point.
The investor organization is granted the seat as long as the investment remains, and the documents often name the first representative assigned by the investor group to the position. Almost always, professional investors, including angel groups and venture capitalists, also require at least one seat on the corporate board.
Investors sometimes join into investment rounds that have been pre-negotiated by others, receiving the paperwork already created by attorneys from that negotiation. Changing the deal that late in the game is nearly impossible, after other investors have already completed their documents and the deal supposedly put to bed.
The new investment gives RCS Capital a majority stake in Docupace. Docupace develops electronic document management software for managing the operations of broker-dealers. RCS Capital (RCAP) is a retail investment firm. Financial details of the deal were not disclosed. READ MORE>>.
Irvine-based GoDocs, a developer of legal document preparation software, said today that it has raised round of investment from private equity investor M33 Growth, and appointed a new CEO. Size of the investment round was not announced. According to the company, it has appointed Steve Butler as CEO of the company.
Los Angeles-based CapLinked , an online startup developing software to help link entrepreneurs with their investors, has raised $350,000 in an equity investment round, according to a regulatory filing by the firm today. Tags: caplinked paypal mafia venture capital investment startup entrepreneur. READ MORE>>.
CapLinked develops an online, cloud-based platform used to manage due diligence and deal documents, and which competes against deal room management software. caplinked venture capital investment dealroom virtual document collaboration saas software' READ MORE>>.
To protect against such an event, almost every professional investor includes a clause in the investmentdocuments which allow the investor to “put” the stock back to the company after five years, requiring the company to pay back the investment plus dividends accrued during the term of the investment. Draconian terms?
Utilizing AI, the tool interprets the queries, scans through a broad range of documents spread across different repositories, and delivers relevant answers. Utilizing AI, the tool interprets the queries, scans through a broad range of documents spread across different repositories, and delivers relevant answers.
NetDocuments , the developer of a cloud-based platform for managing the documents of law firms and corporate legal and compliance departments which is backed by Santa Monica-based private equity investor Clearlake Capital , has scored a new, strategic funding. Size and terms of that investment was not announced by the companies.
Irvine-based Kofax said late Wednesday that it has invested $500,000 in Mobiflex , a developer of software tools for creating iPhone and Android apps without coding. Kofax said the deal will allow its customers to use iPhone, iPad, Android phones, and Android tablets to input documents and photographs into its systems. READ MORE>>.
Bluebeam was a spun out of Alliance Spacesystems, and has received investments from both the Pasadena Angels and Tech Coast Angels. architecture document international nemetschek acquisition merger software bluebeam' READ MORE>>.
West Hills-based Peloton Document Solutions , a company developing software which helps investment bankers, private equity investors, and companies to communicate financial information via interactive documents, has scored a strategic investment from R.R. Financial terms of the investment were not disclosed.
Los Angeles-based private equity investor Diversis Capital Partners has made a "significant" growth investment in Toronto-based Adlib, a developer of software used for structuring data. Size of that investment was not announced. Diversis invests in software and technology companies, investing in lower middle-market companies.
Santa Monica-based Docstoc , the online business documents site headed by Jason Nazar, has quietly been ramping a video content effort at the site. In a new section on Docstoc's web site, the firm has been sharing dozens of video segments featureing business tips and advice from entrepreneurs from Southern California's technology community.
To protect against such an event, almost every professional investor includes a clause in the investmentdocuments which allow the investor to “put” the stock back to the company after five years, requiring the company to pay back the investment plus dividends accrued during the term of the investment.
500 Hats , January 10, 2010 Developing new startup ideas - Chris Dixon , March 14, 2010 Batch Processing Millions and Millions of Images - Code as Craft , July 9, 2010 jQuery Plugin: Give Your Characters a NobleCount - The Product Guy , March 23, 2010 How do the sample Series Seed financing documents differ from typical Series A financing documents?
Investors don’t invest in services startups. Here are some pragmatic tips on how to make your startup more scalable and investable: If you need investors, start with a scalable idea. These are more likely scalable and investable. Just because all your buddies think an idea is cool, that doesn’t mean it is scalable.
Sooner or later you may need to seek venture capital and accommodate the needs of the venture community in negotiating the terms of an investment. First, VC’s in general cannot invest in ‘S’ corporations or limited liability companies (LLC’s). What VC’s can and cannot do. How did you structure your first round? .
CapLinked, headed by Eric Jackson and Christopher Grey, operates an online site which helps manage private investment deals and documents. CapLinked said the largest volume of deals on the service is now real estate, with $3 billion in deals, followed by energy deals, representing $1.7 READ MORE>>.
Eric is also author of the book The PayPal Wars: Battles With Ebay, the Media, the Mafia, And the Rest of Planet Earth , where he documented that experience. It connects companies with investors, allows investors to forward on referrals to other investors, and once an investment has been made, allows a company to post updates to the site.
One of Southern California''s most active angel investors, Howard Lindzon , said Wednesday that he is backing Estate Assist , which offers up an online storage service for important documents like wills, life insurance, and bank account information--in case you get hit by a bus tomorrow. READ MORE>>.
Manhattan Beach-based CapLinked , the developer of a software-as-a-service tool for managing venture capital and angel fundraising efforts for companies, said today that it has launched a free library of document templates covering the startup process. READ MORE>>.
The problem of amplification: The problem got worse as the data flowed out to the “bulge bracket&# investment banks. They got the data feed either from the research company or from the investment bank. 18% of all errors come from people using the wrong documents. I told this story to every consultant I knew at the time.
Irvine-based Kofax , which develops document capture and process automation software, said today that it has been selected by mortgage loan processing company CashCall. kofax mortgage document processing mobile capture' Kofax said that CashCall is using its mobile app to streamline and automate mortgage loan processing. READ MORE>>.
Small companies most often scrape by with borrowed or invested funds, doing everything possible to grow and prosper with limited resources. Recognize the realities of the times; and do all possible to protect the company by documenting behavioral or skill related problems to the employee file.
A punch in the gut Small companies most often scrape by with borrowed or invested funds, doing everything possible to grow and prosper with limited resources. Recognize the realities of the times; and do all possible to protect the company by documenting behavioral or skill related problems to the employee file.
Email readers, continue here…] I was chairman of a company that had been offered an investment by a Fortune 500 company offering to make a strategic investment in our business, which would be capable of driving new demand to the large company through a series of new web services creating a greater need for the large company’s products.
No details on the investment were disclosed. LegalZoom operates an online service which allows users to purchase legal documents. Glendale-based LegalZoom said last week that it has added Institutional Venture Partners and Kleiner Perkins Caufield & Byers as investors in the firm. READ MORE>>.
Riot Ventures , the Los Angeles-based, early-stage and deep technology investment firm is going out to market to raise a $75 million second fund to finance the development of startups in LA and beyond, according to fundraising documents viewed by TechCrunch. Marcus has a long background in angel investing and company creation.
Even venture capitalists who sit on boards where they have significant investments often forget this point. They write in their investmentdocuments that they will occupy a seat on the board for as long as they are invested in the company, thinking of this as a protection for their investment and tool for them to influence growth.
Irvine-based Kofax Software , the developer of document capture software, reported a win in Italy today, with an Italian bank. Kofax said the customer has now invested more than $1M in its software. Name of the customer was not announced. Name of the customer was not announced. READ MORE>>.
Sooner or later these businesses will have to seek venture capital and accommodate the needs of the venture community in negotiating the terms of an investment. First, VC’s in general cannot invest in ‘S’ corporations or limited liability companies (LLC’s). Email readers, continue here.]
If I could persuade you that they’re already in these documents would you consider abandoning this structure? Those terms you fought so hard to get out of “clean term sheets” by using TheFunded, VentureHacks and the like are in your current documents. That’s right. Investors call Bull Cap. Enter “the cap.”
Sean is also author of Startup Field Guide, Mistakes To Avoid, Tips to Get Ahead , documenting what he's learned over his time in the startup world. The region has it's own set of challenges because it lacks the investment dollars and talent pool you'll find in the Bay Area.
Manhattan Beach-based CapLinked said this week that it has made some major updates to the site, overhauling and improving the online service for managing investment activity for companies and deal tracking for investors. CapLinked is backed by Peter Thiel, Joe Lonsdale of Palantir Technologies, Dave McClure of 500Startups, and Aman Verjee.
If you’re seeking investment from anyone other than friends and family, you’re probably going to have to navigate through the exercise of careful planning, documentation and execution. And who is right here? Email readers, continue here.] Investors are a fickle bunch in general.
If you seek funds from an organized investment group such as an angel fund, venture capital entity, or even an investment club, the first thing you want to do is to find one person to buy into your vision, become excited by your enthusiasm and be willing to become the internal champion for your fund-raising effort.
The company, which employed about 160 people, laid off 57 workers, according to documents filed with the California Employment Development Department. Founder and CEO Kevin Czinger didn’t provide specific numbers. However, he did confirm to TechCrunch that he had to reduce staff due to the COVID-19 pandemic.
Investmentdocuments usually call for quarterly reporting by the company to the investors. Less than a quarter of companies receiving early-stage investment voluntarily fulfill this promise. Usually, one or more of the investors is placed on the board as a requirement of the investmentdocumentation.
Generally speaking in venture capital financings the legal documents will specify that only “major investors” (a threshold set in the agreement – which can be $500,000 investor or more). We led an investment round in a company a while ago in which we wrote a seven-figure check and have taken a board seat.
To protect against such an event, almost every professional investor includes a clause in the investmentdocuments which allow the investor to “put” the stock back to the company after five years, requiring the company to pay back the investment plus dividends accrued during the term of the investment.
We organize all of the trending information in your field so you don't have to. Join 5,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content