article thumbnail

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 Over the past 2.5 particularly as you achieve scale.

article thumbnail

Bad Notes on Venture Capital

Both Sides of the Table

“But lawyers will charge much more for equity.” Lawyers don’t make money on your seed round in any instance. Try doing THAT with equity. I often will fund 80+% of a round and move quickly. And so forth. ” Not in my experience. A few M&A transactions. Employment. Stock Option plans.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Some Career Advice for Aspiring Tech CEOs

Both Sides of the Table

He wants a chance at changing life’s circumstances with building equity value that might free him and his family from the rat-race of 529 accounts, property taxes, summer-school tuitions and even spending some cash on aging parents. There is often money to be made in finding places with under-valued IP. He still has the dream.

article thumbnail

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. In the old days there usually weren’t convertible notes on early-stage deals and there weren’t party rounds with 20 angels or 6 seed funds. Those are the big three.

article thumbnail

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

So money spent should add equity value or create IP that eventually will. If you have raised a limited amount of money from angels, accelerators or seed funds be very careful about having a high burn rate. Best to make sure you’re aligned closely with your investor on this topic.

Startup 383
article thumbnail

Top 120 Startup Posts for 2010

SoCal CTO

Both Sides of the Table , July 22, 2010 An updated Digital Trends presentation - Jeff Hilimire , June 2, 2010 I do what I hate - Jessica Mah , January 7, 2010 Startup Equity Allocation - charliecrystle.com , January 11, 2010 When good investment decisions end up backing more women CEOs: Conversation with Cameron Lester at Azure Capital.

Startup 378