Comments on: Ideal first round funding terms http://cdixon.org/2009/08/16/ideal-first-round-funding-terms/ Wed, 08 Sep 2010 12:56:00 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: electronic pet door http://cdixon.org/2009/08/16/ideal-first-round-funding-terms/comment-page-3/#comment-10120 electronic pet door Wed, 08 Sep 2010 12:56:00 +0000 http://www.cdixon.org/?p=271#comment-10120 I will feed your RSS after this useful article. Thanks a lot. I will feed your RSS after this useful article. Thanks a lot.

]]> By: Justin Heikkinen http://cdixon.org/2009/08/16/ideal-first-round-funding-terms/comment-page-3/#comment-10006 Justin Heikkinen Wed, 01 Sep 2010 04:01:06 +0000 http://www.cdixon.org/?p=271#comment-10006 Just came across your blog for the first time the other day and wanted to say thanks for taking the time to share your experiences and knowledge with the rest of us. We are just starting the fund raising process and will obviously rely on our current network to make intros where available and relevant, but would love to read your thoughts on how to stand out when 'cold mailing' firms you have no connection to - even if that advice is to just avoid those firms. Thanks! Just came across your blog for the first time the other day and wanted to say thanks for taking the time to share your experiences and knowledge with the rest of us. We are just starting the fund raising process and will obviously rely on our current network to make intros where available and relevant, but would love to read your thoughts on how to stand out when 'cold mailing' firms you have no connection to – even if that advice is to just avoid those firms. Thanks!

]]> By: Picking a Startup Lawyer in NYC « The Metamorphosis http://cdixon.org/2009/08/16/ideal-first-round-funding-terms/comment-page-3/#comment-9754 Picking a Startup Lawyer in NYC « The Metamorphosis Fri, 23 Jul 2010 01:22:52 +0000 http://www.cdixon.org/?p=271#comment-9754 [...] Read Chris Dixon & Fred Wilson's blog posts on how much legal fees should run in first round financing. Answer: $10k max. Drill this into your head, then drill it into your lawyer's head. Print out both posts and take them to whatever lawyer you hire. Great negotiating tactic. Hard to argue w Fred Wilson. BONUS: Capture the look on their faces when you bust out the printouts with that "$10k" figure underlined/circled/highlighted. Priceless. [...] [...] Read Chris Dixon & Fred Wilson's blog posts on how much legal fees should run in first round financing. Answer: $10k max. Drill this into your head, then drill it into your lawyer's head. Print out both posts and take them to whatever lawyer you hire. Great negotiating tactic. Hard to argue w Fred Wilson. BONUS: Capture the look on their faces when you bust out the printouts with that "$10k" figure underlined/circled/highlighted. Priceless. [...]

]]> By: Don Hecker Lawyer Headlines » Don’t be creative about the wrong things http://cdixon.org/2009/08/16/ideal-first-round-funding-terms/comment-page-3/#comment-7467 Don Hecker Lawyer Headlines » Don’t be creative about the wrong things Thu, 18 Mar 2010 15:02:13 +0000 http://www.cdixon.org/?p=271#comment-7467 [...] 4 year vesting with a 1 year cliff; yes founders should have vesting; yes your deal terms should be plain vanilla. Etc. These things are time tested and you are far more likely to screw things up than create value [...] [...] 4 year vesting with a 1 year cliff; yes founders should have vesting; yes your deal terms should be plain vanilla. Etc. These things are time tested and you are far more likely to screw things up than create value [...]

]]> By: Don’t be innovative about the wrong things cdixon.org – chris dixon's blog http://cdixon.org/2009/08/16/ideal-first-round-funding-terms/comment-page-3/#comment-6980 Don’t be innovative about the wrong things cdixon.org – chris dixon's blog Tue, 16 Feb 2010 15:21:35 +0000 http://www.cdixon.org/?p=271#comment-6980 [...] 4 year vesting with a 1 year cliff; yes founders should have vesting; yes your deal terms should be plain vanilla. Etc. These things are time tested and you are far more likely to screw things up than create value [...] [...] 4 year vesting with a 1 year cliff; yes founders should have vesting; yes your deal terms should be plain vanilla. Etc. These things are time tested and you are far more likely to screw things up than create value [...]

]]> By: 2startups http://cdixon.org/2009/08/16/ideal-first-round-funding-terms/comment-page-3/#comment-5586 2startups Sat, 02 Jan 2010 11:35:38 +0000 http://www.cdixon.org/?p=271#comment-5586 It is fine for VCs to ask for subsistence level salary. Do they not take management fees? Why do they share in the upside and not in the downside as far as their LPs are concerned. Innovation does not come from engineers who are forced to count their pennies... It is fine for VCs to ask for subsistence level salary. Do they not take management fees? Why do they share in the upside and not in the downside as far as their LPs are concerned. Innovation does not come from engineers who are forced to count their pennies…

]]> By: Mark Essel http://cdixon.org/2009/08/16/ideal-first-round-funding-terms/comment-page-3/#comment-4897 Mark Essel Sun, 29 Nov 2009 21:08:36 +0000 http://www.cdixon.org/?p=271#comment-4897 It was fun looking back at a comment I left at the end of August on this 13th popular post Chris. 10/10 for the great advice to those seeking funding and for getting me to reread a couple of key concepts. The concept I was describing then, has actually been realized (although in a limited way). Woot for progress. It's evolving in some different ways than I first imagined though, which is pretty groovy. It was fun looking back at a comment I left at the end of August on this 13th popular post Chris. 10/10 for the great advice to those seeking funding and for getting me to reread a couple of key concepts.

The concept I was describing then, has actually been realized (although in a limited way). Woot for progress. It’s evolving in some different ways than I first imagined though, which is pretty groovy.

]]> By: Yesdi http://cdixon.org/2009/08/16/ideal-first-round-funding-terms/comment-page-3/#comment-3496 Yesdi Wed, 30 Sep 2009 20:14:18 +0000 http://www.cdixon.org/?p=271#comment-3496 "I would hope all engineers do an expected value calculation. If they don’t believe the company is exceptional, they shouldn’t join." Which is exactly what happens - most startups are NOT exceptional (by definition), people refuse to join for subsistence salary and the company is forced to pay market rates. The only problem is when someone (either the VC or the founder) is deluded enough to persist in their belief that offering a subsistence salary is what makes the company exceptional, rather than the other way around. “I would hope all engineers do an expected value calculation. If they don’t believe the company is exceptional, they shouldn’t join.”

Which is exactly what happens – most startups are NOT exceptional (by definition), people refuse to join for subsistence salary and the company is forced to pay market rates.

The only problem is when someone (either the VC or the founder) is deluded enough to persist in their belief that offering a subsistence salary is what makes the company exceptional, rather than the other way around.

]]> By: Ideal first round funding terms — cdixon.org – chris dixon’s blog | work4real.net http://cdixon.org/2009/08/16/ideal-first-round-funding-terms/comment-page-2/#comment-3067 Ideal first round funding terms — cdixon.org – chris dixon’s blog | work4real.net Fri, 25 Sep 2009 22:01:16 +0000 http://www.cdixon.org/?p=271#comment-3067 [...] Show original post here [...] [...] Show original post here [...]

]]> By: Ganapathy http://cdixon.org/2009/08/16/ideal-first-round-funding-terms/comment-page-2/#comment-2011 Ganapathy Thu, 03 Sep 2009 16:42:28 +0000 http://www.cdixon.org/?p=271#comment-2011 The Angels should also be subject to drag The Angels should also be subject to drag

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