Comments on: Ideal first round funding terms

By: Term Sheets > Founders Institute: New "Plain Preferred" Term Sheet > TheStartup411 (tm)

Mon, 26 Sep 2011 18:16:26 +0000

[...] Dixon posted about an ideal term sheet for first round funding, which started an blogosphere discussion about terms. Fred Wilson came [...]

By: Best Practices For Raising a VC Round

Best Practices For Raising a VC Round — Thu, 22 Sep 2011 18:01:05 +0000

[...] you really like, have a “buy it now price” and if they hit that valuation (and other terms are clean) do the deal. Otherwise, say you’d like to “run a process” and include them in it.5. Try to [...]

By: Fundstorm » Terms, Terms, Terms

Fundstorm » Terms, Terms, Terms — Tue, 28 Jun 2011 06:08:20 +0000

[...] Chris Dixon also had good advice on first round terms back in August 2009 http://cdixon.org/2009/08/16/ideal-first-round-funding-terms. [...]

By: So you want to raise seed capital… – Tipps von Chris Dixon

So you want to raise seed capital… – Tipps von Chris Dixon — Tue, 14 Jun 2011 12:48:58 +0000

[...] 7. What terms should you look for? Here are ideal terms. [...]

By: cdixon.org – chris dixon's blog / Notes on raising seed financing

cdixon.org – chris dixon's blog / Notes on raising seed financing — Thu, 09 Jun 2011 22:02:26 +0000

[...] What terms should you look for? Here are ideal terms. You need to understand all these terms and also the difference between convertible notes and [...]

By: download de filmes

download de filmes — Fri, 27 May 2011 01:16:00 +0000

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 Jogos para celular - Download filmes

By: How to Raise Venture Capital « Startups

How to Raise Venture Capital « Startups — Tue, 24 May 2011 21:01:25 +0000

By: Roy Firestein » 10 Best Practices For Raising A VC Round

Roy Firestein » 10 Best Practices For Raising A VC Round — Thu, 05 May 2011 09:07:42 +0000

By: 10 Best Practices For Raising A VC Round - Finding Out About

10 Best Practices For Raising A VC Round - Finding Out About — Wed, 04 May 2011 21:28:37 +0000

[...] like, have a “buy it now price” and if they hit that valuation (and other terms are clean) do the deal. Otherwise, say you’d like to “run a process” and include them [...]

By: 10 Best Practices For Raising A VC Round - Athens Report

10 Best Practices For Raising A VC Round - Athens Report — Wed, 04 May 2011 21:18:53 +0000

[...] like, have a “buy it now price” and if they hit that valuation (and other terms are clean) do the deal. Otherwise, say you’d like to “run a process” and include them [...]

By: cdixon.org – chris dixon's blog / Best practices for raising a VC round

cdixon.org – chris dixon's blog / Best practices for raising a VC round — Wed, 04 May 2011 19:51:01 +0000

[...] like, have a “buy it now price” and if they hit that valuation (and other terms are clean) do the deal. Otherwise, say you’d like to “run a process” and include them in [...]

By: The Next Step in Standardized Term Sheets: VC Declarations

The Next Step in Standardized Term Sheets: VC Declarations — Thu, 03 Feb 2011 15:02:33 +0000

[...] There has been a lot of fantastic chatter over the last few weeks about standardized funding docs. I caught wind of it from (no surprise) Brad and Fred‘s fantastic posts on the VC side, which led to Chris Dixon’s also amazing post on the entrepreneur side of the equation. [...]

By: Quora

Quora — Tue, 01 Feb 2011 08:43:16 +0000

What type of funding terms can be negotiated with an investor?…

Depends a lot on the investor, the company, and the type of investment. For a startup raising a typical equity round, the most important things to negotiate are valuation and round size. Depending on how much leverage you have, a lot of terms can be ne…

By: SeriesSeed.fi Brings Standardized Legal Documents For Startups – ArcticStartup

Tue, 01 Feb 2011 06:32:16 +0000

[...] sources: Fred Wilson of Union Square Ventures: The Ideal First Round Term Sheet Chris Dixon: The Ideal First Round Funding Terms Looking for a job? Hiring? Check out the ArcticStartup Job [...]

By: Technical Aspects Of Raising A Seed Round | Adam Waaramaa

Technical Aspects Of Raising A Seed Round | Adam Waaramaa — Sat, 01 Jan 2011 19:09:35 +0000

[...] Chris Dixon’s Ideal First Round Term Sheet: http://cdixon.org/2009/08/16/ideal-first-round-funding-terms/ [...]

By: How To Raise A Seed Round | Adam Waaramaa

How To Raise A Seed Round | Adam Waaramaa — Mon, 27 Dec 2010 03:08:28 +0000

[...] Chris Dixon’s Ideal First Round Term Sheet: http://cdixon.org/2009/08/16/ideal-first-round-funding-terms/ [...]

By: electronic pet door

electronic pet door — Wed, 08 Sep 2010 12:56:00 +0000

I will feed your RSS after this useful article. Thanks a lot.

By: Justin Heikkinen

Justin Heikkinen — Wed, 01 Sep 2010 04:01:06 +0000

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

Picking a Startup Lawyer in NYC « The Metamorphosis — Fri, 23 Jul 2010 01:22:52 +0000

[...] 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

Don Hecker Lawyer Headlines » Don’t be creative about the wrong things — Thu, 18 Mar 2010 15:02:13 +0000

[...] 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

Tue, 16 Feb 2010 15:21:35 +0000

By: 2startups

2startups — Sat, 02 Jan 2010 11:35:38 +0000

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

Mark Essel — Sun, 29 Nov 2009 21:08:36 +0000

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

Yesdi — Wed, 30 Sep 2009 20:14:18 +0000

“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

Fri, 25 Sep 2009 22:01:16 +0000

[...] Show original post here [...]

By: Ganapathy

Ganapathy — Thu, 03 Sep 2009 16:42:28 +0000

The Angels should also be subject to drag

By: Point of order: Standardised termsheets are not the answer for startups

Point of order: Standardised termsheets are not the answer for startups — Thu, 03 Sep 2009 14:42:03 +0000

[...] fair amount of debate and comment over the past few weeks. VC Chris Dixon got the ball rolling with his post on the ideal termsheet, then Fred Wilson weighed in and finally the mighty Michael Arrington, no less, on TechCrunch, [...]

By: John

John — Sun, 30 Aug 2009 01:53:08 +0000

“That being said, my time is more valuable than your money.”

1) Then don’t take the money.

and

2) The after tax dollars Angels put into these ventures are a tangible manifestation of their own sweat equity that has actually been translated into value – Money. Follow me here; the dollars represent not only hard work but hard work that was exchanged for money in excess of “necessities” now used for this investment. Those dollars are not speculative they have an objective proven value.

The attitude that your time is worth more is a big part of the problem.

By: Pat

Pat — Tue, 25 Aug 2009 15:31:38 +0000

“Founder salaries – these should be “subsistence” level and no more.”

I agree with the idea the that founders should be getting wealthy with customer dollars not investor dollars. That being said, my time is more valuable than your money. I can never get more time in my life. I must be able to recoup all my invested time and savings. My family’s financial well-being depends on this. My extended family is poor and would not be able to help if my family suffered any major financial setback ( disability or death). Any investment offer that does not recognize these fundamental realities is not worth taking.

By: 投資家の起業家虐待を防止するThe Fundedの＜最初の資金調達ラウンド用のタームシート＞

投資家の起業家虐待を防止するThe Fundedの＜最初の資金調達ラウンド用のタームシート＞ — Tue, 25 Aug 2009 11:15:28 +0000

[...] 今月初めにエンジェル投資家でHunchのファウンダChris Dixonが彼のブログに、ベンチャーキャピタリストはベンチャーの投資ラウンドに関し標準的でファウンダフレンドリーな取引条件を用いてほしい、と書いた。記事中には彼が提案する条件の一覧もある。Dixonはこう言っている: “私の好みとしては、上の条件をすべて守り、交渉事項は評価額と投資増額の2点のみとすることである。” [...]

By: TheFunded publishes a plain vanilla term sheet for VCs | Hot Trends 2 Tweet

TheFunded publishes a plain vanilla term sheet for VCs | Hot Trends 2 Tweet — Tue, 25 Aug 2009 08:26:28 +0000

[...] Term Sheet,” the document (embedded below) was inspired by a recent debate sparked by entrepreneur Chris Dixon (co-founder of Hunch) and investor Fred Wilson, who have been seeking a way to simplify the complicated provisions that [...]

By: Floost

Floost — Tue, 25 Aug 2009 01:50:23 +0000

Hmm… I read blogs on a similar topic, but i never visited your blog. I added it to favorites and i’ll be your constant reader.

By: Shared Items - August 24, 2009 « Jeetu’s Shared Memory

Shared Items - August 24, 2009 « Jeetu’s Shared Memory — Mon, 24 Aug 2009 23:47:59 +0000

[...] Ideal first round funding terms [...]

By: chris

chris — Mon, 24 Aug 2009 22:23:09 +0000

Martin – Actually these terms were written by a founder who is also an active investor and who prefers these terms as an investor as well. I certainly try to only invest in people I trust but only a few are close friends.

I’d be curious which protections you think are important and missing.

By: martin tobias

martin tobias — Mon, 24 Aug 2009 22:10:19 +0000

I can see this “ideal” term sheet was written by a founder with a huge chip on his shoulder. The problem is that these terms only work under “ideal” circumstances. That is friendly founder and investor (whatever kind). There are VERY few deals like that. The farther away from CLOSE FRIENDS the investor/founder are the more protections the investor will need. I have raised over half a billion dollars for various startups and invested personally over $20M of my own funds as well as funds as a partner at a VC firm. The right terms are those that get the deal done and correctly balance risk/reward at the time. The so called “un founder friendly” terms are in fact shifting the risk/reward scale over to the investor because they feel they need more reward for a higher risk. That is in many cases appropriate.

By: Ideal first round funding terms | Igniting Startups - nPost

Ideal first round funding terms | Igniting Startups - nPost — Mon, 24 Aug 2009 17:07:41 +0000

[...] From cdixon.org [...]

By: TheFunded publishes a plain vanilla term sheet for VCs | Newsfed - Aggregate local and tech stories with related videos and tweets!

Mon, 24 Aug 2009 17:02:22 +0000

By: TheFunded publishes a plain vanilla term sheet for VCs | UpOff.com

TheFunded publishes a plain vanilla term sheet for VCs | UpOff.com — Mon, 24 Aug 2009 16:08:04 +0000

By: TheFunded publishes a plain vanilla term sheet for VCs | TechDozer.Com

TheFunded publishes a plain vanilla term sheet for VCs | TechDozer.Com — Mon, 24 Aug 2009 16:00:47 +0000

By: TheFunded publishes a plain vanilla term sheet for VCs | Stoth

TheFunded publishes a plain vanilla term sheet for VCs | Stoth — Mon, 24 Aug 2009 15:43:17 +0000

By: The Funded Publishes Ideal First Round Term Sheet | Tech stuff center

The Funded Publishes Ideal First Round Term Sheet | Tech stuff center — Mon, 24 Aug 2009 15:06:55 +0000

[...] this month angel investor and Hunch founder Chris Dixon wrote a blog post requesting that venture capitalists start to use standard, founder-friendly deal terms for venture [...]

By: The Funded Publishes Ideal First Round Term Sheet | Codedstyle

The Funded Publishes Ideal First Round Term Sheet | Codedstyle — Mon, 24 Aug 2009 14:30:18 +0000

[...] this month angel investor and Hunch founder Chris Dixon wrote a blog post requesting that venture capitalists start to use standard, founder-friendly deal terms for venture [...]

By: SortiPreneur

SortiPreneur — Mon, 24 Aug 2009 12:54:25 +0000

Ideal Term Sheet…

There was a post on AVC last week (inspired by a post by Chris Dİxon) on what type of issues are important on early stage VC term sheets. Both posts and the comments are must-reads for any entrepreneur looking to……

By: The Far Edge » Blog Archive » The Funded Publishes Ideal First Round Term Sheet

Mon, 24 Aug 2009 08:38:28 +0000

[...] this month angel investor and Hunch founder Chris Dixon wrote a blog post requesting that venture capitalists start to use standard, founder-friendly deal terms for venture [...]

By: “Standard term sheet” suggestions at VentureWoods - India's leading venture capital community

Mon, 24 Aug 2009 08:36:50 +0000

[...] Chris Dixon has earlier proposed his (similar) “standard” termsheet here. [...]

By: Tech Whiz Underground » The Funded Publishes Ideal First Round Term Sheet

Tech Whiz Underground » The Funded Publishes Ideal First Round Term Sheet — Mon, 24 Aug 2009 07:55:48 +0000

[...] this month angel investor and Hunch founder Chris Dixon wrote a blog post requesting that venture capitalists start to use standard, founder-friendly deal terms for venture [...]

By: The Funded Publishes Ideal First Round Term Sheet | CHARGED's Digital Lifestyle at Work or Play

Mon, 24 Aug 2009 07:53:09 +0000

[...] this month angel investor and Hunch founder Chris Dixon wrote a blog post requesting that venture capitalists start to use standard, founder-friendly deal terms for venture [...]

By: The Funded Publishes Ideal First Round Term Sheet | The IT Chronicle

The Funded Publishes Ideal First Round Term Sheet | The IT Chronicle — Mon, 24 Aug 2009 07:33:43 +0000

[...] this month angel investor and Hunch founder Chris Dixon wrote a blog post requesting that venture capitalists start to use standard, founder-friendly deal terms for venture [...]

By: The Funded Publishes Ideal First Round Term Sheet

The Funded Publishes Ideal First Round Term Sheet — Mon, 24 Aug 2009 07:28:18 +0000

[...] more per venture round. Earlier this month angel investor and Hunch founder Chris Dixon wrote a blog post requesting that venture capitalists start to use standard, founder-friendly deal terms for venture [...]

By: The Funded Publishes Ideal First Round Term Sheet | Technology

The Funded Publishes Ideal First Round Term Sheet | Technology — Mon, 24 Aug 2009 07:03:33 +0000

[...] this month angel investor and Hunch founder Chris Dixon wrote a blog post requesting that venture capitalists start to use standard, founder-friendly deal terms for venture [...]