The Future of Term Sheets

The predictable pendulum swing of harsher terms during a buyer's market lead to a lively online discussion on the future of the term sheet.  A dialogue between influential bloggers -- entrepreneurs and venture capitalists alike -- including Chris Dixon, Fred Wilson, and the eponymous Brad Feld extol the benefits of a simple, standardized, Series A term sheet (see posts by…

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Location, Location, Location. Not.

 Investing locally is a mantra of many venture firms.  The desire to conveniently monitor, interact, and network with their portfolio companies has lead to some long return trips for out-of-town entrepreneurs.  Now a recent working paper suggests that the Think Global, Invest Local view is bunk.  Among the findings: investments in regions where a venture firm has no presence outperform…

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2Q Venture Investments: Is this the new normal?

Most media coverage of Venture Capital investments in the second quarter split the baby: the $3.7 billion invested in 612 companies was either way down (from the $7.6B raised by 1,048 companies in 2Q 2008) or heading up (from the $3.2 billion invested in 601 companies in 1Q 2009).  Neither half takes the long view. Looking back at the last…

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The “Promote”

Flybridge's Jeff Bussgang has a nice blog piece where he coins a new word in the venture lexicon: the "promote" (not the Prestige).  Entrepreneurs too often fixate on their pre-money valuation (the "pre"), instead of focusing on what their equity is worth after the venture check has hit the bank account. For Jeff, the "promote" is where an entrepreneur should…

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