Last year, I participated in the first-ever Capital Factory “summer” for start-ups here in Austin, Texas. SpareFoot was one of the 5 companies that participated. And out of that experience, SpareFoot received Series A investment from Silverton Partners and Maples Investments and is executing well today. Based on that alone, Capital Factory 1.0 was a [...]
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Slow Capital and Capitally-Disciplined Start-ups PART 2
NOTE: I just changed themes; if you like the blog, please subscribe over there to the right, near the top. Thanks. In the last post, I framed up the relationship between the “Slow Capital” concept and the characteristics of a capitally-disciplined start-up. This post describes the implications of each high-level characteristic of both concepts because [...]
Funding Spreadsheet, Part 3: Liquidation Preference & Participation
This is part 3 of our discussion on financing with our example capitalization and ownership spread sheet. Part 1 is here; part 2 is here. In this post, we will dig into two important terms: Liquidation Preference and Participation. Also, here is the link to our Example Series A Term Sheet. This “typical” term sheet [...]
Series A Preferred Example Term Sheet
SUMMARY OF TERMS SERIES A PREFERRED STOCK FINANCING OF [[ COMPANY NAME ]] This is a summary, for negotiation purposes only, of certain principal terms of the proposed Series A Preferred Stock financing of [[Company Name]], a [[State Name]] corporation (the “Company”) by [[Investor Name]] and other Investors referred to below. This summary of terms [...]
Funding Spreadsheet & Discussion, Part 2
This is part 2 of a high-level discussion of funding, dilution, terms, and their effect. Part 1 is here. This brief update adds two very simple concepts: legal/banking/etc Fees and Capital Gains Taxes. Capital gains tax rates — the tax rates that apply to one’s gains on “capital assets” such as stocks, mutual funds, bonds, [...]
