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VC Lab introduces free fund formation documents to make startup investing cheaper and easier

TechCrunch

There may be plenty of funding for some startups these days. Today, VC Lab is providing a set of freely available boilerplate documents intended to streamline the process, save everyone time and money and make fund governance structures more accessible. “We Similar fund formation documents regularly run into the hundreds of pages.

VC 101
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Reflection on Local Angel Investment From Inside Out

Gust

This is a good time to reflect on my experience with locally based angel investment. I just finished with the fourth of our annual angel investment event for my local group based in Eugene and Corvallis, Oregon. This year we started with more than 30 submissions from startups. I say yes definitely.

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What are the most valuable recommendations in order to raise money from VCs connected via Gust?

Gust

Browse through the many hundreds of video answers to startup questions that we’ve filmed from the world’s leading VCs and angels. Take the time to read, cover to cover, The Definitive Guide to Raising Money from Angels , by the legendary Bill Payne.

VC 159
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Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. At least one well-known Silicon Valley venture accelerator is using a document referred to as a “ convertible security ” rather than “convertible promissory note.” In fact, there is a recent variation on this theme.

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Knowledge Is Power: Convertible Note Financing Terms, Part V

Gust

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. Having made it almost to the end of our sample term sheet: Documentation. First, it’s worth noting that we’re proposing to have Company counsel draft the documents.

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Valuations 101: Scorecard Valuation Methodology

Gust

For this round of investment, the angels collectively purchase 20-40% of the equity of the company and are seeking a return on investment of 20-30X in a period of five to eight years. Active angels invest in a diversified portfolio of 10 or more companies, usually spreading their investments over a few years.

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Knowledge Is Power: Convertible Note Financing Terms, Part III

Gust

That is obviously a challenge for the typical cash-strapped early stage startup that is seeking to raise more capital and is not in any kind of position to be repaying loans. Thus, it’s in everyone’s best interest to see the startup raise more capital rather than declaring default and demanding repayment.

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