Posts filed under: LionBird Guest Post

The Erosion Of “Same Round, Same Price”

It seems most founders believe investors asking for “extras” on the side are simply greedy and short-sighted. While it’s easy to criticize investors, I believe this behavior is driven in large part as a response to conditions founders have created in […]

What To Do If Your Lead Investor Asks For ESOP

As valuations continue to rise, early stage VCs are getting more “creative” with their deal structuring. In particular, I’ve seen a rise in requests for ESOP shares to be allocated to lead investors for their “value added services.” It’s common […]

Why VCs don’t invest in ‘good’ companies

Every VC says they are looking for great founders that are solving real problems in big markets. So why is it that so many “good” companies that seemingly meet these requirements still fail to raise money from VCs? Read more

Buy/Hold/Sell In Venture Capital

Obviously, it’s not optimal to invest the same amount per company in a VC portfolio. Given the often binary returns within VC portfolios, there are usually companies that get more than 2–3x in reserves, and some end up with none. So how […]

Read This Before Meeting VCs For Pre-Pitch “Advice”

Before scheduling pre-pitch “advice” meetings with VCs, make sure you follow these three rules of thumb. Read more

Three Reasons Your Term Sheet May Fall Through

So you’ve made it past all the VC grilling and received a term sheet. Congratulations! But don’t celebrate just yet. Term sheets are non-binding, and even though they should signify a VC has conviction in investing in you and is ready to move towards closing, they fall through more often […]

Is Competition Really For Losers?

While declaring “competition is for losers” has become fashionable among unicorn-chasing VCs, most founders still reject this line of thinking. They know there is a gray area, and that large markets with multiple similar companies can produce multiple success stories. Nevertheless, any startup […]

The “Common Plus” Opportunity

What can you do if you already have an existing convertible note and want to make it attractive for a VC to invest in you now before your next round? Read more

How the right VC can help when you hit a down patch

As a startup closing your first round of funding, everyone is excited by your potential, investing in “the dream”. The plan is always to move smoothly from financing round to financing round, increasing your valuation all the way through IPO […]

Are early stage startup valuations determined at random?

To many, it seems like early stage startup valuations are determined at random. Given that these companies often fetch higher valuations vs. their counterparts in other industries — despite lack of significant revenue, hard assets, or even direct public companies to […]