Blog Entry 6
Yesterday’s focus was on funding at Aalto Garage, with an explanation of how “the game” works when dealing with VC’s.
Notes from the day include:
Venture Capital (investing other else’s money)/Angels (own money investor) Notes
How to do an evaluation?
- Equity (Give out shares)
- Risk?
- Competence
- Timing (Window of Opportunity)
- Valuation
- 30-40% for ex. 2 million Euros
- 40%> are vulture capitalists
- Main Terms
- Take Veto on all major changes in company/they run the show
- Anti Dilution Clause
- Liquidity Preference (7-10%)
- Negotiate Catch-Up (you get your money after they get money invested back)
- Team is most important for VC’s
- Show’s business will deliver
? to ask Venture Capitalist: Have you taken part time management positions when things haven’t gone according to plan?
Rule of Thumb: 12-24 (18) months for the use of the money
During face time with Juha Ruohonen, we were given a few ideas on how we could make money from our product, and were given a list of several venture capitalists we can use. At the end of the day, I guess we could say we learnt the basics of how to deal with venture capitalists!
