The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified

Investors Brad Feld, Ann Winblad, and Gabriel Weinberg discuss why they chose not to invest in a startup. Topics include the importance of open communication, lessons in due diligence from a missed investment opportunity, and the significance of the first email interaction with investors.

In this episode of The Full Ratchet, the Takeaways and Tips from Episodes 1 – 10 are recapped.  Every once in a while, review episodes will be released as listeners have requested. Itunes: http://apple.co/1KYMnW6 Direct Audio: http://bit.ly/1Jtoy8J SoundCloud: http://bit.ly/1GF2hmd   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Ann Winblad joins Nick on The Full Ratchet to discuss the stages of fundraising including: We often hear financings referred to as Seed, Series A, Series B, etc.  Can you start us off with a general overview of the stages, the amounts being raised and the average post-money valuations at each? What...   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Venture capital expert Bill Payne joins the host to discuss the key elements and terms of a convertible note. They explore the evolution of convertibles, scenarios where they are more appropriate, and risks and benefits for angel investors. They also cover the timing implications, due diligence approaches, and major elements of a convertible note in startup investing.

Glenn Gottfried joins Nick on The Full Ratchet to discuss early-stage advising including: When you first engage, where are startups at in the fundraising process? Let’s start with “The Where”…  Where do you find startups with strong-potential? Once you’ve identified a startup, what happens next in the initial engagement process? What is...   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Gabriel Weinberg joins Nick on The Full Ratchet to discuss why most startups fail including: Many talk about how startups fail b/c of product or building a product.  You believe that the main source for startup failure, is for a different reason.  Tell us what that is. You’ve noted five mistakes that contribute...   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Brad Feld joins Nick on The Full Ratchet to discuss the Term Sheet including: Economic Terms: Valuation Liquidation preference:  preference and participation Pay-to-play Vesting Employee pool and/or the option pool Anti-dilution Control Terms: Board of Directors & Board Observers Protective Provisions Drag-Along Agreement Conversion Itunes:  http://bit.ly/XDVSZR   Direct-audio:  http://bit.ly/1sb4ofz   SoundCloud:...   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Jeffrey Carter (part 2) where we finish the discussion on Valuation and also address ethics, and the Midwest Venture Environment.  Key Takeaways: I wanted to highlight a few...   Itunes:  http://bit.ly/1qL2Uce   Direct-audio:  http://bit.ly/1s1sebY   SoundCloud:  http://bit.ly/1HnmAez Guest Links: Hyde Park Angels, West Loop Ventures, Points and Figures Blog, Points and Figures Tumblr   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Jeffrey Carter  joins Nick on The Full Ratchet to discuss Valuation, including: Why is the valuation and price/share a critical deal term for investors to be well-informed about? What is the difference between a pre-money and post-money valuation and can you give us an example that illustrates what each would be...   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Michael Gruber joins Nick on The Full Ratchet to discuss Angel Groups, including: What is an angel group? What are the key functions of the Angel Group Leader or Coordinator? What value does an angel group provide to its investors? When investments are made, how are they typically organized? We’ve discussed...   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.