Read on Twitter
Actually reading this.
Boy do I have some stories for you @jasonmendelson and @bfeld on Term offers from VCs that I’ve walked away from :)
Do you have an email address where I can share?
Boy do I have some stories for you @jasonmendelson and @bfeld on Term offers from VCs that I’ve walked away from :)
Do you have an email address where I can share?
Seeing as we are here now, I’m going to share some of these stories for ya’ll to laugh at and more importantly learn from!
#startup #founder #terms #VCS
#startup #founder #terms #VCS
I’d like to start with:
I
my investors dearly. They are brill. I’ve raised from @atomico @seedcamp and @rgaventures (VCs). I’ve also raised from a handful of Angels & friends. $800K + to date for @cup_club through a standard TS & ASA.
I
my investors dearly. They are brill. I’ve raised from @atomico @seedcamp and @rgaventures (VCs). I’ve also raised from a handful of Angels & friends. $800K + to date for @cup_club through a standard TS & ASA.
I’m sharing here what I’ve experienced first hand whilst on my journey so far. What’s remarkable is how oddly unregulated the whole #vc space is. I come from the construction industry, having trained as an Architect where specifying even a tap
is prescribed in a certain way.
is prescribed in a certain way.
I’m offering 3 stories. Names have been changed to ‘sounds like’ alternatives.
1. Future is Female:
It was Mar ‘19 & through a series of conversations, the MD of ‘Coolez Capital’ gives us a verbal offer to lead the round with £750K out of a £1.5M round.
CFO lead the meeting.
1. Future is Female:
It was Mar ‘19 & through a series of conversations, the MD of ‘Coolez Capital’ gives us a verbal offer to lead the round with £750K out of a £1.5M round.
CFO lead the meeting.
We started the raise that very month so a TS in 3 weeks was pretty good!
We asked for the *actual* TS so we could see the offer in principle. This was when things got weird. Apparently the TS was on its way. 4 weeks went by. Finally we got a TS with a lot of caveats. Oh dear!
We asked for the *actual* TS so we could see the offer in principle. This was when things got weird. Apparently the TS was on its way. 4 weeks went by. Finally we got a TS with a lot of caveats. Oh dear!
Coolez: we don’t have a fund that’s closed. We have a billionaire who’s coming in with a cheque of X. Until that cheque is in our account, which is ANY DAY NOW, we can’t start the negotiations.
Now this was my first TS remember. I assumed this was OK.
Now this was my first TS remember. I assumed this was OK.
It wasn’t. Firstly, why is a fund allowed to solicit a biz with financing it DOES NOT HAVE?
I’m going to repeat this sentence as I think it’s very simple:
Is a fund allowed to solicit a biz for financing when it has no funds?
@ASA_UK @TheFCA
You would think no.
#regulation
I’m going to repeat this sentence as I think it’s very simple:
Is a fund allowed to solicit a biz for financing when it has no funds?
@ASA_UK @TheFCA
You would think no.
#regulation
Anyways, another 4 weeks passed. No updates on when fund would close that ‘billionaires’ cheque.
We were getting weekly updates on progress of this mystery money transfer.
By end of May ‘19 I was ‘back in the office’ after having my first born.
I had to sort this mess out.
We were getting weekly updates on progress of this mystery money transfer.
By end of May ‘19 I was ‘back in the office’ after having my first born.
I had to sort this mess out.
I emailed the fund to tell them we were no longer entertaining them.
I also wrote a side of caution in my email to them to say it was inappropriate of them to solicit a biz when they have no financing.
Never got a response.
I am a big believer in doing the right thing.
I also wrote a side of caution in my email to them to say it was inappropriate of them to solicit a biz when they have no financing.
Never got a response.
I am a big believer in doing the right thing.
Sometimes the right thing is to walk away. I think if you’re building a great biz, the money will come. Honestly. If you’re putting in everything and it feels right, you can be sure others will see this.
Do the right thing by YOURSELF. Say no when something doesn’t feel right.
Do the right thing by YOURSELF. Say no when something doesn’t feel right.
We had raised interest from @atomico Angel program, ex COO of @Barclays and some Angels. So what we decided was to get an ASA out and bring in the money.
Summer ‘19 saw us expand our operations in the UK.
Looking back, I wish I called it sooner. I wish I spoke to my investors.
Summer ‘19 saw us expand our operations in the UK.
Looking back, I wish I called it sooner. I wish I spoke to my investors.
I neglected to message them and ask for their advice on day 1. Instead I wasted 2months and then wrote to them once it was all over.
I think you always want news to be positive when it comes to investors. I was hoping this fund would close their financing!
(Crazy I know.)
I think you always want news to be positive when it comes to investors. I was hoping this fund would close their financing!
(Crazy I know.)
You learn. A lot. Through doing.
I managed to spend a few summer weeks in
with my little 
as a new mum in the 
Fast forward to Oct ‘20 & I get a message from a female founder via the female founders & VCs WhatsApp group. Coolez Capital did the same thing to her!
#VCS
I managed to spend a few summer weeks in
with my little as a new mum in the Fast forward to Oct ‘20 & I get a message from a female founder via the female founders & VCs WhatsApp group. Coolez Capital did the same thing to her!
#VCS
Same thing, only on a grander scale.
Coolez invested seed £500K (with awful terms) which the founder accepted. Coolez also then offered £2m towards series A which the founder also accepted. Only the £2m never came some 18months later. The founder filed for bankruptcy.
Coolez invested seed £500K (with awful terms) which the founder accepted. Coolez also then offered £2m towards series A which the founder also accepted. Only the £2m never came some 18months later. The founder filed for bankruptcy.
Yes. Her biz is finished. Closed. X number of people with no jobs. Families disrupted and livelihoods destroyed.
How is a fund allowed to provide a TS when it has no funds? @ASA_UK @TheFCA
We are missing critical regulations to safeguard the interests of entrepreneurs
How is a fund allowed to provide a TS when it has no funds? @ASA_UK @TheFCA
We are missing critical regulations to safeguard the interests of entrepreneurs
