The Brandon White Show (EDGE for peak performance)
Venture Capital Funding and Investment Terms with Nareg Essaghoolian from Decrypted Legal & Consulting
We explore the world of startup funding and venture capital. Nareg shares insights on the use of safe notes, valuation caps, and discounts in pre-seed rounds.
We discuss the importance of having a product or service with positive revenue when seeking institutional investment and the challenges faced by first-time founders in securing funding.
We also dive into how the investor market has changed over the last few years and give advice to anyone looking to raise money from investors.
About Nareg Essaghoolian
Nareg Essaghoolian is the co-founder of Decrypted Legal & Consulting. He represents startups from day one at formation through their venture capital financings and exit.
Prior to Decrypted, he spent several years at Cooley in Palo Alto, CA, one of the most prominent firms in the industry.
He is now back in Los Angeles where he is born and raised working on disrupting the legal industry by being more transparent with pricing and services.
EPISODE LINKS
- Nareg Essaghoolian on LinkedIn
https://www.linkedin.com/in/nareg-essaghoolian/ - Decrypted Legal and Consulting
https://www.instagram.com/decryptedlaw
EPISODE TIME STAMPS
[00:00:47] - Startup legal expertise from UCLA
[00:02:20] - VCs don't do follow-on investments?
[00:03:20] - Smart decision, reduced risk, 10x return.
[00:03:46] - "Investors don't follow: Crazy thought."
[00:04:29] - Sequoia loses trust, no follow-on investment.
[00:05:16] - "Ten times return on investment"
[00:05:55] - Y Combinator: Accelerate, Invest, Return.
[00:06:47] - Angel investors not investing in Series B, C.
[00:07:44] - Tech, web three, down rounds.
[00:08:35] - "Protective terms more prevalent than pay-to-play."
[00:09:31] - "Understand cap table terms: Liquidation Preference"
[00:10:06] - Investors get preferential treatment.
[00:11:01] - Double-dipping liquidation preference.
[00:11:34] - Negotiating Leverage for Investors
[00:12:25] - Investor gets 20% upside.
[00:12:58] - Participating Preferred: 18M Shared
[00:13:47] - "Accumulating dividends of 6% annually."
[00:14:30] - Investors leveraging market, waiting.
[00:15:23] - "Maximize returns in venture cap
CONNECT WITH US
Get Your Weekly EDGE Newsletter. It's FREE.
Bottom Line Up Front (BLUF)
Brandon writes a weekly email newsletter called EDGE that over 22,000 people rely on for an edge to achieve their best selves in business and life.
Content
Brandon writes about what he knows...lessons from a business idea on the back of a napkin to…2x exits, 20+ strike outs, working at two Venture Capital firms, Marketing at America Online, writing a #1 Amazon Best Seller, Podcasting, Angel Investing, 25 years of Marriage, Philanthropy, Public service, Fitness and Peak performance.
Who it's for
People that want to achieve their full potential.
Claim your edge with others who have been getting a step ahead.
Link to sign up: https://edge.ck.page/bea5b3fda6
A Podcast for entrepreneurs and peak performers
Part of the Best Podcast Network: Productivity Podcast, Marketing Podcast, Business Plan Podcast, ...
We explore the world of startup funding and venture capital. Nareg shares insights on the use of safe notes, valuation caps, and discounts in pre-seed rounds.
We discuss the importance of having a product or service with positive revenue when seeking institutional investment and the challenges faced by first-time founders in securing funding.
We also dive into how the investor market has changed over the last few years and give advice to anyone looking to raise money from investors.
About Nareg Essaghoolian
Nareg Essaghoolian is the co-founder of Decrypted Legal & Consulting. He represents startups from day one at formation through their venture capital financings and exit.
Prior to Decrypted, he spent several years at Cooley in Palo Alto, CA, one of the most prominent firms in the industry.
He is now back in Los Angeles where he is born and raised working on disrupting the legal industry by being more transparent with pricing and services.
EPISODE LINKS
- Nareg Essaghoolian on LinkedIn
https://www.linkedin.com/in/nareg-essaghoolian/ - Decrypted Legal and Consulting
https://www.instagram.com/decryptedlaw
EPISODE TIME STAMPS
[00:00:47] - Startup legal expertise from UCLA
[00:02:20] - VCs don't do follow-on investments?
[00:03:20] - Smart decision, reduced risk, 10x return.
[00:03:46] - "Investors don't follow: Crazy thought."
[00:04:29] - Sequoia loses trust, no follow-on investment.
[00:05:16] - "Ten times return on investment"
[00:05:55] - Y Combinator: Accelerate, Invest, Return.
[00:06:47] - Angel investors not investing in Series B, C.
[00:07:44] - Tech, web three, down rounds.
[00:08:35] - "Protective terms more prevalent than pay-to-play."
[00:09:31] - "Understand cap table terms: Liquidation Preference"
[00:10:06] - Investors get preferential treatment.
[00:11:01] - Double-dipping liquidation preference.
[00:11:34] - Negotiating Leverage for Investors
[00:12:25] - Investor gets 20% upside.
[00:12:58] - Participating Preferred: 18M Shared
[00:13:47] - "Accumulating dividends of 6% annually."
[00:14:30] - Investors leveraging market, waiting.
[00:15:23] - "Maximize returns in venture cap
CONNECT WITH US
Get Your Weekly EDGE Newsletter. It's FREE.
Bottom Line Up Front (BLUF)
Brandon writes a weekly email newsletter called EDGE that over 22,000 people rely on for an edge to achieve their best selves in business and life.
Content
Brandon writes about what he knows...lessons from a business idea on the back of a napkin to…2x exits, 20+ strike outs, working at two Venture Capital firms, Marketing at America Online, writing a #1 Amazon Best Seller, Podcasting, Angel Investing, 25 years of Marriage, Philanthropy, Public service, Fitness and Peak performance.
Who it's for
People that want to achieve their full potential.
Claim your edge with others who have been getting a step ahead.
Link to sign up: https://edge.ck.page/bea5b3fda6
A Podcast for entrepreneurs and peak performers
Part of the Best Podcast Network: Productivity Podcast, Marketing Podcast, Business Plan Podcast, ...