Connect with us

How To

The Art Of Negotiating A Good Term Sheet

Published

on

Art Of Negotiating A Good Term Sheet,Startup Stories,Best Startup Stories Tips,Stock Funding,Negotiate Term Sheet,Negotiating Term Sheet,Negotiating Good Term Sheet for Startups,Negotiation Strategies


When you receive a term sheet for a full term stock funding, it is important to understand every aspect of the term sheet. It can be daunting to understand the different terms and conditions involved in the funding process. So before you get a complete term sheet agreement, here are a few facts you could look at and understand.

1. Understand your leverage 

One of the most attractive variables in any negotiation is to understand the number of variables available. The more investors you have interested in your company, the more leverage you can hold over the investor you are more inclined towards. Always understand and work with the leverages at hand.

2. The makeup of the board of directors 

The makeup of the Board of Directors and governance of the Company going forward is very important.  A typical arrangement following an initial equity financing would be a three person board with one investor representative and two founders as representatives of the common stock. This ensures that your interests, as well as your investors interests, are met with equal representation.

3. Exclusivity 

Make sure to always include the exclusivity clause while negotiating your term sheet. When you do this, you ensure that the contract you have with your investors is binding and confidential. By doing this, you and your investors cover all your assets.

4. Focus on value 

More often than not, when you focus on the end result, you lose out on the bigger picture. This is why when you look at your term sheet, make sure you focus on the long term value of the relationship and not the short term goal.  To maximize valuation without regard for nonfinancial considerations is like signing a baseless term sheet.

5. Add a liquidation preference 

More often than not, investor relationships reach a sour note. It becomes hard to have a proper balance when it comes to this point. The liquidation preference defines the return that an investor receives in a sale of the company, and it can have a significant impact on the founder’s return.  Be sure to model out expected exit values so you can know where you stand once the deal doesn’t work.

In every new relationship, it is easy to get carried away by the prospective offerings. Make sure you figure out what works for you and what doesn’t. Negotiate a term sheet which has both your interests at heart and ensures a fair role share.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

How To

How To Master Your Craft

Published

on

How To Master Your Craft,Startup Stories,2019 Best Motivational Stories,Master of Your Craft,How to Perfect Your Craft,Craft Master,Benefits of Master Your Craft,5 Steps to Master Your Craft,Ultimate Guide to Master Your Craft

It is no secret it is a lot of fun to watch people do what they love. Painters, chess players, pianists and dancers, all these people perform exceptionally well and when you watch them, you realise this is not just a statement. How does this happen? How do people reach a point of success where they love their craft so much, it becomes a part of who they are? It is by following the below suggestions about how to perfect your craft!

1. Find what drives you toward your passion

Picture credits: precisionsourcing.com

Everyone has the power to master certain skills in life. There are so many things one dreams of doing when they were younger, wild and free. The first step of rediscovering what your passion is, is by rediscovering the instinct which drove you toward your passion in the first place. In the process of growing up, you forget what you loved doing, either because of boredom or because of how things pan out. Connect the dots from your childhood, draw a map of what you love, start doing what you loved as a child and slowly, everything starts falling in place. Reconnect to your past and let go of things which are holding you back. Only then can you truly start working toward your passion again.

To sum this up, as Chris Bailey says, “People become experts on a particular subject by accumulating and connecting enough dots related to them, in the form of experiences, knowledge, and best practices. Our brains are naturally programmed to cluster related dots.”

2. Have multiple test runs

Picture credits: youthkiaavaz.com

Mastering a craft is not an overnight process. It takes a lot of time, effort and continuous practice to make sure you know what you have set out to do. Once you have chosen your path, you should start reading and learning about different ways to master your skill. This can be done through a number of ways ranging from classes, books, forums, blogs or guides. At the end of the day, do everything possible to sharpen your skill and craft. Test the things you learn in different formats. Make mistakes and learn from them. If all the artists we love didn’t work and rework on their arts constantly, they wouldn’t be who they are today.

3. Stay consistent with your practice

Picture credits: grammarly.com

Deliberate practice takes a lot of time and effort. However, deliberate practice has certain processes you can follow when it comes to staying consistent. Work with a mentor and tell them what your plans are. When you start working with a mentor, you realise you can do a lot more in life than you thought. Mentors help push your dreams and make them come true. Stay consistent in your practice tips and everything will fall in place. It is not a coincidence that the best pianists, athletes and writers practice over and over till they perfect the art. Keep going at your strengths and everything starts going right.

4. Realise that mastering a craft takes sacrifice

Picture credits: lifehacks.com

People are great at what they do because of the amount of time and effort they put into perfecting their craft. While practice seems like it is enough, the perfection comes because of a great deal of sacrifice as well. What shapes you as a person is your attitude toward your work. If you truly, deeply want to create something extraordinary, the amount of time you put into what you do matters a lot. The amount of time you put into the task is important. If Da Vinci did not sacrifice a life of comfort for a life of hardship, he wouldn’t have been able to create some truly brilliant works of art.  

5. Keep going

Picture credits: ncst.com

While working on your craft, it is important to remember you should keep going, no matter what. Be patient. Van Gogh never sold a noteworthy piece of art his entire life. Jeffrey Archer gained recognition after being arrested for the kind of books he wrote. Different people known for their greatness achieved success because they kept going, no matter what. Stay focused on your goal and work on it, despite all the negativity. Everything you want to do is achievable.

Like Napoleon said, “Nothing is impossible.” There is no wrong time and there is nothing which is truly impossible to achieve. Practicing your trade and perfecting your art is what you need to do in order to stand apart. What are your thoughts about how to perfect your craft? Comment and let us know!

Continue Reading

How To

Different Types Of Chatbots And How To Use Them

Published

on

Different Types Of Chatbots And How To Use Them,Startup Stories,3 types of business chatbots you can build,What are the different types of chatbots?,Types of Chatbots and How They Help Businesses,The Complete Guide to Chatbots in 2018

If you were under the impression that there is only one kind of chatbot, then think again. Although the basic forms of chatbots are the ones used the most frequently, there are different types used for different scenarios. Chatbots use chat mediums and come in a series of types, each designed to benefit your business in the best possible way. If you are looking at the different types of chatbots best suited for your brand, then here’s our most preferred list!

1. NLP based chatbots 

Picture credits: chatbotsmagazine.com

At its very core, chatbots show how artificial intelligence works. NLP chatbots go a step further from the generic chatbots in the sense that they use a combination of AI technology and Natural Language Processing (NLP.) By using a combination of these two forms, this type of chatbot identifies the intent of the use, classifies the messages and then gives answers depending on the language of the texts. In short, NLP chatbots help in creating a uniform communication between your brand and the customer.

2. Menu based chatbots 

Picture credits: smashingmagazine.uk

Similar to the automated menus on phones, these chatbots increase interaction and ensure that when you are looking for the answer, you dig deeper than you normally do. While they may be among the slower form of the chatbots, they help in answering 80% of the questions people usually ask. From helping you answer the basic form of questions to giving you the option of finding the right answers, these type of chatbots help in finding the exact answer for your question.

3. Keyword based chatbots 

Picture credits: chatbotsmagazine.com

Unlike NLP and Menu based chatbots, Keyword based chatbots are extremely user friendly. By using a combination of customizable keywords and AI technology, these chatbots help determine the response which is best suited for the user. Faster and quicker to use than most chatbots, Keyword based chatbots also help in answering questions that basic chatbots don’t have the ability to.

4. Service/Action chatbots 

Picture credits: chatsbotmagazinecom

The best way to describe service/action chatbots is by looking at how they work. By asking and collating data from the user asking the questions, these chatbots answer questions based on what people ask. These type of chatbots are best used by companies in the airline and clothing industry. Compared to the other type of chatbots, the service chatbots are tailor made to answer the users to the best of its abilities.

5. Context based chatbots 

Picture credits: freerangeic.com

Of all the chatbots mentioned in the list, Context based chatbots are the most advanced. By using a combination of machine learning and artificial intelligence, these chatbots not only have meaningful conversations with users, they also remember previous conversations. For example, if you are trying to order pizza from a place you frequent, the chatbot remembers your address and also remembers the last order you made on the app. Using data and user based information is one of the biggest advantages of context based chatbots, giving users a complete experience of how the app works.

Chatbots are designed to improve the user’s experience with the app and help in making your experience with the store that much easier. If you think we missed out on any other chatbots like these, comment and let us know!

Continue Reading

How To

How To Boost Your Self Confidence At Work

Published

on

How To Boost Your Self Confidence At Work,Startup Stories,2019 Best Motivational Stories,Self Confidence At Work,Tips To Boost Your Confidence At Work,Building Self Confidence,Improve Self Confidence at Workplace,Workplace Tips 2019,Self Confidence

There is no one who doesn’t lack confidence. There is no one who always has a handle on all the things in life. There are times in life, especially when you are at work, when you are at your absolute lowest level of confidence and it is at these times that you have to look at how to boost your confidence. Check out these tips for the days when you are at your all time lows and have the Monday blues for the entire week!

1. Work on being the best version of you

Napoleon Hill once said, “What the mind can conceive and believe it can achieve.” Sometimes, when you feel like nothing is going the way it is supposed to, think about where you see yourself. When you are at the lowest level of confidence possible, you tend to have a bad perception of yourself. In order to make the most of the situation in which you are, work at bettering yourself one thought at a time. Keep telling yourself that you can achieve your goals, no matter what and the more you tell your mind what it wants to hear, the more you push yourself to achieve the impossible.

2. Do one thing which terrifies you every day

Often times, there are certain tasks you do in a day which scare you so much, you cannot think of doing other things. In order to get over the hump of low confidence, start your day by doing the task which terrifies you the most that day. The moment you push yourself to do the unexpected and the moment you jump over the fear, you realise, nothing in life is difficult. Push yourself and get out of your comfort zone because there is nothing better in life than believing in yourself.

3. Stop the self bashing

One of the biggest roadblocks people have when it comes to get over the self confidence issues is that you start doubting who you truly are. Stop the self bashing and start giving yourself positive reinforcements. Keep a jar of the positive and negative thoughts and every time you feel really low, take out a note from your positive jar.

4. Learn from your mistakes

They say practice makes one perfect and one of the ways you can improve the growth charts, is by learning from your mistakes. The moment you realise you can actually do better at the mistakes you have made, you instantly improve your self confidence and become better at who you are as a person. Further, this also helps in building your strengths and improves your overall confidence levels.

5. Use the 100 ways of rejection challenge

Jia Jiang, known for coming up with the 100 ways of rejection challenge, has been an inspiration to people all over the world. Becoming famous for making crazy requests to people just so he can get rejected, Jia Jhang worked at desensitizing himself to the idea of rejection in itself. Despite the idea not working in Jia Jiang’s philosophy not working in his favour, the idea proved that no matter what, you have to keep your confidence up and going!

6. Keep learning something new

Every time you get to a point where you think you can’t do any better, it is time to start learning something new. Often times, one falls in a rut because they don’t know how to move beyond their low points. When you are feeling like you don’t know what you are doing and can’t get to the good place, think of how you can learn new skills. Keep pushing yourself to learn something new every day and the more feathers you have in your hat, the more you start feeling better about yourself! Positive affirmation is always the best way to get around the bad times!

7. Focus on your positives

Sometimes in life, you forget all the positive things you have picked up and done in life. Remind yourself that you haven’t always failed in life and that you have done things which have earned you recognition through the years. Every success is the best version of who you are as a person and no one can take those away from you.

The Monday blues are not easy to shake off. However, positive reinforcements and reinstating belief in yourself help in boosting one’s confidence. If you have other tips to make yourself feel better, comment and let us know!

Continue Reading
Advertisement

Recent Posts

Advertisement