Mercato Partners’ Post

💼 When negotiating funding with VCs, 𝐚 𝐭𝐞𝐫𝐦 𝐬𝐡𝐞𝐞𝐭 𝐢𝐬 𝐨𝐧𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐦𝐨𝐬𝐭 𝐜𝐫𝐢𝐭𝐢𝐜𝐚𝐥 𝐝𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐬 𝐲𝐨𝐮'𝐥𝐥 𝐜𝐨𝐦𝐞 𝐚𝐜𝐫𝐨𝐬𝐬. It sets the foundation for the investment agreement, outlining key financial terms and conditions that both founders and investors agree upon before drafting legal documents. Here's a breakdown of some essential terms in a VC term sheet: 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 & 𝐌𝐢𝐥𝐞𝐬𝐭𝐨𝐧𝐞𝐬 📊: Determines the company's pre-money valuation and sets key business milestones for staged investments. 𝐓𝐲𝐩𝐞 𝐨𝐟 𝐒𝐡𝐚𝐫𝐞𝐬 💰: VCs often invest in preferred shares, which offer rights such as liquidation preference over common shares. 𝐋𝐢𝐪𝐮𝐢𝐝𝐚𝐭𝐢𝐨𝐧 𝐏𝐫𝐞𝐟𝐞𝐫𝐞𝐧𝐜𝐞𝐬 🔄: In case of liquidation, preferred shareholders may receive their investment back first, sometimes with multiples. 𝐀𝐧𝐭𝐢-𝐝𝐢𝐥𝐮𝐭𝐢𝐨𝐧 𝐏𝐫𝐨𝐯𝐢𝐬𝐢𝐨𝐧s 📉: Protects investors from dilution if future shares are issued at a lower valuation (down round). Board Representation 👥: Investors may negotiate a seat on the company's board to ensure their voice in major decisions. Understanding these terms empowers founders to navigate VC funding confidently and aligns expectations with investors from the get-go. 𝐂𝐫𝐞𝐝𝐢𝐭: NZVCA / Simpson Grierson #VentureCapital #TermSheets #StartupFunding #Entrepreneurship --------------------------------- 💡 +𝟭𝟬,𝟬𝟬𝟬 𝗽𝗮𝗴𝗲𝘀 𝗼𝗳 𝗙𝗿𝗲𝗲 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀 𝗖𝗼𝗺𝗽𝗶𝗹𝗲𝗱 𝗳𝗼𝗿 𝗬𝗼𝘂 https://lnkd.in/gHy4qpBJ

Ketan Parmar - our office boy came to me to discuss investment strategies. After my session on financial wisdom, he got a curiosity to manage his ongoing savings. He has been investing 3000 Rs/month in LIC like many others. I took the time to understand his financial goals and needs. I explained to him how he can start investing in MFs and stocks gradually. While I explained to him the power of compounding interest, I could see a huge smile on his face. He seems like he knows that way now. I believe this is the best part of entrepreneurship where you can create an impact for your team beyond the professional terms. AtliQ Technologies #lifeatatliq #finance #investment #savings #enterpreneurship #stocks #mutualfunds

Unlocking Growth: Private Equity Perspectives In the realm of business evolution, private equity firms stand tall as catalysts for strategic transformations.  Entrepreneurs eyeing expansion or exit strategies find valuable allies in these PE powerhouses, with their expertise and financial prowess. With intricate negotiations and adept capital structuring, PE transactions unlock new avenues of growth. Diverse portfolios are the cornerstone, enabling risk mitigation and seizing market opportunities. Whether you're a visionary entrepreneur or a PE player, the private equity landscape offers boundless potential. 🌐 Visit our website: https://lnkd.in/gQn3APjv #CBC_advisors #CrossBorder #EquityRaising #BusinessStrategy #PrivateEquity #SuccessTips #BusinessGrowth #Investment #PEPower #InvestSmart #FutureFocused #MarketInsights

💡 Excited to Share a New Chapter with You! 💡 Over the past few months, I’ve been working on something I’m truly passionate about: empowering individuals to explore the world of private equity and take control of their financial growth. Now, we’re entering an exciting new chapter with Beaufort Private Equity, where we offer a space for people who want to: 🔑 Learn about private equity investment opportunities in a clear and straightforward way. 🌟 Access opportunities that aren’t typically available to everyone. 🤝 Connect with a community of like-minded individuals seeking to grow and diversify their portfolios. I’d love for you to take a look at what we’re building and see if it’s something that resonates with you. 👉 Visit https://lnkd.in/du2xwiUE to learn more, or feel free to message me directly—I’d be happy to chat! Here’s to exploring new opportunities and embracing growth in 2025. 🚀 #PrivateEquity #FinancialGrowth #InvestmentOpportunities #Entrepreneurship

⏳ The countdown has begun! Only a few days left until our webinar on mastering the new rules for raising capital. We are honored to be a featured guest and share our expertise. Benefits of attending: • Regulatory Compliance: Stay updated with the latest changes in securities regulations. • Effective Syndication Structures: Learn how to structure partnerships and investments for maximum impact. • Advanced Fundraising Techniques: Discover innovative approaches to attract and secure investors. • Networking: Connect with industry experts and like-minded professionals. 🚀 Register now: https://lnkd.in/gaTDuTdj #FinalCountdown #Webinar #CapitalRaising #InvestmentStrategies #SelfStorage #Regulations #AINetwork #BusinessGrowth #Entrepreneurs #AngelInvestors

Here's why funding is a nightmare for minority businesses. Did you know only 0.2% of publicly traded companies in the US are minority-owned? This lack of representation reflects a larger issue: access to capital for minority entrepreneurs. Public capital markets can be a powerful tool for growth, but for many, it's an out-of-reach dream. Here are 3 key takeaways: ✔Diversity = Economic Advantage: When minority-owned businesses thrive, they create jobs, fuel innovation, and strengthen local economies. ✔Rethinking Public Markets: We need a shift from a "one-size-fits-all" approach to stock exchanges. Tailored support and regulatory frameworks can empower smaller companies, especially those led by minorities. ✔Venture Exchanges Offer Hope: These exchanges cater to the specific needs of small and mid-sized businesses, providing crucial liquidity and oversight. This is more than just finance; it's about creating equal opportunity. Minority entrepreneurs deserve a shot at building thriving public companies. What are your thoughts on this topic? Share your experiences or insights in the comments!

Allegiance Capital was founded in 1998 by David Mahmood, who experienced firsthand the challenges of selling businesses. After merging and selling seven of his own companies, he saw a need for M&A advisors who could market businesses effectively—not just handle the paperwork. That’s why Allegiance is a marketing-first M&A investment bank, helping business owners of companies with $20M–$500M in revenue transition, grow, or find financial partners. With entrepreneurial bankers who speak “Main Street,” they make complex deals accessible. Curious how we can help? DM me!

Equity 101 by Carta: Understanding equity and cap tables is crucial for anyone involved in a startup. As brilliantly explained in the "Equity 101" guide by Erin Boehmer at Carta, equity isn't just compensation; it's potentially life-changing. Key Insights: 1) Equity Types: From RSUs to options and warrants, each has unique characteristics and implications. 2) Cap Tables: These documents are vital for tracking ownership, understanding your potential payouts, and your position in the company. 3) Vesting Schedules: Know when and how you can exercise your options to maximize benefits. 4) Tax Implications: Navigating taxes with tools like the 83b election can save you a significant amount in the long run. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

⏳ The countdown has begun! Only a few days left until our webinar on mastering the new rules for raising capital. We are honored to be a featured guest and share our expertise. Benefits of attending: • Regulatory Compliance: Stay updated with the latest changes in securities regulations. • Effective Syndication Structures: Learn how to structure partnerships and investments for maximum impact. • Advanced Fundraising Techniques: Discover innovative approaches to attract and secure investors. • Networking: Connect with industry experts and like-minded professionals. 🚀 Register now: https://lnkd.in/giaF2KZZ #FinalCountdown #Webinar #CapitalRaising #InvestmentStrategies #SelfStorage #Regulations #AINetwork #BusinessGrowth #Entrepreneurs #AngelInvestors

💡 Did You Know? At Pacific Coast Alternatives (PCA), we specialize in helping entrepreneurs, investors, and independent sponsors unlock liquidity from their private, illiquid assets. Whether it’s private equity holdings, real estate interests, or LP stakes, our tailored lending solutions are designed to provide capital without forcing a sale or diluting ownership. PCA’s innovative credit products can be utilized to: ✅ Fund equity contributions for new acquisitions ✅ Bridge liquidity gaps ahead of an exit or IPO ✅ Buy out partners ✅ Meet capital call obligations ✅ Support follow-on investments and growth We understand the unique challenges of working with illiquid assets and believe in delivering capital solutions that align with your long-term goals. 🌐 Interested in learning more? Explore our website or reach out to see how PCA can support your next strategic move. (www.pcalts.com) 👉 Follow us for insights on innovative capital solutions! #PrivateEquity #LiquiditySolutions #AlternativeCapital