Here’s the latest from VentureBeat’s Entrepreneur Corner.
Demystifying the language of VC term sheets – The vocabulary of venture capitalists is sometimes baffling – and they’re able to use that to their advantage. Attorney Scott Edward Walker looks at some of the more confusing terms you might find in term sheets – and lets you know what they mean and what sort of flexibilities they afford.
Why entrepreneurs don’t care about the small business lending act – Congress might think the recently passed small business lending act is a big help to the entrepreneur world, but most small businesses and startups could care less. John Krubski, Research Advisor to The Guardian Life Small Business Research Institute, explains the disconnect between the world view in Washington versus the ground view of business owners.
Rewriting code can be startup suicide – As startups grow, their company’s code sometimes begins to seem bloated and unwieldy. While the first instinct might be to scrap it and start anew, serial entrepreneur Steve Blank warns that doing so is often the beginning of the end for companies.
Why you should care about 409A valuations – Tax code might not be the most exciting topic to focus on, but Petra Loer and Kurtis Handa, Managing Directors in WTAS’ Valuation Services practice, note that ignoring this particular section could cost you – and your employees – a bundle.
Be your startup’s only board member – Getting investment dollars is great, but those investors usually get a seat at your board – and the bigger the board, the bigger the headaches (and the greater the loss of productivity) says serial entrepreneur Brent Constantz.