Our Portfolio Manager
is at it again! This time he really digs in on preferred stock term sheets. There are many aspects to these term sheets that are critical for founders and investors to understand in all areas from cap table impacts to corporate governance. Our ideal here is that the negotiation process is made clearer and more productive with this knowledge and that all parties are established for success across various rounds of investing and raising money.
A typical investment process has some variation of the following 6 stages: 1.Sourcing, 2. Screening, 3. Preliminary due diligence, 4. Term sheet, 5. Final due diligence, 6. Closing. One stage leads to the next. Once an investment is screened, it proceeds to the preliminary due diligence stage. A term sheet is typically offered in between the preliminary and final due diligence stages, and that’s when negotiations usually begin. This is intentional because it sets the zone of possible agreement (ZOPA) early and indica
GAARP (Growth at a Reasonable Price) Story of a Generation.
by Morgan Paxhia, co-founder of Poseidon.
As investors in cannabis for the last 8 years, we have managed through more than most could fathom in a lifetime. We had one of the most detested 100X returns. We lost bank accounts, we experienced insurance premiums skyrocket due to bad underwriting and early industry frauds. We invested in companies from inception when they had just a few dozen employees to thousands today. We saw forest fires destroy lives and farms, saw companies raided by armed criminals. All told, this industry is not for the faint of heart for those that live in it, work in it, or manage investments. We remain committed because the leaders of the industry view the enormous upside to be gained.
These 5 VCs have high hopes for cannabis in 2021
Cannabis has always been essential to some. While it had seemed to start last year in a bit of a correction, demand for it during the pandemic (and its widespread designation as an essential business), created a breakthrough for the industry. We saw early signs of that in our cannabis investor survey back in May of 2020.
Today, TechCrunch has surveyed five key investors who touch different aspects of the cannabis business, based on our TechCrunch List of top investors who founders recommend to us, and other sources. We asked these investors the same six questions, and each provided similar thoughts, but different approaches. Despite remaining headwinds, the future is looking up for most cannabis businesses, according to these investors.