What should an entrepreneur look out for when negotiating a term sheet with a VC?
SaaStr
MARCH 23, 2019
One simple thing: complexity. 99% of terms and term sheet should be simple and straightforward: price. the amount invested (and % ownership for investors / cap table). pool for stock options and employees. board construction and seats that are proportionate, roughly, to ownership. standard venture terms — pro rata, IPO registration rights, etc. timing (if/when term sheet expires).
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