The point about board control in early-stage deals is interesting. I've noticed a shift in how VCs approach board seats, with many now preferring observer roles instead of full board seats.
I'm particularly interested in how this trend might affect founder control and decision-making. Do you think this more hands-off approach from VCs will lead to better founder-investor relationships in the long term?
The section about round size flexibility is particularly insightful. I've seen many promising startups lose potential investors by asking for too much. Your advice about understanding fund size limits is crucial.
I wonder if you could elaborate on how founders should approach valuation discussions when they have limited traction but strong potential. What's the best way to justify a higher valuation without appearing unrealistic?
I've been through several term sheet negotiations, and your point about leverage coming from having multiple offers rather than who goes first is spot on. In my last round, having two term sheets on the table made the entire process much smoother.
I'm curious about your thoughts on milestone-based funding. In my experience, while it can protect investors, it often creates unnecessary pressure on founders. How do you suggest balancing investor protection with founder flexibility?
Great overview of key VC term sheet terms! As a founder, understanding these clauses isn't just about legal protection, it’s about strategic control and alignment with your long-term vision. Terms like liquidation preference, anti-dilution, and board composition can significantly shape both the upside and the risks of your venture. I always advise founders to see the term sheet as a negotiation of the relationship, not just the deal. Thanks for breaking it down so clearly!
The point about board control in early-stage deals is interesting. I've noticed a shift in how VCs approach board seats, with many now preferring observer roles instead of full board seats.
I'm particularly interested in how this trend might affect founder control and decision-making. Do you think this more hands-off approach from VCs will lead to better founder-investor relationships in the long term?
The section about round size flexibility is particularly insightful. I've seen many promising startups lose potential investors by asking for too much. Your advice about understanding fund size limits is crucial.
I wonder if you could elaborate on how founders should approach valuation discussions when they have limited traction but strong potential. What's the best way to justify a higher valuation without appearing unrealistic?
I've been through several term sheet negotiations, and your point about leverage coming from having multiple offers rather than who goes first is spot on. In my last round, having two term sheets on the table made the entire process much smoother.
I'm curious about your thoughts on milestone-based funding. In my experience, while it can protect investors, it often creates unnecessary pressure on founders. How do you suggest balancing investor protection with founder flexibility?
Great overview of key VC term sheet terms! As a founder, understanding these clauses isn't just about legal protection, it’s about strategic control and alignment with your long-term vision. Terms like liquidation preference, anti-dilution, and board composition can significantly shape both the upside and the risks of your venture. I always advise founders to see the term sheet as a negotiation of the relationship, not just the deal. Thanks for breaking it down so clearly!