Cofounder Liquidation Preference Pay to Play Reputation 
Scott Edward Walker
SEPTEMBER 14, 2011
It is important for founders to understand that VC term sheets are usually deemed to be “non-binding” (other than perhaps a few provisions, such as the “no-shop” provision and legal fees and expenses). What Are the Key Issues for Founders? Fourth, founders should button-down all of the key issues in the term sheet.
Feld Thoughts
JULY 14, 2015
The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company. So the new investment gets 60%, the founders get 39.9%, and the $1m of seed money gets 0.1%. And developing a reputation for recapping seed rounds is, in my book, silly. Sure – it happens.
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