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Keep Term Sheets Simple for Quicker Cash to Spend

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It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Anti-dilution protection. But some dilution is almost inevitable. Due diligence and paperwork take time, and can change everything. Right of first refusal.

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Knowledge Is Power: Convertible Note Financing Terms, Part IV

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(i) Preferred Stock (if a Preferred Financing is pending at the time of the transaction) or, (ii) if no Preferred Financing is pending, to Common Stock at a price per share equivalent to a fully diluted pre-money valuation of $3 million, to be paid in the same form of consideration (e.g.,

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