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Keep Term Sheets Simple for Quicker Cash to Spend

Startup Professionals Musings

It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Angels may want the first right to purchase shares held by the other angels in the deal before they are sold to an outside party. But some dilution is almost inevitable.

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A Primer on Angel Investment ‘Simple Term Sheets’

Startup Professionals Musings

It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Angels may want the first right to purchase shares held by the other angels in the deal before they are sold to an outside party. But some dilution is almost inevitable.

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Keep Term Sheets Simple for Quicker Cash to Spend

Gust

It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Angels may want the first right to purchase shares held by the other angels in the deal before they are sold to an outside party. But some dilution is almost inevitable.

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Are Investors Being Unreasonable? - Startups and angels: Along the.

Tim Keane

"  The problem has been that too-high valuations and too generous terms have spawned painful down rounds that squash the entrepreneur and his early investors.    New money, usually VC money, comes in and crams down those early investors and takes substantial shares from the entrepreneur.