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Quick Thoughts on Term Sheets and LOIs

Rob Go

When a VC invests in a startup, the two parties usually sign a term sheet that lays out the major terms of the investment round. 90%+ of term sheets result in a closed deal that is more or less equivalent to what was discussed. In the M&A process, an LOI feels an awful lot like a term sheet.

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“I Can Really See Us Leading This Funding Round” Isn’t a Term Sheet

Hunter Walker

This rarely occurs with established investors, because they know breaking their word is a reputation killer around our community. Whether it’s a hiring manager holding some candidates at bay while they continue interviewing. Can someone develop a reputation for being a Mr or Ms Maybe or overpromising and underdelivering?

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Tale of Two Valleys: LA and the Bay Area from an Investor’s Perspective

Mucker Lab

After stints as a technology investment banker, a dot-com entrepreneur, and a product manager in Silicon Valley, I moved to Los Angeles in 2006. Encyclopedic knowledge of term sheets and startup buzzwords can be quickly learned, trained, and packaged. Ability” vs. “Knowledge”. The top tier funds see almost all of the best deals.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

It is essential to understand the funding structure stated in your term sheet and the advantages and disadvantages it may have for your business. Under this category, you have the angel investors who would invest their own money and Venture Capital or VC firms, who manage funds aimed towards specific startup sectors and stages.

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How to Work with Lawyers at a Startup

Both Sides of the Table

I’ve met several people from Cooley Godward who have stellar reputations in this category. How to manage costs - One of the biggest frustrations that people have with lawyers are unexpected costs. He was the first guy that I saw demystify the legal terms in his term sheet series. Good people and evil people.

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VC Partner Sweet Spot: The Always-Sometimes-Never Rules for Pitching the Right Investor

View from Seed

ultimately, a term sheet) when pitching any given firm? Always take into account an individual VC’s reputation. Even if a firm has a great reputation, sometimes individuals at that firm aren’t as pristine. Even if a firm has a great reputation, sometimes individuals at that firm aren’t as pristine.

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Find Egg-breakers: People With Influence & Authority and Are Unafraid to Use Them

Both Sides of the Table

And don’t assume that because a person’s title is “managing partner” or “founding partner” that this necessarily means that person has more authority than other partners. And get advice from them on how to best manage the approval process.

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