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Founders. Run. Amok. It Starts With a Term Sheet.

This is going to be BIG.

Last week, for just the second time ever, I passed on an investment opportunity because of the terms of the deal--both the price and the legal structure of the agreement. The Term Sheet. They got that way due in large part to a very public founder friendly stance. Perhaps we all should. I certainly have. Rules like respect.

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5 Steps To Finding The Best Investor For Your Startup

Startup Professionals Musings

If all this checking sounds a bit paranoid and unnecessary, it may be time to take another look at some questionable investor practices and onerous term sheet requests. To get the terms you want, it’s better to start with your own term sheet. It’s no fun for either side.

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Survive the Term Sheet Negotiation and Investor Due Diligence Part 1

Gust

The post Survive the Term Sheet Negotiation and Investor Due Diligence Part 1 appeared first on Gust. There is a different kind of stock that investors can choose to purchase, called preferred stock. While the name makes it seem preferable to common stock, preferred is not inherently better, it’s just different. Here’s why.

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Signed Term Sheet

ithacaVC

We (Cayuga Venture Fund) just signed up a term sheet with a new company (Company X). Rather I want to briefly comment on the process leading up to the term sheet and next steps. We presented our first draft of the term sheet to Company X about a week ago. First, the process: 1. It is now mid December.

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Survive the Term Sheet Negotiation and Investor Due Diligence Part 2

Gust

The post Survive the Term Sheet Negotiation and Investor Due Diligence Part 2 appeared first on Gust.

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4 Keys To A Successful Integrity Check With Investors

Startup Professionals Musings

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. This is the mysterious and dreaded due diligence process, which can kill the whole deal.

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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.