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Venture Capital Demystified: A Fundraising Guide for Entrepreneurs, Investors, and Lawyers

YoungUpstarts

If a VC offers you a term sheet, expect their lawyers to ask you for more information like capitalization tables, contracts, material agreements, employment agreements, and board meeting minutes. This is the firm that will give you a term sheet, take a leadership role in driving financing, and likely be your most active new investor.

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Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

The bottom line: Startup CEOs/Founders need to do the projected capitalization table math on an as-converted, post-money basis from Day 1, before issuing any notes and modeling various possible future scenarios. It will be worth the time and effort.