One of the most amazing moments in the life of every newly christened creator is the sweet relief of seeing a term sheet can be found in from an investor. After weeks, perhaps months (however ideally not years!), of work fundraising and pitching, there is nothing like getting that email with a PDF connected to it laying out the conditions of the VC relationship going forward.
Naturally, that rejoicing dampens rapidly as all the particular subtleties of the deal unexpectedly concerned the forefront. It’s one thing to get the evaluation you want, or the amount of capital you are looking for, but what about the setup of the board of directors? What should you do about deal terms that may form your start-up for a years or more?
The reality of term sheets, as our visitor Lior Zorea goes over, is that the terms you agree to early on at a startup tend to be the terms that will execute for the life of the company. That suggests getting that first term sheet right is vital for making sure the monetary and capital success of your service.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.