Dreamit Dose: 5 Biggest Term Sheet Mistakes Founders Make

Dreamit Dose: 5 Biggest Term Sheet Mistakes Founders Make

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When you get a venture capital term sheet, it’s a big moment in your startup’s journey. But the art of the term sheet can elude many founders and startup term sheets can be tricky to evaluate and properly assess. In this guest Dreamit Dose, Daniel Zimmermann, partner at WilmerHale and co-chair of its Emerging Company and Venture Capital Practice, offers his 5 biggest term sheet mistakes founders should avoid. What goes into a term sheet? This Dose starts with term sheet basics and understanding term sheets. We’ll present a term sheet example and in particular, key terms in term sheets. While this is less of a term sheet template for founders, it applies to all rounds of early-stage financing, including angel term sheets and those from institutional investors. You’ll learn the anatomy of a term, the economics of term sheets, and build a more informed perspective on the startup term sheet explained. This insight will help in term sheet negotiations and leave you with several pro tips on how to negotiate a term sheet and what to look out for. 

 

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