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Keep Term Sheets Simple for Quicker Cash to Spend

Startup Professionals Musings

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from either. Your best strategy is to bring your own term sheet to the negotiation as a starting point.

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A Primer on Angel Investment ‘Simple Term Sheets’

Startup Professionals Musings

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from an angel, either. Your best strategy is to bring your own term sheet to the negotiation as a starting point. The check won’t clear in time to save you.

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Keep Term Sheets Simple for Quicker Cash to Spend

Gust

Remember a term sheet agreement is not a deal until the check clears. However, there is no set pattern of terms an entrepreneur might be able to anticipate from either. Your best strategy is to bring your own term sheet to the negotiation as a starting point.

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Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

For a traditional VC financing round structured as a sale of preferred stock, the best resources I can recommend are the Term Sheet Series by Brad Feld and Jason Mendelson and Startup Company Lawyer by Yokum Taku. I’ve posted a sample convertible note term sheet on my website.) There are two principal reasons.

Finance 178
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A Quality Benchmark for Accelerators: The Global Accelerator Network

Feld Thoughts

Provide some sort of seed capital to their founders. Take a small amount of equity (usually ~6%) and overall have terms that are favorable to entrepreneurs. Not every accelerator is/could be/would be a member in GAN, nor is it designed that way. Take no less than 5 and no more than 12 companies at a time.

Global 179
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Reading the Tea Leaves: Where Am I in My Seed Fundraise, Really?

View from Seed

One of the things we frequently discuss with founders is how to interpret and manage their dialogue with VCs when raising capital. We’ve written before on how to research partners , how to pitch the right investor at a given firm, and how to raise seed capital , generally speaking.

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What are the most valuable recommendations in order to raise money from VCs connected via Gust?

Gust

While VCs are the toughest nut to crack, there are many other (often better) sources of seed capital that may be available to you. This will almost always be the best approach to an investor. Gust is used by over 1,000 angel investment groups, accelerators, business plan competitions and support programs to manage their applications.