8 ms·
* What should someone do if they get push back from an investor when asked to this term sheet? * If this term sheet is used, can we avoid the legal costs of a
by wasd 8y ago
* What should someone do if they get push back from an investor when asked to this term sheet?
* If this term sheet is used, can we avoid the legal costs of a Series A?
- jasonkwon 8y agoIt’s meant to provide transparency on what good and clean terms are. It won’t generate negotiating leverage for you if you don’t have any, though on the margins it might help you persuade someone that a term is “market.” Most of the legal costs don’t arise from the term sheet. They come from legal diligence and drafting the definitive docs.
- Kpourdeilami 8y agoProbably raise from elsewhere. We got a term sheet that included all the bad things mentioned about control in there. They wanted a 2-2-1 board + a whole bunch of protective provisions about requiring their approval for almost anything. Overall wasn't a pleasant experience and we would have saved months of our time had we not bothered working with them. We got very lucky that things didn't work out with them
- cascom 8y agoThe legal fees come from the definitive agreement not the term sheet.