One of the most important parts of the venture financing process is negotiating the term sheet. Although only 2-3 pages long, term sheets contain summaries of the critical aspects of a financing. Listen to a simulated negotiation between a VC and an entrepreneur, followed by a discussion on the most important terms.
Recorded: February 25, 2009
Duration : 0:53:34
[youtube fb5Lm_BbR_E]
June 17th, 2010 at 4:40 am
Solution 1: …
Solution 1: Entrepreneurs must consider involving their experienced advisors at this stage of funding. Lawyers will be expensive and their loyalty may be questionable.
June 17th, 2010 at 4:40 am
VC is a seasoned …
VC is a seasoned professional who spent most of their career negotiating. They are coming from the position of high strength – lots of money, options to invest, he is not betting his career on one investment.
Entrepreneurs come from the point of lots of weakness. Most of them are not qualified to be good negotiators – young, energetic (unnecessary disclosures of information) and spent most of their short professional careers as a geek. Only negotiation experience is talking to their boss.