Understand the elements of a term sheet.
Once you’ve secured an investment, you’ll sign a term sheet with the investor.
Founders should understand the structure and nature of a typical angel or seed investment term sheet.
Make sure that you understand liquidation preference and dividends, which can skew exit returns to an investor.
Founders should understand the structure and nature of a typical institutional venture capital (VC) term sheet.
When negotiating a term sheet, understand the perspectives of what you are trying to achieve and what the investor is thinking about.