Early in a venture relationship, alignment feels natural. Founders and investors agree on ambition, velocity, and direction. Everyone wants growth. Everyone wants success. The partnership feels straightforward. What is often...
Category: Projects and Commercial Contracts
Leverage in venture negotiations is often misunderstood as a function of confidence, reputation, or negotiation skill. Founders are told to “hold their ground,” “project strength,” or “create urgency” at the...
Note: This is an advanced extension of our venture capital term sheet series. It is intended for founders and executives who have already internalized the conceptual purpose of liquidation preferences—as downside protection...
You have spent the last few weeks deconstructing the individual gears of the venture capital machine. You now understand the linguistic traps of pre-money versus post-money valuation, the “silent dilution” of the...
In the previous installments of this series, we have focused heavily on the “Economics” half of the venture capital term sheet. We have dissected how valuation is measured, how dilution occurs on a fully diluted...
In our previous discussion, we deconstructed the concept of the liquidation preference—the “buffet line” that determines who gets paid first when a company is sold. We established that these terms are...
When you make an offer to buy goods, your written agreement of purchase and sale is irrevocable. Once the seller accepts or makes a counteroffer you like, it’s a legal contract. Having your supply agreement explained...