A term sheet that looks good on paper—high valuation, clean economics, reasonable board—can still be a trap. The decision to accept or walk away is rarely about whether a sheet is objectively attractive. It is about...
Category: Shareholder Agreements
Valuation is the first number founders see, the easiest to compare, and the least predictive of eventual outcomes. A high headline valuation paired with aggressive economic or control terms can leave founders with less money...
Loss of control in venture-backed companies rarely happens in a single negotiation. It happens incrementally—one reasonable concession at a time. A board seat here. An observer there. A consent right added “just for this...
Not all term sheet battles are worth waging. Time, leverage, and political capital are finite. One of the fastest ways founders weaken their position is by spending energy on the wrong issues—pushing hard on visible points...
Once you understand how term sheet provisions work mechanically, the real challenge becomes deciding how—and when—to engage with them in live negotiations. Negotiation in venture capital is often misunderstood. Founders...
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...
From the outside, venture capital behavior can appear inconsistent. One investor pushes valuation but tightens governance. Another moves quickly but insists on structure. A third sounds patient—until suddenly they are not....