Amidst the big rush for Funding, Funding, and more Funding, most founders get carried away by the “hulla” in the market rather than trying to understand the real implications. One such example is at the time of initial negotiation with the Investors.
The Term Sheet is the first document that sets the terms of the deal and breaks the ice of negotiation between the promoters and the investors. However, most of the founders do not understand the meaning of the primary clauses in the Term Sheet, which might put them in a disadvantageous position. Continue reading “Hacking the term sheet”