6
VCs don’t have “non-negotiable terms
A VC or attorney may tell you that certain deal points or provision are “standard” or “always the way we do it.” However, that doesn’t mean it isn’t negotiable. While it may be a preference or typical, each investment is different and few terms (if any) are never changed in the context of a deal.
7
Act professionally if you are evaluating multiple term sheets
In the event you are considering multiple investment offers or are awaiting a term sheet from an investor who is likely to invest, be certain that you keep the potential investors informed of your timetable. Investors who feel like they are being played against one another will oftentimes balk at the deal and find another candidate for their investment.
8
Remember that you have to work with the VC after you close the financing
Negotiating a term sheet (and closing the entire deal) can seem adversarial, but don’t create a situation where you can’t work with the VC who will ultimately be serving on your board of directors. VCs expect to negotiate the deal, expect issues to arise in the process, but expect to get the deal done.
Comments - add comment