Sep 30, 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Terms sheets can be founder-friendly or investor-friendly. The terms sheet provides terms in favor of the founder over the investor or vice versa.
Here’s how you can tell which one you have.
In a founder-friendly terms sheet:
There is no expiration date on the investment offer
The option pool comes out of both the investor’s portion, as well as the founder’s portion.
There is no confidentiality agreement. The founders are free to talk about the deal.
There is no liquidation preference for the investors.
The startup does not pay investors legal fees.
In an investor-friendly terms
sheet, these terms go the other way.
Thank you for joining us for
the Startup Funding Espresso where we help startups and investors
connect for funding.
Let’s go startup something
today.
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