Capital-raising term sheets for angels and venture capitalists

Most of the time when raising equity capital, the offering terms are summarized in what is referred to as a term sheet. When dealing with angel investors, it is typical for the company to produce the initial term sheet.

Sometimes prospective angel investors will want to negotiate the initial term sheet, especially if one of the prospective investors has taken on the role of lead investor. For a variety of reasons, companies need to be careful not to fall into the trap of negotiating with each prospective investor.

Matt Storms

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