Term Sheet Red Flags ☠️ Venture Capital

Term Sheet Red Flags ☠️ Venture Capital Abusive terms cause dilution, loss of control, & sabotage future deals Learn what they mean and when to push back Read the article https://ftb.bz/78B Listen to the Podcast https://ftb.bz/Podcast Founders Alliance https://ftb.bz/Alliance Mailing list for office hours https://ftb.bz/join Here are the standard term sheets I mentioned: Y Combinator https://ftb.bz/Y-Com-TS National Venture Capital Association https://ftb.bz/NVCA-TS Angel Capital Association https://ftb.bz/ACA-TS My article on pre-revenue startup valuations: https://ftb.bz/66B My article on why high valuations can be bad: https://ftb.bz/70B Table of Contents 0:00 Start 2:45 Top Term Sheet Tips 3:45 Valuation 4:45 Liquidation Preferences 8:57 Anti-Dilution Provisions 11:50 Board Seats 13;50 Pro-rata rights 15:48 Option Pool Increase 17:12 Dividends 19:23 Information Rights 20:00 Protective Provisions 22:48 Drag Along Rights 24:22 Right of First Refusal 25:57 Right of Co-sale 26:44 Redemption Rights 27:36 Warrants 28:31 Insurance 29:41 Investor Expenses 30:45 Founder Share Vesting 33:23 Standard vs. Custom Terms 35:15 Seed From Late Round Investors Lance Cottrell has been an active startup advisor and startup mentor for over a decade. He has helped countless startups navigate the key decisions of their journey, like when to take venture capital investment and negotiating term sheets. He works with many companies in accelerators like Y Combinator and Founder Institute. He provides help with startup funding including raising venture capital and angel investment. He can help you achieve liquidity for your company at a high valuation. Feel the Boot is a startup vlog of tips and advice for early-stage founders.