Dear SaaStr: Who Drafts the Term Sheet, The Entrepreneurs or the VC?
SaaStr
JUNE 17, 2024
Dear SaaStr: Who Drafts the Term Sheet, The Entrepreneurs or the VC? It depends who is selling and who is buying. In the old days, and still mostly commonly today, term sheets only came from VCs. Founders were almost always selling. Well, almost always. But even in the Old Days, the hottest of start-ups made up the terms. Microsoft took one venture investor, sold them only 5%, and named the terms: The Venture Capitalist Microsoft Allowed To Invest Early Today, it’s still the case.
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