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Not My First Guess cover image

From Pitch to Payday, The Hidden Costs of Fundraising: Featuring Sam Simpson

Not My First Guess

NOTE

Founder-friendly vs. Investor-friendly Terms in Funding Rounds

In funding rounds, a term sheet serves as a distilled version of the contract, typically three to four pages long, capturing key agreements between founders and investors, acting as a negotiation anchor. Family and friends rounds and individual angels offer founder-friendly terms, while private club and angel networks lean towards more investor-friendly terms, including information rights obligating founders to provide regular updates to investors.

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