What are the common clauses in term sheets?
Common clauses in term sheets include valuation, investment amount, liquidation preference, and board composition.
Can you explain what liquidation preference means?
Liquidation preference determines the order and amount of payouts to investors in the event of a liquidation.
What is the significance of valuation in a term sheet?
Valuation sets the company's worth and influences the percentage of ownership investors receive.
Are there any clauses that protect investors?
Yes, clauses like anti-dilution provisions and voting rights help protect investors' interests.
How can I negotiate these clauses effectively?
Effective negotiation involves understanding your leverage, being clear about your goals, and seeking win-win outcomes.
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