What are the typical terms of venture capital?
Venture capital terms often include equity stake, valuation, liquidation preference, and board representation.
Can you explain what liquidation preference means?
Liquidation preference determines the order and amount investors get paid back in case of a liquidation event.
What is an equity stake?
An equity stake is the percentage of ownership in a company that a venture capital firm receives in exchange for their investment.
How does valuation affect the investment?
Valuation affects how much equity investors receive for their investment and influences future funding rounds.
What are some common negotiation points in these terms?
Common negotiation points include the amount of investment, equity percentage, board seats, and exit strategies.
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