Negotiation with investors & intro to term sheets

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Negotiation with Investors & Intro to Term Sheets Startup Dhaka

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Negotiation with investors & intro to term sheets

Transcript of Negotiation with investors & intro to term sheets

Page 1: Negotiation with investors & intro to term sheets

Negotiation with Investors & Intro to Term SheetsStartup Dhaka

Page 2: Negotiation with investors & intro to term sheets

• Asymmetry of Information• Investor – Sees more deals• Entrepreneur – Knows market and company

• BATNA – Best Alternative to a Negotiated Agreement• Understand Investor Motivations

• Financial v. Strategic v. Personal v. etc.• Build Long-Term Relationship• Smart v Dumb Money

Tips for Negotiations

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NVCA Term Sheet Sample

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• Cap Table• Pre-Money and Post-Money Valuation• Liquidation Preference• Voting Rights & Board Competition• Anti-Dilution Protection

Key Terms