One of The most exciting moments in the life of any newly baptized founder are the sweet relief of seeing a term sheet from an investor. After weeks, maybe months (but hopefully not years!) Of fundraising and pitching, there is nothing better than receiving this email with a PDF outlining the terms and conditions of the future VC relationship .
Of course, that joy quickly diminishes as all the specific nuances of the deal suddenly come to the fore. Getting the valuation you want or the amount of capital you're looking for is one thing, but what about getting the board of directors set up? What should you do about contract terms that could shape your startup for a decade or more?
The reality of Term Sheets, as our guest Lior Zorea discusses, is that the terms that you agree to early on with a startup are usually the terms that apply to the life of the business. This means that getting the first term sheet right is critical to the financial and capital success of your company.