Negotiation with Investors & Intro to Term SheetsStartup Dhaka

• 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

NVCA Term Sheet Sample

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

Key Terms