Startup Funding Espresso -- Varying the Terms of the Raise
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In a fundraise, one typically uses the same term sheet throughout the raise. From time to time, investors will demand certain rights and conditions.\xa0\xa0 If there are no investor representations, then you may be able to do so. For some investors, you may need to vary the terms of the raise and use a different term sheet. The key is to keep the valuation the same but add additional terms to make the deal more attractive. Additional terms include most-favored-nation status which means the investor gets the best deal that anyone else in the round gets.\xa0 It also could include advisory and board positions, warrants, or redemption rights. Lead investors often ask for special terms to compensate for their time and effort. Investors spending time mentoring the team also may ask for these considerations. Before changing the terms or using new term sheets, you should check with your attorney. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0 Music courtesy of .