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What to look for in term sheets

April 10th, 2009

From a conversation with one of the top East Coast VCs, these are the things you must receive in a term sheet if you’re on the VC side: 

  1. Liquidation preference 
  2. A board seat
  3. Right of first refusal for subsequent funding rounds. 

The absence of any one of those terms should be a deal-breaker, but if you have those, you should be able to get close the deal.

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