Term Sheet Red Flags ☠️ Venture Capital
Abusive terms cause dilution, loss of control, & sabotage future deals
Learn what they mean and when to push back

Read the article https://ftb.bz/78B
Listen to the Podcast https://ftb.bz/Podcast
Founders Alliance https://ftb.bz/Alliance
Mailing list for office hours https://ftb.bz/join

Here are the standard term sheets I mentioned:
Y Combinator https://ftb.bz/Y-Com-TS
National Venture Capital Association https://ftb.bz/NVCA-TS
Angel Capital Association https://ftb.bz/ACA-TS

My article on pre-revenue startup valuations: https://ftb.bz/66B
My article on why high valuations can be bad: https://ftb.bz/70B


Table of Contents
0:00 Start
2:45 Top Term Sheet Tips
3:45 Valuation
4:45 Liquidation Preferences
8:57 Anti-Dilution Provisions
11:50 Board Seats
13;50 Pro-rata rights
15:48 Option Pool Increase
17:12 Dividends
19:23 Information Rights
20:00 Protective Provisions
22:48 Drag Along Rights
24:22 Right of First Refusal
25:57 Right of Co-sale
26:44 Redemption Rights
27:36 Warrants
28:31 Insurance
29:41 Investor Expenses
30:45 Founder Share Vesting
33:23 Standard vs. Custom Terms
35:15 Seed From Late Round Investors


Lance Cottrell has been an active startup advisor and startup mentor for over a decade.
He has helped countless startups navigate the key decisions of their journey, like when to take venture capital investment and negotiating term sheets.
He works with many companies in accelerators like Y Combinator and Founder Institute.
He provides help with startup funding including raising venture capital and angel investment.
He can help you achieve liquidity for your company at a high valuation.
Feel the Boot is a startup vlog of tips and advice for early-stage founders.