Securing funding isn't easy, but it doesn't have to be We sat down with three VCs to figure out how to spin up an investing network from the ground up.
We featured the first part of the conversation with James Norman of Black Operator Venture and other people.
The investors cover more about what to ask for in a term sheet and what to look out for.
The interview has been edited for clarity and length.
When you get a term sheet, start going back and forth. The valuation should be reflected in the term sheet. If you wait until you get that legal agreement in your inbox, it will start to affect how they feel about you.
The term sheet has been pulled by investors. You want to be as safe as possible in every stage of this. Clear communication is required for that to happen.
You want to have a bottom line in terms of what you're willing to accept as you plan out your whole fundraising process. You may need to capitulate at some point, but you should have a reason for it.
There will be a power dynamic because VCs are investing in leaders. How you manage that and move things forward affects how they think you will do other things.
The game began once you got the term sheet.
It is important that you get an agreement that is at the same level as your company. An angel investor trying to give you Series A preferred docs is not something you want to happen.
99% of the time, you should use a SAFE if you have a pre-seed or seed stage startup. No one can argue with what it has to offer. "Go talk to Y Combinator about that."
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