VC Speak – Term Sheets 2.0 – Price

Posted on March 9, 2006
Filed Under Uncategorized |

A while back Brad and Jason wrapped up their series on term sheets and it’s become an essential reference for VC’s and entrepreurs alike (you would think VC’s would know term sheets inside-and-out, but believe me you would be surprised). The thing about the term sheet series that didn’t occur to me until pointed out today is that it very much was written from a VC perspective, leaving the entrepreneur’s perspective largely uncovered.

Enter Steve Fisher and VC Speak, he started a new series of posts taking the Term Sheet Series and rewriting it from an entreprenuer’s perspective.

As you grow the business with the leverage of VC funds, your stake in it reduces in size and the price of your stake becomes more and more important. The VC cares about economics and control and more importantly, so do you. Since the more you go down the private equity river, the less a less control you will have so you need to focus on the economics of the deal to you come out ahead.

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