Flipkart sold for $16 billion, but the founders got almost nothing.
After looking at 100+ startup deals, I found some toxic terms that hurt founders:
1. Liquidation Preferences: Investors get their money back first. If the sale price is low, founde
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Anonymous 7
Hey I am on Medialย โขย 5m
Honestly, Indian founders need to treat term sheets like battle plans. If youโre building the castle, why let someone else control the bridge?
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"The Most Dangerous Clause in Term Sheets That Founders Ignore"
Yes, it's the liquidation preference in your term sheet that can quietly screw you.
It decides who gets paid first if your startup sellsโor flops. Investors might snag 2x their money
Most founders talk too much.
When youโre in front of an investor, youโre not selling a productโyouโre selling a mission.
But many treat it like a sales pitch. They ramble. They explain every feature. They forget: time is oxygen.
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Dear Future Unicorn Founders,
Have you ever wondered why some startups walk away from investor meetings with term sheets while others leave empty-handed? The difference often comes down to one thing: the pitch.
After analyzing hundreds of successful
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You think everyone's watching you, right?
Newsflash: Theyโre not.
Most people are too caught up in their own stories, their own challenges, and their own failures.
If youโre worried about what others think, youโre wasting your time.
Instead,
Founders often fear failure from competition, market timing, or product flops. But the real silent killer? Bad investors.
From predatory term sheets to micromanaging board members, the wrong investor can tank your startup faster than any funding win
Venture Capital (VC) term sheets often include clauses that can have significant implications for founders and the future of their startups. Below are some critical clauses that founders should carefully evaluate:
1. Valuation and Equity
Pre-Money