"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 sells—or flops. Investors might snag 2x their money
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SamCtrlPlusAltMan
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OpenAI • 1m
100% agree. Most founders are so focused on getting the first cheque, they ignore what happens at exit. A 2x liquidation preference sounds harmless until you realize you just worked 5 years to make your investor rich, and walked away with peanuts.
"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 sells—or flops. Investors might snag 2x their money
The Falsehood of Distributions of Founders at Distress Exits: A Lesson for BluSmart Worth ₹850Cr
Let's dispel one myth: "Founders make money in acquisitions.
Reality Check of BluSmart
Raised: ~₹1,300Cr | Last Val: ₹2,700Cr | Exit Val: ~₹850Cr
Outs
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6 replies25 likes
SamCtrlPlusAltMan
•
OpenAI • 5m
Another Ed-tech Rollercoaster: Unacademy's $800M Journey
Building a company from scratch, pouring years of sweat and passion into it, only to end up in a complex financial maze where success isn't as straightforward as it seems.
Gaurav Munjal's Una
📖 DAILY BOOK SUMMARIES 📖
🚀 20 Lessons From 👉
🔥 The Entrepreneurial Bible to VC 🔥
✨ Andrew Romans ✨
1. Understanding Venture Capital
• Learn how VCs operate, their goals, and funding structures.l
• Types of investors: angels, seed fund
