In an angel round, it’s usually the company that is proposing terms for the deal. In the case of a venture capital firm, if the initial Due Diligence has gone well, the VC will propose a term sheet. The term sheet lays out the investor’s terms for making an investment. Term sheets generally state that they are non- binding documents. In other words, nothing is official until you close the round by signing the formal, legal documents (see “Closing an Investment”).
Try to get More than One
In a VC round, you’d like to get term sheets from multiple VCs, if you can (although one is always better than none!) If you get more than one, you have much more leverage to negotiate terms
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These articles tagged “angel investors” are from our curated article/blog-post list. View the entire list of curated angel-investor articles at this link.
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