

7 Things No One Ever Tells You About Raising Venture Capital Financing - xutopia
http://www.instigatorblog.com/7-things-no-one-ever-tells-you-about-raising-venture-capital-financing/2007/11/12/

======
xutopia
I especially like point 7. A more succesful team where you make a smaller
percentage is better than a failing team where you make a larger percentage.

------
mattmaroon
Maybe it's just because I went through Y Combinator, but I've heard those all
before.

------
downer
_It might not be worth negotiating the finer points of the deal at the term
sheet stage. The fact is, everything can be changed once a term sheet is
signed, so negotiating on the finer points of it may be overkill._

This reminds me of <http://www.negativland.com/albini.html> :

"These A & R guys are not allowed to write contracts. What they do is present
the band with a letter of intent, or "deal memo," which loosely states some
terms, and affirms that the band will sign with the label once a contract has
been agreed on. The spookiest thing about this harmless sounding little memo,
is that it is, for all legal purposes, a binding document. That is, once the
band signs it, they are under obligation to conclude a deal with the label. If
the label presents them with a contract that the band don't want to sign, all
the label has to do is wait. There are a hundred other bands willing to sign
the exact same contract, so the label is in a position of strength. These
letters never have any terms of expiration, so the band remain bound by the
deal memo until a contract is signed, no matter how long that takes. The band
cannot sign to another laborer or even put out its own material unless they
are released from their agreement, which never happens. Make no mistake about
it: once a band has signed a letter of intent, they will either eventually
sign a contract that suits the label or they will be destroyed."

