
Just Say No: VC terms that can really hurt - epi0Bauqu
http://venturehacks.com/articles/terms-that-hurt?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+nivi+%28Nivi%29
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grellas
Helpful points.

The problem in today's VC environment is that "terms that can really hurt" are
front and center in the typical term sheets. Perhaps the most abusive of all
is the aggressive imposition of reverse vesting without protections of any
kind for the entrepreneur from arbitrary terminations. Throw in abusive
liquidation preferences, etc. and the result is that entrepreneurs should be
very selective in doing VC deals. Until this climate changes for the better,
do them only after you have built significant value in your company and have
reasonable leverage in negotiating terms.

