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	<title>danielk.org &#187; Term Sheet</title>
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	<description>essays &#38; articles</description>
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		<title>Term Sheet</title>
		<link>http://danielk.org/blog/entrepreneurs/term-sheet/</link>
		<comments>http://danielk.org/blog/entrepreneurs/term-sheet/#comments</comments>
		<pubDate>Thu, 11 Mar 2010 03:42:00 +0000</pubDate>
		<dc:creator>Daniel Kivatinos</dc:creator>
				<category><![CDATA[entrepreneurs]]></category>
		<category><![CDATA[Angel Investors]]></category>
		<category><![CDATA[Convertible Debt]]></category>
		<category><![CDATA[Funding]]></category>
		<category><![CDATA[Startups]]></category>
		<category><![CDATA[Term Sheet]]></category>
		<category><![CDATA[Venture Capital]]></category>

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		<description><![CDATA[If you build a company, when negotiations happen an angel investor or a VC might want to write you a check for a percentage of your company. Generally an investor will pass you a term sheet, this is something that is non binding but is a layout of how the company will change, what the [...]]]></description>
			<content:encoded><![CDATA[<p>If you build a company, when negotiations happen an angel investor or a VC might want to write you a check for a percentage of your company.</p>
<p>Generally an investor will pass you a <a href="http://en.wikipedia.org/wiki/Term_sheet">term sheet</a>, this is something that is non binding but is a layout of how the company will change, what the investor expects and if it is a good term sheet will motivate the startup team to progress the company.</p>
<p>Some more intesting info on term sheets:</p>
<ul>
<li><a href="http://www.businessweek.com/smallbiz/content/aug2008/sb20080815_418048.htm">How to Negotiate a Term Sheet, Part I</a></li>
</ul>
<p>Some terms you should know about term sheets:</p>
<ul>
<li><a href="http://en.wikipedia.org/wiki/Drag-along_right">Drag Along Rights</a></li>
</ul>
<p>Types of investments an investor will make:</p>
<ul>
<li><a href="http://www.entrepreneur.com/money/financing/startupfinancingcolumnistasheeshadvani/article159520.html">Convertible Debt</a></li>
</ul>
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