less humans, more robots

Signing a term sheet is only step one.
[ After all those cold calls, emails, meetings, you got your Termsheet! Good! Getting a term sheet is a significant milestone but if you think the process is smooth sailing after that, think again. Post-signing of the term sheet is when the real work begins!]

It might not be worth negotiating the finer points of the deal at the term sheet stage.
[ This doesn’t mean you shouldn’t negotiate for what you want and believe in, but recognize what the term sheet is: a letter of intent to invest, not a binding or absolute contract.]

Due diligence is an “interesting” process.
[And for most entrepreneurs it’s a completely foreign concept and frustrating experience. You’ve just got a term sheet, you’re excited, you’re ready to roll, and suddenly you get a rather extensive list of questions and deliverables the venture capitalists would like to see. Take it seriously, pour your heart into it]

The paperwork is extremely detailed and ‘fairly’ extensive.
[YES]

Most of the deal focuses on negative details.
[ Most of what you’ll negotiate, and most of what will be found in the contract between you and the venture capitalists is there to account for potential problems. This can be frustrating because you want everyone on the same page; everyone’s excited and eager to turn the business into a success, but here you are negotiating what to do when the shit hits the fan]

You ‘the Entrepreneur’ pay all the legal bills.

Don’t just focus on how much you’re raising and what chunk of the company you’re giving up.
[You have mentors and advisors in place right? they’ll help you ]

[via: Ginko]