07/25/2022 - Convo with Matt about term sheet
by Joe · 14 things on Twos
- Doesn’t love that they get a board seat for 200k. Typically the first board seat comes with $5M in the series A. The board seat is very powerful.
- “We are excited about getting them on board and starting to build a marriage here”
- “Let’s punt the board seat, we can discuss that in our next round”
- “I would put Andreas on my board”
- The problem is when you meet a series A or seed investor that wants a board seat, now you’ve lost control. $200k is not that.
- “If you eat the bullet on this, it’s not the worst - I do believe there are two alternatives”
- Add him to the board which then expires at the Seed and then you can renew it
- If you give him a board seat, just make sure that you and Parker have 2 votes while Andreas has one.
- By the next time a board member joins, we still have control
- He’s betting on us as the founders, so we want this to be a founder led company
- “You want to maintain power as much as possible”
- ✓ Go through network on LinkedIn, send the forward-able email for each person and in two clicks, I can forward to the person
- Up to 10 for this first slew
- A deal is not closed until the money is in the bank. You should be talking to as many people as possible to get them to participate or pin them up against it