Joe’s TBV terms concerns
by Joe · 11 things on Twos
- Will the $16M option make it more complicated to raise from other investors at a higher valuation?
- $1M is ~33% of a 3.5M round and they wouldn't want that much for a lower valuation
- Don’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.
- Can we add them to the board which then expires at the Seed and then you can renew it
- Most favored nation - they get the terms of any more favorable SAFE
- Major investor rights - they get the rights of any investor that follows
- Anti-dilution provision - stock doesn't get decreased when we fund, the option shares won't get diluted
- Liquidation priority doesn’t bother me
- First right of refusal - didn’t see this in the contract
- Updated TBV Terms Thoughts
- Term Sheet Notes