Key Takeaways from the Guide:
1) Valuation and Investment: Understand how pre-money and post-money valuations affect your ownership and control.
2) Structure of the Deal: From debt to equity, know what type of investment best suits your startup’s needs and why venture capitalists prefer certain structures.
3) Anti-Dilution Provisions: Learn how these clauses protect investors from future equity dilutions and what that means for you and future funding rounds.
4) Liquidation Preferences: Grasp the implications of different liquidation scenarios to ensure that your interests align with those of your investors during an exit.
5) Control and Governance: Decipher the balance of power concerning board composition and voting rights to maintain a level of control appropriate for your role and vision.