If You’re Not Reading VentureHacks, You Should

Posted on May 19th, 2007 by Paul Freet.

If you have raised venture capital, or are thinking of raising venture capital, you have got to spend some time on www.venturehacks.com and check back regularly. This quote from the site pretty much sums it up:

The VCs know more than you do. You, the entrepreneur, negotiate a term sheet once every few years. You negotiate your most important term sheet (the Series A) when you have the least experience. You negotiate against a VC firm that issues two to three term sheets per month.

For example, do you know why you should never, ever, ever, ever accept a Right of First Refusal in a term sheet?

And why a 20% option pool is actually bad for you.

And know how to properly negotiate vesting for founders.

I could go on and on, but read the site and get a great deal.