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  1.  
  2. ANGELS 411
  3. Angel Primers
  4. Best Practices for Angel Investors and Entrepreneurs by Basil Peters
« What is preferred stock and why is it issued to investors? : Startup Company Lawyer
Why a buy-sell agreement is important | The Startup Lawyer »

Best Practices for Angel Investors and Entrepreneurs by Basil Peters

16 Oct 2008   | Angel Primers

Tags: exit strategies · governance · term sheets

LINK TO ORIGINAL ARTICLE:
  • http://www.angelblog.net/

Angelblog is devoted to the development of best practices for angel investors and entrepreneurs. Its goal is to facilitate profitable, fair and enjoyable interactions between angels and entrepreneurs.

After being an active angel investor for about fifteen years, I realized that many of the discussions I was involved in were virtually identical to ones I’d had many times before. A good example was during the negotiation of a term sheet. These usually involve a handful of angel investors, and a few entrepreneurs, who all want to build the very best term sheet for their exciting nascent enterprise.

Unfortunately, the previous experiences, and depth of knowledge, of the individuals are almost always very different. To finalize a term sheet, the individuals must to come to an agreement on some fundamental principles which will have a profound effect on the future of the company. Just a few of these terms include vesting, corporate structure, governance principles, financing strategy, valuation and exit strategy.

Each one of these terms includes aspects of fairness, ethics, law, business, entrepreneurship, psychology and investing. Very often, the initial opinions of the people around the table are radically different. In most cases, these are well-meaning, intelligent people who all sincerely want to find the best solution.

>>> READ MORE at:
  • http://www.angelblog.net/
« What is preferred stock and why is it issued to investors? : Startup Company Lawyer
Why a buy-sell agreement is important | The Startup Lawyer »

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