“Yes, we would like to invest”. The magic words that any startup owner loves to hear. Your idea is no longer just a seed in the back of your mind; it is about to be watered allowing it to blossom into the reality you always knew it could be.
After the celebratory high fives and handshakes followed by the compulsory boozy lunch with your new best ‘investor’ friend, a term sheet or funding agreement arrives to formalise your relationship. The agreement is rather lengthy and contains some legal jargon; defining exactly when is the last day of the month, is important. Other than that it seems pretty straight forward. I mean how complicated can it be, you give us money, I work hard, and we skip and dance together while we share in the super profits, right?
To read the full, original article click on this link: 6 Things every startup should watch out for before signing with an investor | memeburn
