Innovation America Innovation America Accelerating the growth of the GLOBAL entrepreneurial innovation economy
Founded by Rich Bendis

JASON DEL REY

Investors are growing more conservative as valuations are cooling down, and the balance of power between entrepreneurs and VCs may be shifting back toward the money men.

As a result, some investors feel more empowered to add crazy terms to a deal before closing. We chose not to include strictly financial demands, such as liquidation preferences that let investors cash out before anyone else, because they’re really set on a case-by-case basis. But here’s a collection of other terrible demands that entrepreneurs should watch out for.