Respond to Term Sheet Pushback
Use BATNA and term-specific reasoning to handle founder pushback on a seed term sheet.
Rae R Founder BATNA plus term translation Know your walk-away point, then explain each term by the interest it protects. Do not hide behind 'market standard' when the founder is asking about economics. Valuation Your valuation is lower than another investor's verbal number. Pro rata Why do you need pro rata if you already get ownership now? Preference Liquidation preference sounds like you get paid twice. Translate the term, then negotiate the trade The strong path knows the investor's BATNA but still explains each term in founder-understandable economics. Terms become less threatening when their economics are modeled clearly. Prepare a…
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