Before signing a term sheet with a VC, what is essential to check as a first-time entrepreneur?
Channel: AnD Ventures
Date: 06/12/2022

Before signing a term sheet with a VC, I think it's very important for the founders to first feel comfortable with the investors.

Who are your investors? Do you want to work with them for the long term?

**Investment is like a marriage**, so when you receive a term sheet you need to feel comfortable with your investors.

You need to know that they can give you what you need and that they bring you value.

The second thing you should look at is the size of the round, how much money you’re raising, and the valuation.

For how much money you’re raising, **you want to raise enough money so that you have a runway of at least two years**, to get you through to the next round.

**For the valuation**, look at market standards, look at other companies that raised money in your field within the past several months. Then you know how to determine, more or less, your valuation.

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