Pre-Seed Funding - Part 2: Mistakes to avoid from term sheet to contract signing

In the previous episode, we reflected on how we got from a pitch to a term sheet to raise our 1.8m pre-seed round for our Startup Flinn Comply. In this episode, we describe our learnings around signing a pre-seed venture capital funding round after receiving a term sheet. We talk about questions such as:

• What is a term sheet, and what should I pay attention to?
• What are essential terms I should know about and consider when negotiating my funding round?
• How do I structure my cap table?
• How can I ensure a smooth closing process from term-sheet to the actual capital increase?
• What mistakes should I avoid in consideration for future funding rounds?