Lee: VCs use post-term sheet legal negotiations to diligence the CEO
Jenny Lee · Top 10 Mistakes Founders Make with Series A with Black Mangroves, Square Peg, Vertex, and GGV · Apr 13, 2023 · at 42:37
Jenny Lee (Managing Partner at GGV Capital) discusses deal negotiation dynamics with founders during Series A funding rounds.
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“From an investor point of view, a term sheet sign is not a deal done. We continue to do our due diligence up to the last day, and the entire negotiation process with a founder on the terms is a, like the most revealing of all due diligence”
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“You can get a deal, series A, Less than 50 K is the norm. If you're paying more than that, something's wrong. Maybe 20, 20 K is what we see if there's no restructuring, right?”
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