When startups and investors start making deals with eachother, they really need to know all about what needs to be in their term sheets. As these are often considered the fineprint of deals between founders and investors, detailed knowledge about them is essential. In this guest post Equidam co-founder Gianluca Valentini is explaining some of the concepts that occur in a term sheet and the general underlying principles.
The difference between an angel round, a seed round and a Series A is that the latter involves institutional investors, such as VC firms. These types of investors usually have more sophisticated requirements in terms of the type of shares they will receive.