By Andrew F. Boardman (CTO, LearnVC)
When negotiating a round of financing it is critical to look at the whole of what is being offered, and not just fixating on a particular term (the classic example is overvaluing the pre-money valuation).
There is a short term view (how much of the company are the investors buying for how much money) and a long term view (what happens if the company has a down round in the future? A mediocre exit? A home run?).
To help new entrepreneurs and future investors wrap their head around the whole thing, I’ve categorized the key terms