An AI startup in Europe received term sheets from top investors. The terms looked good, but some clauses reduced founder control. We identified traps, negotiated better terms, and helped close quickly.
Industry
AI / SaaS
Stage
Growth; VC round at term-sheet stage
Geography
Europe
How it works
Challenge
The client received term sheets from top investors. While the valuation and check size were attractive, clauses could limit founder control and slow decision-making. The founder needed to act quickly, as decoding legal nuances would impact execution and revenue.
01
founder control (board structure / veto rights / share classes) strategic flexibility during scaling deal speed (long fundraising = real opportunity cost)
How it works
Solution
We took ownership of term-sheet analysis, mapped risks across options, and led negotiations to secure founder-friendly governance without slowing down the process. The key was aligning European operational reality with “US-style” venture expectations in the documents.
How it works
Our approach
Book an appointment
01
Diagnose
side-by-side comparison of multiple term sheets
list of hidden traps + their 12–24 month consequences
priorities defined: control, board, veto, equity, timeline
02
Design the target terms
recommended governance and negotiation strategy
“redlines” + fallback options (Plan A / Plan B)
investor-ready rationale for each change
03
Negotiate & close
negotiation leadership + document iteration
timeline management to avoid process drag
closing checklist so the founder returns to building
who we help
What we delivered
01
Share-class structure (Class A / Class B)
Goal: protect control while keeping the cap table investable.
02
Secondary for the founder (optional)
Goal: provide limited liquidity without distorting incentives.
03
Founder-aligned board setup
Goal: prevent governance paralysis during fast execution.
04
Reduced investor veto rights
Goal: fewer blockers, more operational speed.
05
Closing velocity
Goal: a fast path to signatures and closing, not months of churn.
How it works
Result
The founder secured terms that support hyper-growth rather than restricting it through governance traps. The round closed on a tight timeline, and the client quickly shifted focus back to execution — product, hiring, and revenue — instead of extended legal back-and-forth.
How it works
Result
$15M
$15M ARR in 12 months. Company momentum at the time of fundraising.
~3weeks to close
Speed from kickoff to signed documents and closing.
A famous VC logo doesn’t guarantee founder-friendly terms.
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