Angel Term Sheet Evolution - Part 3 - Questions and Answers from the Bellingham Angel Members

Bellingham Angel Group Education Breakfast November 17, 2009 - Basil Peters and Dan Rosen

Highlights of Angel Term Sheet Evolution- Part 3:

Should term sheets be binding?	Regional differences in director compensation	Building alignment on the exit
Stand stills and exclusivity - do we need them?	Is being on a board ever worth our time?	Redemption rights and exits
Vesting - best ways to implement? Tax considerations.	Angels have been spoiling companies by undercharging	Terms that create 'exit push' and 'exit pull'
Protective provisions drive directors crazy	Why VCs don't care about director compensation	How the lawyers have reacted to this term sheet
Balancing good governance and protective provisions	Lead investors should help entrepreneur budget for the board	Negotiating terms with entrepreneurs early in the process
Board compensation going up faster than other compensation	Why all directors should make a meaningful investment	Angels and VCs - Seattle and Silicon Valley
Board comp approx equal to CEO total comp - mix may differ	Subject matter experts rarely make the best directors	The importance of valuation

Part 4 of this video includes the rest of questions and answers.

Part 4 of this video is the rest of the Q and A.

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