What Are Common Terms and Conditions Set by Private Investors?
Private investors often set specific terms and conditions, including:
1. Equity Stake: The percentage of ownership the investor receives. 2. Board Seats: Investors may require a seat on the company's board of directors. 3. Liquidation Preference: Terms that dictate how proceeds are distributed in the event of a liquidation. 4. Anti-dilution Provisions: Clauses that protect investors from dilution in future funding rounds. 5. Exit Strategy: Expectations for how and when the investor will exit the investment, such as through an IPO or acquisition.