Dave Gammell, in this article published by Xconomy, explains why before taking money, entrepreneurs need to be forthright about where they stand on the key issues that can derail a promising venture and devastate a partnership.
If all goes well, the day will come when just one small thing will stand between you and funding for your startup: your signature on a term sheet. Most founders quickly sign on the line and get back to the business of growing their business. Smart ones set aside the paperwork, grab their business partners, and sit down together to talk. What comes next isn't easy, but it's essential. It's a heart-to-heart, slightly uncomfortable let's-bare-all conversation, the kind couples should have before they get engaged. Because signing a term sheet demands a similar commitment (though without the reception and bridesmaids). Read the full article