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Former founder here. I wish I had had this when I was raising my series A. I lost control of the board at my series A when the VC said that a 2-2-1 structure wo
by rsweeney21 8y ago
Former founder here. I wish I had had this when I was raising my series A. I lost control of the board at my series A when the VC said that a 2-2-1 structure would be better for everyone. 13 months later, I was fired from the company I had started. The risks are real.
Had I known what a standard, clean series A term sheet looked like, I could have just pointed to this term sheet on ycombinator.com and said - "Make it like that."
I've found the Y Combinator resources to be some of the most valuable resources out there for startup founders. Do yourself a favor and familiarize yourself with what is available. It could help you not get fired from your startup.
- thedudeabides5 8y agoYeah, thanks guys!
- xodast 8y agoCould you link to some of these resources , their start up school doesn't really include documents such as this.
- allenleein 8y agoHere you go: https://www.ycombinator.com/resources/ https://www.ycombinator.com/resources/
- ascar 8y agoWhat's a 2-2-1 structure and how did it result in you getting fired? Edit: just saw it's in the article > The way in which founders most often lose control at the Series A is with a 2-2-1 board structure, i.e. 2 founders, 2 investors and an independent board member. The loss of board control is most significant because it means the founders can be fired from their own company.
- icedchai 8y agoAt least you made to series A. I know guys who didn't make it through a seed round without loss of control.