Key parts:<p>Imagine this pitch (a VC pitching a founder):<p>"Hello, we’re Founder Friendly Capital. We<p>• Give you a quick and clear answer. 3 meetings, 2 weeks, yes or no.
• Sign up to a plain-English, Founder-Friendly Termsheet. We pay our own legal costs.
• 1x Liquidation Preference, no veto on Arms Length transactions. Four weeks to decide. No one-way NDAs.
• We’ll always do our pro-rata in the future or sell you back our stake.
• Will never bring in an outside CEO without at least 50% Founder consent.
• You’ll get access to the following resources. X hours of our recruiter time. Access to Y network. Office hours with your Partner.
• Board Seat above $X, Board Observer below that, no Board Control
• No Option Pool Shuffle – the Pre-Money is the true Pre-Money
• Minimum investment amount is $__; Minimum ownership percentage is __%
• Choose your Partner – don’t be embarrassed to ask
• 10% of the Round can be used for Founder Liquidity
…"<p>Well said, Naval.