Great conversation and an important topic for founders navigating a raise. Thanks to Startup CPG for having Adam Marsh and Gabrielle McGonagle on to dig into the details that can get overlooked in the fundraising process.
New Episode: Term Sheets 101 with Giannuzzi Lewendon, LLP with Adam Marsh & Gabrielle McGonagle "It's important to really consider and weigh what you're giving away and to whom, early on." Adam Marsh and Gabrielle McGonagle, partners at Giannuzzi Lewendon, have spent a combined two decades guiding CPG brands through fundraising. Host Daniel Scharff sat down with them to break down term sheets. A few highlights: Valuation isn't everything. A great valuation can be undermined by control rights, liquidation preferences, and board seats. Founders need to weigh economics and governance together, not just the top-line number. A tiny board block can be a big deal. A provision limiting board expansion sounds harmless, but it can act as a backdoor block on your next financing round, since new lead investors almost always expect a board seat. Post-money option pools are more fair. When negotiating an option pool, pushing for it to dilute the new investor too (not just founders and existing investors) means everyone shares the cost of hiring the team that drives growth. Listen here: https://lnkd.in/etnWScU3 #StartupCPG #TermSheets #Fundraising #CPGFounders #VentureCapital