Some docs are too long and boilerplate to read, so this is how I read financing docs: (1) Read and understand everything in the term sheet. (2) Get a good lawyer because you probably don’t have one. (3) You probably can’t tell the difference between good legal advice and bad legal advice. So you will need a great advisor.
(Full Post: http://venturehacks.com/articles/legal-docs)
Babak Nivi is a co-founder of AngelList and Venture Hacks. Previously, he was an entrepreneur-in-residence at Bessemer Venture Partners and Atlas Venture. He has worked on startups including Songbird, Grockit, and Kovio. He went to school at MIT where received 2 patents and published in Science.