How to Close a Term Sheet Quickly

How do you quickly turn a signed term sheet into cash in the bank? I’ve seen entrepreneurs do it in one week and I’ve seen them do it in four weeks. How do you do it as quickly as possible? (1) Complete all business diligence before you sign a term sheet. (2) Set a firm closing date for your lawyers and justify it with something like, “I’m leaving the country on that date.” (3) Have a strong BATNA that keeps the other side moving quickly.


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Babak Nivi

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.

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Filed Under:
Collection: Funding
Category: Negotiating & Closing