Question
You are an entrepreneur negotiating a Series A round with a venture capital firm that has offered you what you consider to be a very
You are an entrepreneur negotiating a Series A round with a venture capital firm that has offered you what you consider to be a very low valuation. You are quite confident of the success of your venture and believe you deserve a higher pre-money valuation. Of course you are seeking out competing term sheets. But in the meanwhile, please select from the options below some terms you might offer the VC in return for a higher pre-money valuation. Note: you can select more than one option but only choose options that would be attractive to the investor so they might go higher in valuation. If you choose an incorrect answer, you will lose points.
Group of answer choices
Participating preferred stock instead of the convertible preferred they offered.
Shorter vesting on the founder shares.
Weighted average anti-dilution protection instead of the full-ratchet they offered.
A lower hurdle on the provisions for a forced conversion to allow an IPO.
A 2x liquidation preference instead of the 1x they offered.
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