Business Quote by Gil Penchina
“When I participate in a Series A deal with VCs, entrepreneur-friendly terms go out the window. VCs remain attached to age-old traditional industry terms. 'Ratchet,' 'carry,' 'vetoes' - you name it.”
About This Quote
VCs often cling to legacy terms, limiting flexibility for entrepreneurs in Series A deals.
In simple terms: VCs use old terms that can hurt entrepreneurs.
Key Takeaway
Negotiate for fairer terms.
Themes
finance
entrepreneurship
negotiation
Mood
cautious
realistic
Type
advisory
pragmatic
When to use this quote
- startup fundraising
- seed rounds
- term negotiations
- investment meetings
Key Concepts
term sheets
power dynamics
venture capital
Questions to Reflect On
- What terms are most restrictive for you?
- How can entrepreneurs protect themselves?
A Different Perspective
VCs may have legitimate risk concerns justifying certain terms.
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![“If the State does not acquire supremacy over [vast private] enterprises, it becomes their puppet, and they become the real State.” quote by Bertrand Russell](https://sms4smile.com/quotes/img-quotes/bad/bertrand-russell-69_acquire_if-the-state-does-not-acquire-supremacy_1379.jpg)