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This advice is geared toward seed-stage companies that are looking to raise Series A or Series B funding. Often, venture capitalists will approach founders with an offer like this:
“Look, we’ll just give you a term sheet. You don’t have to go through the entire funding process. It’s going to waste your time, and I know you want to focus on running the business.”
However, Travis Kalanick believes founders should steer clear of such deals:
“Preemptive deals are bad. Don’t do it. It almost always ends up with you getting a raw deal.”
