As a young entrepreneur, you may have convinced yourself (or been given advice) that you should raise money. The wisdom of that move aside, when attempting to raise a giant pile of cash to make your dream a reality, it’s important to know that you will be entering a new world, where the natives speak a language that sounds like English but most certainly isn’t.
You’ll be talking VC and Angels speak. Here’s a translation:
Dry Powder – Translation, “Money to invest”
A dirty little secret is that VCs leave their doors open, continue to talk to entrepreneurs, and act like they can (and will) still invest in you well after they have allocated all of the money in their current fund to companies and follow-on funding.
Term Sheet – Translation, “Yes”
This is what you want — the Holy Grail, as they say. A written offer to give you a pile of money in exchange for most of your company, your first-born child and your left kidney. I’m kidding about the first-born child part, of course.
More details: www.entrepreneur.com