Here are steps 9 and 10 in the fifteen steps to raising VC. Tomorrow I will share step 11, The Term Sheet Negotiation.

9. The Term Sheet: If all goes well during the initial due diligence phase, the venture firm will likely provide you with a term sheet. A term sheet is generally around two to eight pages and is an indication of interest in investing in you. With a term sheet, the investment firm attempts to create agreement around the general terms of the deal before the lawyers create the more extensive twenty to forty page investment agreement document. Depending on the amount of money you are raising, sometimes you will raise money from multiple firms at once in a syndicate deal. If this is the case, one firm will likely lead the deal and the other firm(s) will agree to the same term sheet. Often the first interested firm will be able to bring syndicate partners to the table, although sometimes you may need to find them yourself.

10. The Attorney Review: Once you receive a term sheet, have your attorney review it right away and provide feedback before you discuss it with the investment firm.