This market is terrifying for founders.
If you are a non-white man, this fundraising environment is downright predatory for a founder to raise in. Literally, offensive terms on the table in some cases.
Real things I have heard second hand (note these have not happened to me directly, but I trust the sources):
- Exploding term sheets: Not okay for a bunch of reasons but not giving a founding team time to consider deal terms builds a relationship on the wrong foundation
-Strict line that there will be NO negotiation on price or dollars in: It's normal to have a back and forth on these things and should be expected
- Back-channeling on founder pay! Groups of investors suggesting that founder comp be outlined in deal terms and locked until the next raise. WHAT?
- Crawl backs on VESTED founder equity: I can't even.
Seriously, your reputation when times are bad will carry with you when the times are good. Remember that before you screw someone that you need to be motivated to grow your investment.