Forgive me, but this post will likely be a bit of a rant.
I had a call with a founder I’m advising this morning. He is out there raising money, and he received a term sheet from an investor (yay!), but the investor suggested that the founder and his co-founder shouldn’t be taking a salary. The investor argued that the founders were “working for equity,” and that his investment shouldn’t go to the founding team.
That, ladies and gentlemen, is absolute hogwash. Now, if this were an isolated incident, I might write it off as a clueless investor. As the fundraising climate is shifting, however, I’m hearing more investors suggesting things l …
