I gave out a term sheet last week to a founder of a great vertical SaaS company. The CEO gave me a lovely compliment on how I presented him with the opportunity. I felt great about this term sheet because the deal demonstrated a win-win for everyone. Although the founder appreciated the thoughtfulness of the structure, he enjoyed more how I presented it to him.

What did I do to make it so special, you ask? Instead of shooting it to his email box, I just went through the term sheet with him in person.

Receiving an offer is a very personal moment between an investor and a founder. It’s when reality sinks in, and all the cards are on the table. The investors offer what they think the company (and by proxy the team) is worth. While also putting together terms around their capital infusion.

I insist on being present when the founder reads the term sheet because I want to interpret my rationale behind the economics and terms. I do not want that to be left to their lawyers or board members.

I learned this from doing it the wrong way for years. We used to send out term sheets and wait for a response. We got deals done, but I felt it put an icy wall between the management team and us.

Time will tell if we get this term sheet signed with this company. Hopefully, my personal touch in this process will give us an edge.