Uber founder Travis Kalanick’s advice for startup founders: “Preemptive deals are bad”

This advice is for seed stage companies looking at raising a Series A or a Series B. Often VCs will approach founders and say something like:

“Look, we'll just give you a term sheet. You don't have to do the whole funding process. It's going to waste your time and you can't run the business and I know that's what you want to do.”

Travis believes founders should not do this:

“Preemptive deals are bad. Don't do it. It almost always ends up with you getting a raw deal.”

Full video: Tech co “Travis Kalanick Startup Lessons from the Jam Pad - Tech Cocktail Startup Mixology“ (Oct 2010)