Juma as done well in answering, but I am thinking term sheet comes from the investor because it contains set of conditions to deal with the outcomes of possible risks that comes with him investing. However, termsheet should be negotiated and renegotiated to avoid later misunderstanding.

10-20% is ideal on the first phase (this largely depend on your financial need). 


regards,
Isaac Kiplagat

On 23 May 2016 at 07:01, Vincent Mosoti via skunkworks <skunkworks@lists.my.co.ke> wrote:
Thanks rsohan and Charles for your pointers.

On Sat, May 21, 2016 at 10:40 AM, Charles Juma <itscharlesjuma@gmail.com> wrote:
>  1) Who is responsible for making the term sheet, Investor or Entrepreneur?

Experienced investors will have one to kick start the negotiations
otherwise its up to the founder.

>  2) What's the ideal equity percentage that's given to an Investor funding an early stage start-up ?

Depends on the valuation and money raised but generally expect between
15-20%. The ideal should be to not lose control(retain majority, issue
prefs, etc...) and to put in protections in the shareholders agreement
that protect the founders and certain decisions. All the investors are
putting in is money while the founder is taking all the risk to create
value.

On a side note, there is an event[1] coming up on the Angani implosion
that I would expect to cover these issues and the consequences of a
poorly structured investment with bad investors.

1. http://www.strathmore.edu/en/calendar/79/529-SAEN-Lessons-from-Silicon-Savannah-The-Angani-Story

/CJ

On Fri, May 20, 2016 at 5:54 PM, Vincent Mosoti via skunkworks
<skunkworks@lists.my.co.ke> wrote:
> For Investors/ Entrepreneurs in the list, i have 2 questions regarding the
> subject;
>
> 1) Who is responsible for making the term sheet, Investor or Entrepreneur?
> 2) What's the ideal equity percentage that's given to an Investor funding an
> early stage start-up ?
>
> NB: If anybody has a term sheet template specifically for Kenyan market,
> please do share.
>
> --
> Vincent Mosoti,
> Analytics/Business Intelligence Consultant.
> Skype: vmmosoti
> Phone:  +254 722 972805
> LinkedIn: ke.linkedin.com/in/vmosoti
>
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--
Vincent Mosoti,
Analytics/Business Intelligence Consultant.
Skype: vmmosoti
Phone:  +254 722 972805
LinkedIn: ke.linkedin.com/in/vmosoti

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--
Isaac Kiplagat. KIP®