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Sessions · Advisor session

Term sheet red flags in preferred financings

Wednesday, May 6, 2026 · 12–1 PM PDT

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About this session

Not every term sheet is founder-friendly — even when it looks like one. Preferred financings come with layers of terms that can quietly shift the balance of power if you don't know what to look for.


In this session, Daniel Neuman from Carney Law will walk through the most common red flags founders miss when reviewing term sheets for preferred rounds - the clauses that sound standard but can cost you control, economics, or both.

We'll cover:

  • Participation rights and how they can double-dip on your returns
  • Anti-dilution provisions that hit harder than you'd expect in a down round
  • Protective provisions that give investors veto power over key decisions

Come with your questions — or bring your actual term sheet. This is a small-group, interactive session. Not a lecture.

Daniel Neuman

Hosting this session

Daniel Neuman

Shareholder, Attorney, Carney Law

Danny Neuman is a corporate and securities attorney who works closely with startups, emerging companies, and venture capital funds. He advises clients on a range of business and legal issues that often arise during the different stages of a company’s lifecycle. This includes helping founders and entrepreneurs with choosing the right business entity, navigating securities law and regulatory compliance, establishing strong corporate governance structures, and developing strategies to protect intellectual property. Danny also guides clients through mergers and acquisitions and serves as outside counsel on day-to-day legal and operational matters.Negotiating early-stage financings is one of Danny’s core strengths. He brings deep experience in guiding companies through capital raises from angels, venture capital funds, and strategic investors. With a strong understanding of commercial and intellectual property law, Danny frequently drafts and negotiates complex agreements, particularly those involving data privacy and technology licensing.

Founders, startup teams, investors and executives often turn to hm for direct, hands-on legal support. His clients span a range of industries, from software, e-commerce and virtual and augmented reality to life sciences, healthcare, manufacturing, real estate and hospitality. Known for his practical, business-oriented approach, Danny helps innovative companies manage risk, scale effectively and adapt to rapid change.

Before joining Carney, Danny worked at a boutique corporate and securities law firm in Tucson, Arizona, served in-house at a large aviation company, and completed a general counsel internship with a major defense contractor. A native of Seattle, he brings a strong regional perspective to his practice and remains deeply connected to the Pacific Northwest’s entrepreneurial and investment communities.

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For companies that have raised at least $1M from venture firms.