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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

JANUARY 12, 2010

Term-sheets for preferred stock offerings are designed to protect the investor in case things don’t go as well as planned.   It is very expensive if you’re the entrepreneur since it doubles the cost to the company of paying dividends to the entrepreneur. Second a liquidation preference and a participation.

Term Sheet 68
Term Sheet Valuation Dividend Liquidation Preference 68
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Venture Capital Term Sheets – Redemption Rights

Scott Edward Walker

JULY 7, 2011

Redemption rights are principally designed to protect investors from a situation where, after a period of time, their portfolio company is just moving “sideways” and, accordingly, is not an attractive acquisition target or IPO candidate.

Term Sheet 49
Term Sheet Redemption Venture Capital Preferred Stock 49
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