In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal.  Let’s dive in, taking it from the top: Type of Security :  Convertible Promissory Notes, bearing interest at a simple interest rate of 8%. These deal terms are simple but significant.  On to more specific terms next week.  MORE >>

If I was a full time consultant in IT security (where I have 5 years experience) and then signed a non-compete, I’d be putting myself out of work for a year without receiving a penny. Three Card Monty Corporate Structures. If you’re in a complex structure with several multinational entities, that risk is compounded. MORE >>

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. On the investor side, representations and warranties in the purchase agreement primarily relate to securities law compliance. Convertible Promissory Note(s). MORE >>

Reading the allegations against Goldman Sachs and Fabrice Tourre in the case of structured CDO scandal (aka Abacus), I am reminded of Spitzer and how a General Attorney used a witch-hunt as a political tool, only to be later exposed himself in the company of barely clad ladies. Pro-life / pro-choice type debates lead nowhere. read this ). MORE >>