Both Sides of the Table

JULY 22, 2010

Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. No hidden terms.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Both Sides of the Table

JULY 25, 2011

There were no explanations for all of the confusing details outlined in a term sheet. He gave me the human explanation for what the term meant. But know that every term in your term sheet is there as a result of some dispute of the past between shareholders or between shareholders & management.

Liquidation Preference 304

Liquidation Preference Term Sheet Cap Table Participating Preferred 304

Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). This post assumes that you have a basic understanding of Series A financing terms. Dividend preference. Series Seed Financing Documents (by Fenwick & West).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Scott Edward Walker

JUNE 9, 2019

Over the past few weeks, two of my clients have received financing term sheets in which the investors requested super pro rata rights. I liken it to participating preferred — which founders also do not typically understand until it is too late. Introduction. Pro Rata Rights. The post WHAT ARE SUPER PRO RATA RIGHTS?

Preferred Stock 56

Preferred Stock Term Sheet Dilution Stock 56

The Startup Toolkit

NOVEMBER 4, 2011

You’re facing two term sheets and have boiled them down to the most relevant facts, listed below. The financials immediately jump out when we talk about term sheets: what’s the valuation? Next, we check that we’re safe from any particularly onerous terms like participation preferred.

Term Sheet 31

Term Sheet Dilution Participating Preferred B2C 31

The Startup Toolkit

NOVEMBER 4, 2011

You’re facing two term sheets and have boiled them down to the most relevant facts, listed below. The financials immediately jump out when we talk about term sheets: what’s the valuation? Next, we check that we’re safe from any particularly onerous terms like participation preferred.

Term Sheet 20

Term Sheet Dilution Participating Preferred B2C 20

Professor VC

JULY 25, 2013

Yes, there are a number of cases in the middle where having a senior or participating preference does make a difference in liquidation proceeds, but I argue that it does very little to overall returns in a diversified portfolio. Angel Investors Silicon Valley term sheets venture financing venture capital'

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46