A Primer on VC Term Sheets
- Posted by Geoffrey G. Gussis on August 28th, 2005
- Filed in Corporate/M&A
- Price
- Liquidation Preference
- Board of Directors
- Protective Provisions
- Drag Along
- Anti-Dilution
- Pay-to-Play
- Dividends
- Redemption Rights
- Conversion
- Conditions Precedent to Financing
- Vesting
- Information Rights
- Registration Rights
- Right of First Refusal
- Voting Rights
- Employee Pool
- Restriction on Sales
- Proprietary Information and Inventions Agreement
- Co-Sale Agreement
- Founders Activities
- Initial Public Offering Shares Purchase
- No Shop Agreement (also Unilateral or Serial Monogamy)
- Indemnification
- Assignment
Need to get up to speed on venture capital term sheet terminology? Well thanks to Brad Feld, the managing director at Mobius Venture Capital, you can educate yourself with a few clicks of the mouse. He’s posted a series of discussions on his blog about various aspects of negotiated venture capital term sheet provisions. The topics covered are as follows:
Model Venture Capital Documents
Planning for M&A of Venture-Backed Companies
“No Shop” is Passe - Try a “Go Shop” Provision
Katrina Undercuts Hibernia Bank Deal
Governing Law of the Highest Power?
December 5th, 2007 at 4:20 pm
I’ve always found that the Encyclopedia of Private Equity & Venture Capital at http://www.vcexperts.com helps our group out. They also just released an actual term sheet database that reveals the terms, and in some cases, the valutaion of other U.S. venture deals. It’s called the Private Equity Data Center (www.pedatacenter.com), but it mostly contains venture capital deals. Very affordable with a pay per company search, and very useful with helping our group with our last round of financing.