Need to get up to speed on venture capital term sheet terminology? Well thanks to Brad Feld, a co-founder of Foundry Group, 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 VC term sheet provisions. The topics covered are as follows:
- 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
- Indemnification
- Assignment