Preparing a Venture Capital Term Sheet: Key Terms for Investors and Companies Seeking Investment
Valuation, Capital Structure, Board Composition, Protective Covenants, Exit Terms
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will provide important guidance on the preparation and negotiation of venture capital term sheets. The panel will discuss terms that impact price and valuation, liquidation preferences, board composition, drag-along and participation rights, protective covenants, and more.
- Purpose of the term sheet and first steps in preparing
- Key terms
- Price and valuation
- Liquidation preference
- Anti-dilution: full ratchet vs. weighted average
- Board composition
- Drag-along rights
- Protective covenants
- Information and registration rights
- Participation rights
- Rights of first refusal and co-sale
- Closing conditions, confidentiality, and other provisions.
The panel will review these and other notable issues:
- What is the typical venture capital investment structure, and how should it be addressed in the term sheet?
- What is "market" regarding legal fees, closing costs, and legal opinions required in venture capital transactions?
- How might a signed term sheet benefit the company and the investor concerning third parties?
Mr. Colindres' corporate governance practice focuses on emerging companies and venture capital, including entity... | Read More
Mr. Colindres' corporate governance practice focuses on emerging companies and venture capital, including entity formation and capital structuring and equity incentive plan matters. His practice also includes negotiating and drafting commercial and licensing agreements, including confidentiality/nondisclosure, clinical trial, distribution, development, manufacturing, VAR and OEM 2nd co-marketing agreements, terms of service/use and privacy policies.Close