Negotiating Term Sheets Michael Weiner April 20, 2017
|
|
- Kerry Fleming
- 5 years ago
- Views:
Transcription
1 Negotiating Term Sheets Michael Weiner April 20,
2 Form Convertible Debt (Friends / Angels) SAFE (Friends / Angels) Seed Series Preferred Stock (Angel / Smaller Funds) Preferred Stock (VC) 2
3 Convertible Debt Benefits Avoids Setting a Valuation Converts into Larger Equity Round Few Governance Rights 3
4 Convertible Debt Negatives Priority Over Equity Interest As Issuer raises more debt, can impact size of equity round 4
5 Negotiating Points Conversion Cap Conversion Discount of Warrants Fallback Conversion Price Interest Rate Maturity Repay or Automatic Conversion 5
6 Conversion Cap Concept: Conversion price will not exceed the price set by dividing a valuation by the outstanding shares. Example: Selling stock at $1.00 per share, or $5,000,000 premoney valuation 5,000,000 shares outstanding If conversion cap set at $4,000,000, then conversion price is 4,000,000 / 5,000,000 = $.80 per share. 6
7 SAFE Simple agreement for future equity Similar to convertible debt in concept Not considered debt Conversion discount and conversion cap No interest rate No maturity date so no ability to force payment 7
8 Seed Series Benefits Very few points and agreements to negotiate Typically Low Governance Company favorable 8
9 Seed Series Negatives Sets company valuation Investors may ask for full rights with small investment Real Founder dilution 9
10 Negotiating Points Pre-money valuation Liquidation preference simple Voting rights Protective provision minimal no vetoes Board seats no/maybe Anti-dilution protection Drag Along 10
11 Negotiating A Term Sheet Pre-money valuation Liquidation preference multiples/participating Voting rights Protective provisions cover important issues: change of control, future financings, compensation Board seats Redemption Rights Drag Along 11
12 Only Two Issues Matter Economics Pre-Money Valuation Amount raised Liquidation preference Control Protective provisions Board seats Drag Along 12
13 Pre-Money Valuation Concept: The value of the company prior to the proposed financing Divide pre-money valuation by current outstanding numbers of shares plus reserved options to provide purchase price per share of Preferred Stock Useful fiction for financing: Preferred Stock and Common Stock are worth the same There is no magic to setting a pre-money valuation Often driven by amount needed to be raised 13
14 Pre-Money Valuation Pre-Money Example # 1 Shares Founders 4,000,000 Employee Pool 1,000,000 Total 5,000,000 Pre-Money Valuation $5,000,000 = $1.00 per share Outstanding Shares 5,000,000 Post-Money Capitalization Founders 4,000,000 40% Employee Pool 1,000,000 10% Investors 5,000,000 50% 10,000, % 14
15 Pre-Money Valuation Pre-Money Example # 2 Shares Founders 4,000,000 Employee Pool 1,000,000 Total 5,000,000 Pre-Money Valuation $6,000,000 = $1.20 per share Outstanding Shares 5,000,000 Post-Money Capitalization Founders 4,000, % Employee Pool 1,000, % Investors 4,166, % 9,166, % 15
16 Liquidation Preference Concept: Preferred stockholders get their money back first on liquidation of the company Liquidation includes changes of control Simple preference Investors get money back or increased multiple off the top, common stock gets residual Investors will convert to common stick if will get more money in liquidation Participating Preferred Investors get money back first, then share with common stock on an as-converted basis Sometimes capped If uncapped, preferred stock will only convert on IPO 16
17 Protective Provisions Concept: Gives investors veto rights over major decisions Often involves directly using investors money or next round of funding Stockholder right, can vote differently than at the board level No fiduciary duty owed by investor to company or other stockholders Often without 51%, protective provisions give investors effective control 17
18 Drag Along Concept: Gives Investors right to drag along minority stockholders on sale of the company Minority stockholders lose appraisal rights Can force founders to sell 18
19 Board Seats Aim for odd number of seats Who elects independent board members Majority stockholders Agreement of the classes of stock Agreement of the Board How independent are they? 19
20 Common Mistakes Set pre-money valuation too high Lower amount raised to protect pre-money valuation Too much concern over control 51% Too many shares reserved for future employees Independent board members not very independent 20
21 Thank you! For more information, please contact: Michael Weiner 21
Negotiating Term Sheets Michael Weiner April 12, 2018
Negotiating Term Sheets Michael Weiner April 12, 2018 1 Form Convertible Debt (Friends / Angels) SAFE (Friends / Angels) Seed Series Preferred Stock (Angel / Smaller Funds) Preferred Stock (VC) 2 Convertible
More informationIdea to Liquidity & Beyond: Financing
Seminar Series: Startup Law 101 for Entrepreneurs Idea to Liquidity & Beyond: Financing Patrick Pohlen and Ben Potter, Latham & Watkins LLP October 10, 2017 Latham & Watkins operates worldwide as a limited
More informationHow to Raise a Little Money Without Spending a Lot
How to Raise a Little Money Without Spending a Lot Benjamin M. Hron bhron@mccarter.com 617.449.6584 @HronEsq Rick M. Lucash rlucash@mccarter.com 617.449.6568 @RickLucash 3.6.13 Overview Securities Used
More informationWelcome to RISE WEEK 2011 Seed and Angel Financing Strategies
Welcome to RISE WEEK 2011 Seed and Angel Financing Strategies Hosted by Matthew Lyons Partner, Andrews Kurth LLP mlyons@andrewskurth.com Copyright 2011 Andrews Kurth LLP and J. Matthew Lyons. All rights
More informationStarting a New Venture-Decision Time
Starting a New Venture-Decision Time The question: Form a business now OR continue to grow the science and development within the university. This is a cost-benefit analysis and you re definitely not ready
More informationVENTURE CAPITAL INVESTMENTS
VENTURE CAPITAL INVESTMENTS November 1, 2008 Jeffrey C. Hart Robinson, Bradshaw & Hinson, P.A. 5915 Farrington Road, Suite 201 Chapel Hill, North Carolina 27517 Phone: 919.328.8801 Email: jhart@rbh.com
More informationAllocating and Granting Equity in Start-Up Companies
Allocating and Granting Equity in Start-Up Companies Curt Creely, Esq. Foley & Lardner LLP TOPICS TO BE COVERED: Overview of key terms and concepts How should equity be allocated and/or granted in a start-up?
More informationI. VENTURE CAPITAL DEAL TALK
I. VENTURE CAPITAL DEAL TALK People often accuse lawyers of using too many words. I recently accepted a challenge to summarize the primary terms of a venture capital investment deal in 100 words or less.
More informationThe Challenge Balance Competing Interests
Agenda Introduction Applicable Laws (Including the JOBS Act) The Security Commonly Discussed Terms Top 10 (or so) Pitfalls Questions and Answers (But Don t Wait) 1 The Challenge Balance Competing Interests
More informationSTRUCTURING INVESTMENTS. Amit Singh Shareholder Stradling Yocca Carlson & Rauth, P.C IN STARTUPS November 7, 2018
STRUCTURING INVESTMENTS Amit Singh Shareholder Stradling Yocca Carlson & Rauth, P.C. 858.926.3012 asingh@sycr.com IN STARTUPS November 7, 2018 Amit Singh, Esq. Corporate Shareholder Amit is a shareholder
More informationSeries A Preferred Light The Best Outcome for Angels & Startups
Series A Preferred Light The Best Outcome for Angels & Startups Dan Rosen, CEO dan@drosenassoc.com September 21, 2009 1 Today s Agenda Angels did not used to be disciplined (lazy) Assumed they would be
More informationPresenting a live 90-minute webinar with interactive Q&A. Today s faculty features:
Presenting a live 90-minute webinar with interactive Q&A Convertible Debt vs. Priced Equity Rounds: Evaluating the Preferred Deal Structure for Early-Stage Financing Pros and Cons of Different Financing
More informationThe Challenge Balance Competing Interests
Agenda Introduction Some Challenges and Alternatives Applicable Laws (Including the JOBS Act) The Security Commonly Discussed Terms Top 10 (or so) Pitfalls Questions and Answers (But Don t Wait) 1 The
More informationHello. TODAY S EARLY-STAGE INVESTMENT VEHICLES. Michael Horten
Hello. TODAY S EARLY-STAGE INVESTMENT VEHICLES Michael Horten June 7, 2017 THE CHANGING Angel Financing LANDSCAPE Traditional Approach to Angel Financing Emulate the VC community by using Series A preferred
More informationGuide to Negotiating a Venture Capital Round. 201 Fourth Avenue North Suite 1870 Nashville, TN (615)
Guide to Negotiating a Venture Capital Round 201 Fourth Avenue North Suite 1870 Nashville, TN 37219 (615) 436-3005 Table of Contents Introduction... 2 Binding vs. Non-Binding Provisions... 2 Valuation,
More informationNegotiating Series A Term Sheets
Negotiating Series A Term Sheets Benjamin M. Hron Bhron@mccarter.com 617.449.6584 @HronEsq Part I: 10.06.16 Part II: 10.20.16 What is a Term Sheet Control Terms v. Economic Terms Standard Agreements Stock
More informationStart-Up Funding: Avoiding the Pitfalls and Positioning the Company
Start-Up Funding: Avoiding the Pitfalls and Positioning the Company Oded Green October 23, 2018 Copyright 2018 by K&L Gates LLP. All rights reserved. Agenda Introduction Some Challenges and Alternatives
More informationNegotiating Series A Term Sheets
Negotiating Series A Term Sheets Benjamin M. Hron Bhron@mccarter.com 617.449.6584 @HronEsq James F. Coffey jcoffey@mccarter.com 617.449.6533 @hopbos Twitter #mecic 11.20.13 Refresher: What is a Term Sheet
More informationABC: Up to $5,000,000 XYZ: Up to $8,000,000 Others: between $2 and $4 million
NON-BINDING SUMMARY OF TERMS SERIES A PREFERRED STOCK FINANCING NewCo Biosciences, Inc. March 9, 2013 This Term Sheet summarizes the principal terms of the Series A Preferred Stock Financing of the Company.
More informationFrom the WSGR Database: Financing Trends for Q1 2014
THE ENTREPRENEURS REPORT Private Company Financing Trends 2014 From the WSGR Database: Financing Trends for 2014 Wilson Sonsini Goodrich & Rosati s experience confirms reports that the market remains positive
More informationLegal Issues for Startups: Understanding Convertible Notes
Legal Issues for Startups: Understanding Convertible Notes Presentation to Boston ENET January 4, 2011 Mark A. Haddad Partner 617-832-1724 mhaddad@foleyhoag.com www.emergingenterprisecenter.com 2011 Foley
More informationThe Fairshare Model A Performance-Based Capital Structure for Companies Seeking Venture Capital via a CrowdFunded Initial Public Offering (IPO)
The Fairshare Model A Performance-Based Capital Structure for Companies Seeking Venture Capital via a CrowdFunded Initial Public Offering (IPO) The Nuts & Bolts slide deck for experts in capital structures
More informationInvesting 101 GLOSSARY
Investing 101 GLOSSARY 1 Angel Investment Terminology Capitalization table A capitalization table is a spreadsheet or table, typically for a startup or early stage venture, that shows capitalization or
More informationQUICK START GUIDE. 1. Raising money with a Post-Money Valuation Cap and calculating ownership sold
QUICK START GUIDE The biggest advantage of the post-money safe is that the amount of ownership sold is immediately transparent and calculable for both the founder and the investor. This Quick Start Guide
More informationAppendix A: Sample Term Sheet*
Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist, Second Edition By Brad Feld and Jason Mendelson Copyright 2013 by Brad Feld and Jason Mendelson Appendix A: Sample Term Sheet* ACME VENTURE
More informationCapitalizing For Growth
Capitalizing For Growth Why not structure your new business so that you re capitalized to accept venture capital investment, ready for growth, with options for employees, and prepared for a public offering?
More informationStart-up Seed Financing
IN-HOUSE INSIGHTS Lexis Practice Advisor Capital Markets & Corporate Governance Kristine Di Bacco and Doug Sharp FENWICK & WEST LLP Start-up Seed Financing Start-up companies use seed financings primarily
More informationThe University of British Columbia Board of Governors
The University of British Columbia Board of Governors Policy No.: 105 Approval Date: November 2000 Last Revision: Responsible Executive: Vice-President, Administration and Finance Vice-President, Research
More informationFinancing Trends for Q2 2014
THE ENTREPRENEURS REPORT Private Company Financing Trends 1H 2014 Price and Preference By Herb Fockler, Partner, and Eric Little, Knowledge Management Manager, Palo Alto It is a truth universally acknowledged
More informationTerm Sheet for Series A Round of Financing of XCorp
Term Sheet for Series A Round of Financing of XCorp mbbp.com Morse, Barnes-Brown & Pendleton, PC Waltham, MA Cambridge, MA mbbp.com CityPoint 230 Third Avenue, 4th Floor Waltham, MA 02451 781-622-5930
More informationSuccessful Entrepreneurship for Microsystems
Day 7-1 Successful Entrepreneurship for Microsystems Rakesh Kumar, Ph.D., Life Fellow IEEE November 3, 2015 rakeshk@eng.ucsd.edu Rakesh.tcx@gmail.com 858.945.3758 Teaching Assistants: Dharmil Chandarana
More informationSAFE PRIMER. Why. When
SAFE PRIMER A safe is a Simple Agreement for Future Equity. An investor makes a cash investment in a company, but gets company stock at a later date, in connection with a specific event. A safe is not
More informationVenture Capital Contracts: Part II Entrepreneurial Finance - Spring Antoinette Schoar
Venture Capital Contracts: Part II Key Terms of VC Contracts Anti-Dilution Provisions Covenants/ Control Terms o Voting Rights/Board representation o Protective Provisions o Registration Rights Employee
More informationShow Me the Money. Raising Capital for the Start Up. October 25, 2015
Show Me the Money Raising Capital for the Start Up October 25, 2015 Discussion Leaders Lisa Holter Shareholder Fredrikson & Byron, P.A. Christopher Melsha Shareholder Fredrikson & Byron, P.A. Notes of
More informationSession 12. Stock Options
Session 12 Stock Options Slide 1 Agenda Barbara Arneson Case Stock Options Slide 2 Barbara Arneson Case What is the number of shares outstanding at BioGene as of May 31, 2006? What is its current PE ratio?
More informationQbic Fund Venture Capital. Guy Huylebroeck Advanced Starters Seminar 16 October 2014
Qbic Fund Venture Capital Guy Huylebroeck Advanced Starters Seminar 16 October 2014 Contents I. VCs and how they work Qbic Fund Highlights Business Accelerator Sources of Capital Fund structure What does
More informationICPAK 22 nd Annual Executive Seminar From Private Equity to Public Market
Ernest Wong 17 Nov 2017 ICPAK 22 nd Annual Executive Seminar From Private Equity to Public Market Disclaimer The materials of this seminar / workshop / conference are intended to provide general information
More informationData Mining the Venture-Backed Company Charter
Data Mining the Venture-Backed Company Charter By Jonathan D. Gworek mbbp.com Corporate IP Licensing & Strategic Alliances Employment & Immigration Taxation Litigation 781-622-5930 Data Mining the Venture
More informationStructuring Venture Capital Deals
Structuring Venture Capital Deals Shikhir Singh To cite this version: Shikhir Singh. Structuring Venture Capital Deals. Economies and finances. Cass Business School, 2005. HAL Id: tel-00578728
More informationSeed Financing Overview
A Lexis Practice Advisor Practice Note by Kristine M. Di Bacco and Doug Sharp, Fenwick & West LLP Kristine M. Di Bacco Doug Sharp INTRODUCTION This practice note discusses seed financings. Start-up companies
More informationIMMERSIVE TECH, INC.
MEMORANDUM OF TERMS FOR THE PRIVATE PLACEMENT OF SERIES SEED PREFERRED STOCK OF IMMERSIVE TECH, INC. THIS TERM SHEET SUMMARIZES THE PRINCIPAL TERMS OF THE PROPOSED FINANCING (THE "FINANCING") OF IMMERSIVE
More informationFinancing a Startup: Selecting the Investor and Negotiating the Term Sheet - The Entrepreneur s Perspective
Financing a Startup: Selecting the Investor and Negotiating the Term Sheet - The Entrepreneur s Perspective J. Matthew Lyons 512.320.9284 mlyons@akllp.com October 26, 2016 1 1 Copyright 2016 Andrews Kurth
More informationAccelerator Curriculum 2012 Module: Capitalization
Accelerator Curriculum 2012 Module: Capitalization Andrew Ritten Faegre Baker Daniels LLP 8993441 Bio Andrew Ritten Joined Faegre Baker Daniels corporate group in 1993 Education: Yale University B.A. History,
More informationConvertible Debt Terms Survey of Market Trends 2017/2018
Convertible Debt Terms Survey of Market Trends 2017/2018 Overview In this report, we compile market data on convertible debt terms based on an analysis of over 100 issuer-side convertible debt transactions
More informationCapital Structure and Corporate Governance. The Role of Hybrid Financial Instruments. Lorenzo Sasso
Capital Structure and Corporate Governance The Role of Hybrid Financial Instruments Lorenzo Sasso Wolters Kluwer Law & Business Acknowledgements xi Introduction 1 Part I: Regulatory Issues of Hybrid Financial
More informationEDUCATIONAL NOTES TO THE SIMPLE AGREEMENT FOR FUTURE EQUITY (SAFE) April 2017
EDUCATIONAL NOTES TO THE SIMPLE AGREEMENT FOR FUTURE EQUITY (SAFE) April 2017 The SAFE as investment instrument came into being at the Y Combinator accelerator in Silicon Valley in late 2013. It addressed
More informationE145. Workshop B Staged Venture Financing
E145 Workshop B Staged Venture Financing Presented by Eric Carr (with Thanks to Professor Tom Byers) Stanford University Special Thanks to Scott Bowie and Mike Rosenbluth, Past E145 TAs Copyright 2007
More informationFinance, Securities, Regulation. Adam Sterling UC Berkeley School of Law
Finance, Securities, Regulation Adam Sterling UC Berkeley School of Law Introduction Introduction Introduction Introduction Introduction Introduction Today s Lecture Old School Venture Finance Securities
More informationThe Entrepreneur's Guide to Early Stage Financing. The Entrepreneur's Guide to Early Stage Financing
The Entrepreneur's Guide to Early Stage Financing The Entrepreneur's Guide to Early Stage Financing Table of Contents The Entrepreneur's Guide to Early Stage Financing Introduction... 3 The Lawyer s Role...
More informationEffectively Negotiating With a Venture Capitalist
Effectively Negotiating With a Venture Capitalist Alan Kraus Alan Zeiger Wayne Kimmel Ben Franklin Technology Partners Blank Rome LLP ETF Venture Fund Thomas Petro Steve Hobman Moderated by: Fox Chase
More information[NAME OF COMPANY] SUMMARY OF TERMS SERIES A PREFERRED STOCK FINANCING ([DATE])
[NAME OF COMPANY] SUMMARY OF TERMS SERIES A PREFERRED STOCK FINANCING ([DATE]) This summary of terms (this Summary of Terms ) summarizes the principal terms of a private equity financing of [Name of Company],
More informationTHE EARLY-STAGE TERM SHEET
THE EARLY-STAGE TERM SHEET After making the decision to invest in an early-stage company, an investor must consider both the type and value of the securities that will embody the deal. There are several
More informationFrom the WSGR Database: Financing Trends for Q1 2013
THE ENTREPRENEURS REPORT Private Company Financing Trends Q1 2013 Valuations by Industry Segment By Herb Fockler, Partner, Palo Alto In the last Entrepreneurs Report, we looked at pre-money valuations
More informationWelcome to RISE WEEK 2013
Welcome to RISE WEEK 2013 Seed and Angel Financing Strategies Hosted by Matthew Lyons Partner, Andrews Kurth LLP Overview Angel Investor Issues Basic Deal Structures: Loans Equity Other Common Pitfalls
More informationThe Price of Growth: The Lifecycle of a Company from a Founder s Dilution Perspective. By Mary Beth Kerrigan
The Price of Growth: The Lifecycle of a Company from a Founder s Dilution Perspective By Mary Beth Kerrigan mbbp.com CityPoint 230 Third Avenue, 4th Floor Waltham, MA 02451 781-622-5930 mbbp.com The Price
More informationTerm Sheets for Advanced and Financing Rounds
Term Sheets for Advanced and Financing Rounds Dr. Christian Wenger Dr. Beat Speck Zurich, Oktober 25, 2011 1 Introduction The Speakers Handouts Raise your voice! Zurich, Oktober 25, 2011 2 1 Agenda 1.
More informationThe Making of a Winning Term Sheet: Understanding What Founders Want
The Making of a Winning Term Sheet: Understanding What Founders Want Part II. Vesting Acceleration, Reallocation of Founder s Stock, Option Pool Dilution and Founder Liquidity By Jonathan D. Gworek mbbp.com
More informationPreferred Stock Financings with Common Share Repurchases Offered at the Preferred Price
Preferred Stock Financings with Common Share Repurchases Offered at the Preferred Price Can we conclude that repurchases occurred at fair value without killing the 409a? Naomi Derner, CFA Derner Valuation
More informationCapitalization Tables
A Special Report Capitalization Tables What they are and why they are important By Theresa Oatman Table of Contents Here are the sections you ll find in this report. What is a Capitalization Table? Why
More informationStockholder Agreements and Other Corporate Arrangements
and Other Corporate Arrangements Based on Presentation for NCET2 Course on Researcher Commercialization March 4, 2009 T: 646.861.7222 F: 646.810.8785 sleaf@leaflegal.com www.leaflegal.com My Legal Practice
More informationPrivate Equity Funding. Building an Investment Ready Business
Private Equity Funding Building an Investment Ready Business 1 Ideas2deals.com www.sbdccolumbus.com www.youtube.com/ohiosbdc Getting Financing Is In preparing for battle I have always found that plans
More informationPresenting a live 90-minute webinar with interactive Q&A. Today s faculty features: Kyle Hulten, Partner, InVigor Law Group, Seattle
Presenting a live 90-minute webinar with interactive Q&A Convertible Debt and Priced Equity Rounds: Evaluating the Preferred Deal Structure for Early-Stage Financing Pros and Cons of Different Financing
More informationConvertible Notes: Advantages & Disadvantages
Convertible Notes: Advantages & Disadvantages Overview: Convertible notes can be viewed as being either a tremendous or a toxic financing vehicle depending upon their specific terms and conditions, plus
More informationFrom the WSGR Database: Financing Trends for 2012
THE ENTREPRENEURS REPORT Private Company Financing Trends Q4 The Tug of War between Founders and Investors Founders Seem to Be Winning By Herb Fockler, Partner (Palo Alto) In the last Entrepreneurs Report,
More informationHYLETE, INC. FINANCIAL STATEMENTS AS OF AND FOR THE PERIOD ENDED JUNE 30, 2017
FINANCIAL STATEMENTS AS OF AND FOR THE PERIOD ENDED JUNE 30, 2017 Index to Financial Statements Pages Independent Auditors Report 1 Balance Sheets as of June 30, 107 and December 31, 2016 1 Statements
More informationAN INTRODUCTION TO THE CDVC APPROACH
AN INTRODUCTION TO THE CDVC APPROACH A WORKSHOP PRESENTED BY THE COMMUNITY DEVELOPMENT VENTURE CAPITAL ALLIANCE 12 March 2014 Washington, D.C. 1 Christopher Reim Managing Director, CDVCA Managing General
More informationLegal Organization of Technology Start Ups
Legal Organization of Technology Start Ups By Michael Prozan 650 348-1500 mike@mgcgroup.com This presentation provides a general overview and should not be taken as legal advice for any individual situation.
More informationStartup Valuation Methodology SVM. Prabir Mishra Managing Partner SAATRA Capital Advisory
Startup Valuation Methodology SVM Prabir Mishra Managing Partner SAATRA Capital Advisory How do we value a Startup? The most difficult question How do we value? Any clue? Depends on Investor? NO, Yes,
More informationFrom the WSGR Database: Financing Trends for 2016
THE ENTREPRENEURS REPORT Private Company Financing Trends Full-Year From the WSGR Database: Financing Trends for by Quarter Quarter and and Rounds Rounds by 10 9 % of All Financings 8 7 6 5 4 3 2 1 IN
More informationModule 4: The Venture Capital Partnership TABLE OF CONTENTS
Module 4: The Venture Capital Partnership Exit Alternatives 1.0 EXIT ALTERNATIVES 1.01 Sell to Owners 1.02 Sell to Treasury 1.03 Sell to Managers/Employees 1.04 Sell to Third Party 1.05 Initial Public
More informationSession 12 - Structuring a Start-up Transaction
- Structuring a Start-up Transaction All common stock deals Alernatives to all common stock deals Restricted stock Structuring a start-up as a flow-through entity (S corp, partnership) when venture capital
More informationFINANCING A STARTUP PART 2:
FINANCING A STARTUP PART 2: LEGAL ISSUES PEPPERDINE LAW SCHOOL ENTREPRENEURSHIP PRACTICUM 1Q17 JAMES C. ROBERTS III GLOBAL CAPITAL GLOBAL CAPITAL STRATEGIC GROUP GLOBAL CAPITAL LAW GROUP PC Please note
More informationCorporate Law Points & Business-Building Points Key issues for start-up or early stage companies:
Legal Issues for Entrepreneurs, Start-Ups and Emerging Companies Which Are Preparing to Raise Capital From Investors Presentation by Nancy Fallon-Houle 2006 Corporate Law Points & Business-Building Points
More informationEVALUATING VENTURE CAPITAL TERM SHEETS
CASE: E-460 DATE: 9/12/13 EVALUATING VENTURE CAPITAL TERM SHEETS After a year of intense work on a shoe-string budget, John Stevens and Edward Lopez breathed a sigh of relief. They had just received term
More informationCASE STUDY: STARTUP FUNDING THROUGH COMPLIANT TOKENIZATION
CASE STUDY: STARTUP FUNDING THROUGH COMPLIANT TOKENIZATION Startup A is a Bay Area-based company that intends to disrupt the lucrative package delivery market. The company has raised $500K from friends
More informationUnderstanding our investors: from business angels to venture capitalists
Understanding our investors: from business angels to venture capitalists Hello! I m Jordi Romero Factorial Founder and CEO HR Software & Benefits platform. 600k raised. 5,000 companies. 18 employees. itnig
More informationannotated term sheet
annotated term sheet www.highway12ventures.com The following Annotated Term Sheet is for illustrative purposes only and does not indicate our position on any substantive issue or with respect to any specific
More informationDrafting Shareholder Agreements for Venture Capital Investment
Presenting a live 90-minute webinar with interactive Q&A Drafting Shareholder Agreements for Venture Capital Investment Voting and Consent Rights, Transfer Restrictions, Drag-Along Provisions, Estate Planning
More informationFrom the WSGR Database: Financing Trends for Q3 2017
THE ENTREPRENEURS REPORT Private Company Financing Trends From the WSGR Database: Financing Trends for and Rounds by Quarter and Rounds by Quarter 10 9 % of All Financings 8 7 6 5 4 3 2 1 2012 2012 2012
More informationThe Basics of Cap Tables
The Basics of Cap Tables September 14, 2016 Trevor Chaplick, Partner, Greenberg Traurig Support by: Founding Members: Education Partners: Use chat to submit questions Yes, you ll get the slides We re recorded,
More informationTERM SHEET FOR MACH37 PARTICIPATION AND FINANCING OF [COMPANY NAME] [DATE], 2016
TERM SHEET FOR MACH37 PARTICIPATION AND FINANCING OF [COMPANY NAME] [DATE], 2016 This Term Sheet summarizes the principal terms of the proposed participation of [COMPANY NAME] (the Company ) in the Cyber
More informationChapter 2 Private Equity
Chapter 2 Private Equity 2.1 Introduction A rather broad definition of private equity might sounds like this: a professionally managed pool of money raised for the sole purpose of making actively-managed
More information(20 minutes presentation) Intro What is money? Equity, what is it, how does it work, where to find it, how much does it cost? Funding Where to find
1 (20 minutes presentation) Intro What is money? Equity, what is it, how does it work, where to find it, how much does it cost? Funding Where to find equity and debt? Tips for start ups How to use equity
More informationInvestment Guide Funds offered through the Washington State Investment Board
Investment Guide Funds offered through the Washington State Investment Board Investing Overview Asset allocation 2 Two investment approaches 2 Build and Monitor 3 One-Step 3 Diversification 4 Trading restrictions
More informationMore about Convertible Preferred Stock
More about Convertible Preferred Stock A startup company ("venture" in Korea) requires what seems like endless pools of capital to fund its operations as well as its research and development. Usually,
More informationFinancing Technology: Trends in debt & equity termsheets
Financing Technology: Trends in debt & equity termsheets Dan Allred Silicon Valley Bank (617) 796-6904 dallred@svb.com Twitter: @dgallred http://danallred.tumblr.com Technology Risk vs. Market Risk Funding
More informationUNDERSTANDING ANGEL INVESTING IN NEW BUSINESSES
UNDERSTANDING ANGEL INVESTING IN NEW BUSINESSES First Run Broadcast: December 18, 2012 Live Replay: April 15, 2013 1:00 p.m. E.T./12:00 p.m. C.T./11:00 a.m. M.T./10:00 a.m. P.T. (60 minutes) The start-up
More informationFrequently Asked Questions About Regulation FD. Updated September 20, 2000
Frequently Asked Questions About Regulation FD Updated September 20, 2000 Frequently Asked Questions About Regulation FD What is the purpose of Regulation FD? The Securities and Exchange Commission adopted
More informationValuation of Startups
Valuation of Startups Copyright 1978-2009, Ben Livson, BAL Consulting P/L. All rights reserved. It has yet to be proven that intelligence has any survival value. Arthur C. Clarke 2 is not equal to 3, not
More informationHelp Growing Businesses Get Financing
A Guide to Help Growing Businesses Get Financing WHAT S INSIDE: Financing Options: Finding the Best Fit for Your Business Preparing to Seek Funding Financing Terms You Should Know Learning about Lending
More informationVenture Capital Contracts: Part I Entrepreneurial Finance - Spring Antoinette Schoar
Venture Capital Contracts: Part I What Do Entrepreneurs Care About? Build a successful business Raise enough money to fund the venture Maintain as much value and control of the company as possible Get
More informationSome Basics of Venture Capital. Michael Kearns Chief Technology Officer Syntek Capital
Some Basics of Venture Capital Michael Kearns Chief Technology Officer Syntek Capital Outline The basics: how VC works Case study: DDoS defense companies What is Venture Capital? Private or institutional
More information[Company Name] Term Sheet
Rochester Angel Network Standard Term Sheet [Company Name] Term Sheet Dear < >: This letter sets forth the general terms on which [the interested members of Rochester Angel Network, or LLC name, and/or
More informationVenture Capital The Business of Innovation
Venture Capital The Business of Innovation Kellogg-Recanati International Executive MBA Tel Aviv, March 2017 Session 5 Izhar Shay VC 101 Investment Venture Capital Returns Year 1 Year 7 Investments Carry
More informationSHARES 101. Differences Between Stocks And Shares. What Is A Stock? Five Things To Know About Shares. What Is A Stock Market?
SHARES 101 Differences Between Stocks And Shares None. There are always questions being asked about the differences between stocks and shares. The bottom line is that stocks and shares are the same thing,
More informationCS155b: E-Commerce. Lecture 13: February 25, 2003
CS155b: E-Commerce Lecture 13: February 25, 2003 Some Basics of Venture Capital Acknowledgement: Michael Kearns, Syntek Capital (now at University of Pennsylvania) What is Venture Capital? Private or institutional
More informationConvertible Notes: Advantages & Disadvantages
Convertible Notes: Advantages & Disadvantages John O. Huston, Chair Emeritus, Angel Capital Association & Ohio TechAngel Funds updated October 2017. Overview: Convertible notes can be viewed as being either
More informationLate Stage Financings
Late Stage Financings San Francisco Session: Palo Alto Session: Tuesday, April 26, 2016 Wednesday, April 27, 2016 8:30 AM 11:00 AM PDT 12:00 PM 2:30 PM PDT Morrison & Foerster LLP Morrison & Foerster LLP
More informationA Piece of the Pie: Equity Compensation for Emerging Technology Companies
A Piece of the Pie: Equity Compensation for Emerging Technology Companies Rick Lucash Special Counsel McCarter & English, LLP 617.449.6568 rlucash@mccarter.com @ricklucash Travis Drouin CPA, Partner MFA
More informationStarting a New Venture. October 11, 2018 Frank Grassler, J.D. VP For Technology Development
Starting a New Venture October 11, 2018 Frank Grassler, J.D. VP For Technology Development Starting a New Venture Decision Time The question: Form a business now OR continue to grow the science and development
More information