Term Sheet Questions


2 Votes
3 Answers
578 Views
Term sheet condition states we have to use the investor's law firm

Our company has just received a term sheet for a convertible debt investment. One of the clauses states that we have to pay the fees for drafting the agreements (which I understand is normal), but...

asked Apr 25 '13 at 07:20
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Phil
114 points

4 Votes
2 Answers
885 Views
Consequences with investors if company doesn't meet agreed milestones

I have a few questions about promised milestones to investors. Is it common to include very specific milestones in the term sheet? What are the consequences if you fail to meet them? Losing Board...

asked Oct 19 '12 at 05:02
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Wewill See
53 points

3 Votes
2 Answers
785 Views
What does anti-dilution protection mean in a term-sheet?

My question is in the context of a Term-sheet. I want to know what does anti-dilution preferences mean?

asked Oct 18 '12 at 05:36
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Lisa Howard
116 points

0 Votes
1 Answers
625 Views
Meaning of Automatic Conversion in Series AA TermSheet

There is a clause Automatic Converstion in Series AA termsheet of Y-Combinator which says Each share of Preferred will automatically convert into common stock, at the then applicable conversion...

asked Aug 30 '12 at 20:28
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Gaurav Agarwal
107 points

0 Votes
3 Answers
868 Views
VC term-sheets: Liquidation preference + capped participation clarification

I was reading "Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist " by Brad Feld and Jason Mendelson. It's a pretty good book but some parts aren't obvious, like the one below...

asked Dec 28 '11 at 18:00
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Sid
649 points

3 Votes
2 Answers
944 Views
Can you explain this angel Investment term sheet?

My startup received a Terms Sheet from an investor and my co-founder and I are trying to figure out if they are saying that they are going to want 30% of our profits at the end of every year or if...

asked Dec 9 '11 at 10:04
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Tom Delaney
16 points