The Startup Term Sheet Explained
June 3, 2008
Jason Mendelson and Brad Feld wrote a LONG series of posts detailing the various parts of a term sheet you might expect to receive from a venture capital firm. These posts are a HUGE resource for any entrepreneur interested in raising venture capital. Definitely recommended reading:
- 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
