Perspectives on Valuation and Control
Brad Feld and Jason Mendelson of Foundry Group talk about how founders should think about valuation and control when raising venture capital.
Topic
Venture Financing
- Categories covered in this topic:
- Clients
- Closings for Venture Finance
- Documents in Venture Financing
- Venture Deals
- Venture Math
Courses
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Startup Funding Stages
A company goes through several funding stages as it moves from formation to exit. This course takes a look at each of them and their impact on a company and its founders.
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Raising Venture Capital
A look at how emerging companies raise venture capital, from finding and pitching investors to closing a deal.
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Advice on Raising Venture Capital
Brad Feld and Jason Mendelson of Foundry Group on the issues founders should consider when raising venture capital for the first time, including when to raise money, picking the right venture partner and how to think about the economic and control rights at stake.
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Venture Capital Firms
This course describes how VC firms are structured, who works at them and how they make investment decisions.
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Convertible Debt Financings
Convertible debt financings are a common alternative to priced equity rounds. This course explains convertible debt financings and their most common form, convertible notes. It also describes alternatives to notes, such as SAFEs and KISSes.
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How to Be an Effective Venture Lawyer
Jason Mendelson of Foundry Group shares his perspective on what makes venture lawyers effective for their clients.
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Venture Capital Term Sheets
A discussion of the perspective of companies and investors on the main economic and control rights negotiated in a venture financing term sheet. Includes liquidation preference, anti-dilution provisions, board rights and employment matters.
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Amended and Restated Certificates of Incorporation
A walkthrough of an Amended and Restated Certificate of Incorporation (also called the Amended and Restated Charter) used in a venture capital transaction, with a focus on the sections governing preferred stock.
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Preferred Stock Purchase Agreements
A walkthrough of a typical Preferred Stock Purchase Agreement, including the related Schedule of Exceptions.
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Investor Rights Agreements
A walkthrough of a typical Investor Rights Agreement, including explanations of its main provisions.
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Right of First Refusal and Co-Sale Agreements
A walkthrough of a typical Right of First Refusal and Co-Sale Agreement, including explanations of its main provisions.
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Voting Agreements
A walkthrough of a typical Voting Agreement, including explanations of its main provisions.
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Ancillary Documents
Venture financing deals include several ancillary documents, in addition to the principal deal documents, that cover important legal and business issues. This course describes the ones most commonly used.
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Due Diligence for Venture Deals
A summary of the business and legal due diligence that parties conduct in a venture financing deal. Includes what to look for when reviewing key areas such as corporate governance and intellectual property, as well as an explanation of a cap table tie-out.
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Cap Tables and Pro Forma Cap Tables
Cap tables and pro forma cap tables are used before, during and after a deal. This course uses Excel examples to explain their structure, content and uses.
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Venture Capital Closings
An explanation of the closing process for venture capital deals, including preparing for and managing a closing, typical closing documents and post-closing requirements.
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Price Per Share Calculations
After the main financial terms of a venture deal are agreed, it’s usually up to the lawyers to work out the actual price per share. This course explains how these calculations work, and suggests a couple of useful Excel tips.
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Note Conversion Calculations
How to calculate the conversion of a convertible note into preferred stock when the note has a discount, a valuation cap or both.
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Dividend and Liquidation Preference Calculations
How to calculate dividends and liquidation preference in a venture financing deal.
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Pro Rata Rights Calculations
How to calculate the investment amount and number of shares to be issued in accordance with an investor’s pro rata right.
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Actual Investment and Share Amount Calculations
Once the financial terms of a venture deal are set, the lawyers need to work out exactly how much each investor is investing and how many shares they’ll be issued. This course explains the calculations involved.