Venture Deals: Due Diligence, Term Sheets, Cap Tables, and Venture Math

Covers due diligence for venture finance deals and the main economic and control rights negotiated in venture finance term sheets, plus how to make key calculations such as cap tables, pro forma cap tables, prices per share, pro rata rights, note conversions, dividends, and liquidation preferences.

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  1. still frame from Economic Rights Preview

    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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    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.

  3. still frame from Pro Forma Capitalization Tables Preview

    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.

  4. still frame from Calculating Price Per Share Preview

    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.

  6. still frame from Calculating Pro Rata Rights Preview

    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.

  7. still frame from Actual Investment and Share Amounts Preview

    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.